Becton Dickinson raises 2023 earnings forecast as demand rebounds

(Reuters) – Becton Dickinson and Co raised its full-year profit forecast on Thursday and beat second-quarter earnings estimates on strong demand for its drug delivery devices and surgical equipment.

The medical device maker joins peers Stryker Corp and Abbott Laboratories in raising their full-year forecasts for easing staffing shortages and a recovery in medical procedure volumes.

The company’s largest division, which sells drug delivery devices and pharmacy systems automation, posted sales of $2.36 billion, topping analysts’ average estimate of $2.23 billion.

The interventional unit, which offers surgical and critical care equipment, posted sales of $1.19 billion, beating estimates of $1.12 billion.

Revenue at its life sciences segment, which sells diagnostic devices, fell 14.2% to $1.28 billion from a year earlier as demand for COVID-19 test kits declined due to lower infection rates.

Looking ahead, the New Jersey-based company expects nominal sales of its COVID-19 test kits, lowering its full-year forecast to $50 million from an earlier forecast of about $50 million to $100 million.

However, Becton, Dickinson and Co has raised its annual profit forecast for a second time.

On an adjusted basis, the company expects earnings of $12.10 to $12.32 per share this year, compared with its prior forecast of $12.07 to $12.32 per share.

Excluding special items, the company reported profit of $2.86 per share, which topped analysts’ average estimate of $2.74 per share, according to Refinitiv IBES data.

(Reporting by Khushi Mandowara in Bengaluru; Editing by Shweta Agarwal)