Becton Dickinson (NYSE:BDX) shares are down more than 10% today after the medtech giant lowered its guidance for the year amid ongoing problems with its Alaris infusion pump.
The Franklin Lakes, N.J.-based company posted profits of $240 million, or 87¢ per share, on sales of $4.23 billion for the three months ended Dec. 31, 2019, for a 57.3% bottom-line slide on sales growth of 1.6%.
Adjusted to exclude one-time items, earnings per share were $2.65, 2¢ ahead of Wall Street, where analysts were looking for sales of $4.18 billion.
A large factor in Becton Dickinson’s Q1 earnings report was the ongoing issues with the company’s Alaris infusion pump. The company said it plans to partner with the FDA and existing customers to work on a software remediation plan for the Alaris system, but in the meantime, it will be lowering its full fiscal year revenue and EPS guidance.
“In the first quarter, the BD team delivered solid results, in line with our expectations,” Becton Dickinson CEO & president Tom Polen said in a news release.
“As we look ahead to the balance of the fiscal year, we are focused on the resolution of the Alaris pump matter. We stand behind the safety of the Alaris System … Now, we need to take the necessary steps to meet the FDA’s expectations with respect to the Alaris System,” Polen said.
Becton Dickinson said it now expects to log adjusted EPS of $11.90 and $12.10 in 2020, and said its sales guidance will be between a 1.5% to 2.5% increase from 2019.
BDX shares were down -11.4% at $253.29 per share in mid-morning trading today.
This story has been updated to remove the incorrect labeling of the Alaris issue as a “cybersecurity” issue.
