BDX Downgraded After Mixed Q2 and Lower Guidance

Becton Dickinson & Co. (BDX) reported mixed second-quarter results, with adjusted EPS of $3.35 beating expectations but revenue of $5.27 billion falling short, while organic revenue growth was just 0.9%. The company lowered its fiscal 2025 organic sales growth and EPS guidance, citing ongoing operational challenges, de-stocking, tariff impacts, foreign currency headwinds, and research funding constraints. Analyst sentiment worsened, as Goldman Sachs and Piper Sandler downgraded BDX and reduced price targets, while Jefferies also cut its target but maintained a Buy rating. BDX highlighted continued margin improvements and announced a $2.5 billion U.S. manufacturing investment. The Medical segment outperformed, but Life Sciences and Interventional segments lagged. Shares have declined significantly in 2024 as investors reassess BDX's ability to meet its revised outlook.