BD raises full-year forecasts again, expects Alaris infusion pump approval

By the numbers

Q2 Revenue: $4.82 billion

1.5% increase year-over-year

Q2 Net income: $438 million

1.5% increase year-over-year

Q2 Earnings per share: $1.54

2% increase year-over-year

BD said it’s increasing full-year revenue and profit forecasts for the second straight quarter as several of the company’s product lines outperformed market growth rates in the latest period.

The maker of medical devices, medication management systems and life sciences tools said its diversified portfolio offset declining COVID-19 testing volumes and inflationary pressures, resulting in fiscal second-quarter revenue growth of 1.5%, BD said in an earnings call on Thursday. Excluding COVID-19 testing, revenue rose 6%.

Sales of $4.82 billion in the quarter exceeded analysts’ consensus estimate of $4.69 billion, while adjusted earnings per share of $2.86 topped the average forecast of $2.74, according to J.P. Morgan analyst Robbie Marcus.

Stronger results in BD’s Medical and Interventional businesses offset softer sales in Life Sciences to drive better-than-estimated revenue in the period, Marcus noted.

Still, some analysts were looking for a bigger boost to the company’s full-year forecast.

“We believe investors will view BDX's 2Q23 release and updated FY23 guidance as mostly positive, but likely with a little less upside to guidance than expected,” KeyBanc analyst Matthew Mishan said in a report to clients.

BD shares fell 3.4%, or $8.86, to $254.75 in morning trading on the New York Stock Exchange.

Alaris FDA submission

CEO Tom Polen said on the earnings call that BD is confident that the resources the company has invested in its Food and Drug Administration submission for its Alaris infusion pump will lead to the device gaining clearance, although he declined to offer a timeline for when the system might return to the market.

The FDA asked BD to file a new 510(k) application to review Alaris after problems with the system’s hardware and software led to a string of recall notices. BD filed the submission in 2021.

“As we’ve discussed many times, getting Alaris back on the market is our No. 1 priority,” Polen said.

Forecast

BD forecast fiscal 2023 adjusted EPS in a range of $12.10 to $12.32, up from its prior outlook of $12.07 to $12.32, reflecting an increase of 1.5 cents at the midpoint.

The company now expects 2023 revenue in the range of $19.2 billion to $19.3 billion, up from its previous forecast of $19.1 billion to $19.3 billion, reflecting an increase of about $50 million at the midpoint.