WASHINGTON (dpa-AFX) - Becton, Dickinson and Co. (BDX) reported Tuesday a lower second-quarter profit, hurt by higher costs and a drop in US sales in its Biosciences segment. Earnings per share from continuing operations matched analysts' expectations, while top line results grew 3.6 percent and surpassed Wall Street view. The medical technology firm also lifted its earnings per share and revenue growth target for fiscal 2012.
The company also said it still plans to repurchase, subject to market conditions, $1.5 billion of its common stock in 2012.
'We posted solid revenue growth led by our BD Medical and BD Diagnostics segments, despite continuing challenges in the U.S. in our BD Biosciences segment,' said Chief Executive Officer and President Vincent Forlenza.
BD Biosciences segment posted a 1.3 percent increase in revenues to $340 million, while US revenues dropped 8 percent in the quarter. The company noted that overall segment growth continues to be negatively affected by weakness in the U.S. research market.
In the BD Medical segment, revenues were $1.02 billion, up 4.1 percent from last year. BD Diagnostics segment generated revenues of $630 million, representing an increase of 4.1 percent from the preceding year.
In the second quarter, the company's net income declined to $291.03 million from $312.02 million in the previous year. On a per share basis, net income improved to $1.39 from $1.38 per share in the prior year on lower share count.
Meanwhile, earnings per share from continuing operations remained flat at $1.38. On a foreign currency-neutral basis, earnings per share from continuing operations for the recent quarter increased 2.9 percent. On average, 19 analysts polled by Thomson Reuters expected earnings per share of $1.38 for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter grew 3.6 percent to $1.99 billion from $1.92 billion in the prior-year quarter and also exceeded analysts' estimate of $1.94 billion. On a foreign currency-neutral basis, the growth was 4.6 percent.
Total operating costs and expenses increased 6.9 percent to $1.58 billion.
Looking ahead to the full year 2012, BD raised its outlook range for earnings per share from continuing operations to $5.68 - $5.73 from its earlier guidance of $5.60 - $5.70. Analysts project earnings of $5.66 per share for fiscal 2012.
The company also lifted its full-year revenue growth outlook to a range between 1 and 2 percent from a flat revenue view earlier, reflecting the anticipated effects of favorable currency translation. On a currency-neutral basis, the company raised the lower end of its revenue growth guidance of 2 to 4 percent to 3 to 4 percent.
BDX closed Monday's regular trading at $78.45 on the NYSE.
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