By Siddhi Mahatole
May 7 (Reuters) – Becton Dickinson raised annual profit forecast and beat estimates for second-quarter results on Thursday, riding strong demand for its drug-delivery devices and surgical equipment, sending its shares up more than 5%.
Strong demand for injectable diabetes and obesity drugs of GLP-1 class has buoyed the performance of device makers such as Becton Dickinson, which makes injection pens used to administer these therapies, though analysts warn oral weight-loss pills could weigh.
GLP-1 therapies remain a “strong growth driver,” CEO Tom Polen said on a call with analysts. “Oral GLP-1 is expected to be incremental and complementary,” while injectables will “continue to remain a backbone of the category for the foreseeable future,” Polen said.
The company, which makes and distributes medical and surgical products such as needles, syringes and disposal units, expects its 2026 adjusted profit per share to be between $12.52 and $12.72. That compares with its previous forecast of $12.35 to $12.65 per share.
Polen also said the company expects to mitigate cost pressures this year from higher oil and resin prices linked to the Middle East conflict through measures including pricing actions.
Resins and molded plastics, used to make syringes and catheters, account for about 5% of cost of goods sold, he said.
The company expects oil prices to remain high into next year and plans to offset the impact through diversified resin sourcing and further pricing actions.
It posted an adjusted profit of $2.90 per share for the quarter ended March 31, topping analysts’ estimate of $2.77, according to data compiled by LSEG.
Separately, the company appointed Vitor Roque as its chief financial officer. Roque, a Becton Dickinson veteran for more than 25 years, was serving as its interim CFO since December and oversaw key events including completing the separation of its biosciences and diagnostics business.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shilpi Majumdar)
Comments