Becton, Dickinson and Co. (BDX) reported strong fourth quarter and full fiscal 2009 results. For the fourth quarter, earnings per share were $1.25, beating the Zacks Consensus Estimate by a cent and the year-ago earnings by 14 cents. For fiscal 2009, earnings per share came in at $4.95, which was below the Zacks Consensus Estimate by a cent but surpassed the year-ago earnings by 53 cents.

Quarterly Results

Revenues for the reported quarter came in at $1.9 billion as against $1.81 billion in the year-ago quarter, representing an increase of 4.7%. However, revenues grew 8%. excluding the unfavorable impact from foreign currency translation.

In terms of business segments, worldwide BD Medical revenues increased 8.2% to $1.01 billion in the quarter. The growth was driven by strong sales of Pharmaceutical Systems products, coupled with solid sales of Medical Surgical Systems products. Excluding the unfavorable impact from foreign currency translation, revenues increased 13%.

Global revenues at the BD Diagnostics segment in the quarter increased 4.9% or 8% excluding the unfavorable impact from foreign currency translation to $580.0 million. Growth was driven by sales of safety-engineered devices, cancer diagnostics products and infectious disease testing systems, including flu-related products.

Worldwide revenues at the BD Biosciences segment came in at $312.2 million for the quarter. This represented a year-over-year decline of 5.2% or a decrease of 4 % excluding the unfavorable impact from foreign currency translation. Funding constraints impacted demand in the U.S. for capital equipment in the research and clinical segments.

Becton derives a bulk of its revenues from international operations. International revenues accounted for roughly 56% of total revenues.

Fiscal Year Results

Total revenues for fiscal 2009 came in at $7.16 billion, up 1.2% from $7.07 billion reported in the year-ago quarter. Revenues grew 5% excluding the unfavorable impact from foreign currency translation. International revenues accounted for roughly 55% of total revenues in fiscal 2009, which was roughly identical to fiscal 2008.

Outlook

Becton expects revenues for the full fiscal year 2010 to increase approximately 6%, or 5% to 6% excluding the estimated favorable impact from foreign currency translation.

Furthermore, the company projects earnings to grow approximately 1%?3% over the fiscal 2009 earnings, or 7%?9% excluding the estimated unfavorable impact from foreign currency translation.

Currently, we are Neutral on Becton.

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