(Reuters) – Becton Dickinson and Co on Thursday raised its full-year profit forecast and beat estimates for the second-quarter results on strong demand for its drug delivery devices and surgical equipment.
The medical device maker joins peers Stryker Corp and Abbott Laboratories, which have raised their full-year forecasts on the easing of staffing shortages and recovery in medical procedures volumes.
The company’s largest unit that sells devices to administer drugs and automate pharmacy system has reported sales of $2.36 billion, beating analysts’ average estimate of $2.23 billion.
Interventional unit that offers surgical and critical care devices recorded sales of $1.19 billion, beating estimates of $1.12 billion.
Revenue in the life sciences segment, which sells diagnostic devices, fell 14.2% to $1.28 billion from a year earlier, as demand for its COVID-19 test kits slumped due to lower levels of infections.
Looking ahead, the New Jersey-based company expects nominal sales of its COVID-19 test kits, reducing its full-year forecast to $50 million from its prior forecast of about $50 million to $100 million.
Becton, Dickinson and Co, however, has raised its annual profit forecast for the second time.
On an adjusted basis, the company now expects to earn a profit 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, it reported a profit of $2.86 per share, topping analysts’ average estimate of $2.74 per share, according to Refinitiv IBES data.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Shweta Agarwal)
