BD's Q1 Earnings Call: Our Top 5 Analyst Questions

Yahoo

26-06-2025

Becton, Dickinson and Company's first quarter results were met with a sharp negative market reaction, reflecting concerns around revenue performance and margin compression. Management attributed the shortfall primarily to weaker demand in its Life Sciences segment, driven by reduced global research funding and slower-than-expected recovery in diagnostic testing volumes. CEO Tom Polen stated, 'We are not satisfied with this quarter's top-line growth,' highlighting both external pressures—such as changes in U.S. research grant policy—and internal supply chain adjustments. The company also pointed to delays in returning blood culture testing to normal levels, despite resolving earlier supplier issues.
Is now the time to buy BDX? Find out in our full research report (it's free).
Revenue: $5.27 billion vs analyst estimates of $5.35 billion (4.5% year-on-year growth, 1.5% miss)
Adjusted EPS: $3.35 vs analyst estimates of $3.28 (2.1% beat)
Adjusted EBITDA: $1.52 billion vs analyst estimates of $1.54 billion (28.9% margin, 1.1% miss)
Adjusted EPS guidance for the full year is $14.20 at the midpoint, missing analyst estimates by 1.2%
Operating Margin: 10.4%, down from 14.5% in the same quarter last year
Constant Currency Revenue rose 6% year on year (4.7% in the same quarter last year)
Market Capitalization: $48.98 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Larry Biegelsen (Wells Fargo) asked for clarity on the magnitude and mitigation of tariff expenses, with CFO Chris DelOrefice explaining that the $0.25 per share impact is net of mitigation efforts and would need to be partially annualized for next year.
Robbie Marcus (JPMorgan) pressed on specific drivers behind the downward revision in organic growth, with DelOrefice breaking down the headwinds as primarily stemming from China, research spending cuts, and slow diagnostic recovery.
Matt Taylor (Jefferies) explored the company's levers for managing tariffs, prompting CEO Tom Polen to detail inventory repositioning, supplier shifts, and the use of alternate global manufacturing sites to reduce exposure.
Travis Steed (Bank of America) questioned the credibility of the accelerated growth outlook for the second half, with management conceding that macro volatility has made guidance more difficult but expressing confidence in the pipeline of launches and operational execution.
Patrick Wood (Morgan Stanley) asked about sustaining internal efficiency programs, to which Polen and President Mike Feld highlighted that the BD Excellence initiatives are still expanding and viewed as energizing for employees, freeing up time for value-added work.
In the coming quarters, the StockStory team will be monitoring (1) the pace of recovery in diagnostics and research funding environments, (2) successful ramp-up and market uptake of new product launches such as FACSDiscover A8 and CentroVena One, and (3) the effectiveness of tariff mitigation strategies as the external landscape evolves. Execution on the planned business separation and further margin improvements through BD Excellence will also be key signposts.
BD currently trades at $170.90, down from $206.90 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free).
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