By Rob Curran

Becton Dickinson's fiscal second-quarter earnings fell on higher costs, and the maker of catheters and other devices warned that tariffs would likely take a toll on profits this year even as it raised the lower end of its revenue projection.

For the quarter ended March 31, the medical-device maker posted net income of $308 million, or $1.07 a share, down from $537 million, or $1.85 a share, a year earlier.

Adjusted earnings, which strip out certain one-time items, were $3.35 a share, topping the mean analyst estimate of $3.28 a share, as per FactSet.

The Franklin Lakes, N.J., company's second quarter revenue rose 4.5% to $5.27 billion, short of the average Wall Street target of $5.35 billion, according to FactSet.

Revenue growth was overshadowed by an increase in cost of products sold, which rose 10% to $3.02 billion.

For fiscal year 2025, Becton outlined two scenarios, one including the estimated impact of tariffs, and the other excluding the anticipated duties.

Excluding tariffs, the reiterated its prior projection of adjusted earnings in a range between $14.30 and $14.60 a share for the fiscal year ending in September.

Currently, Becton is anticipating a 25-cents-a-share hit from tariffs, which would reduce its estimated adjusted earnings to a range between $14.06 and $14.34 a share, still higher than a year earlier. That's based on tariff programs and available information as of April 30.

Bectron raised the lower end of its revenue projection, and now anticipates fiscal 2025 revenue of $21.8 billion-to-$21.9 billion, up from a prior estimate of $21.7 billion-to-$21.9 billion.

"International trade policies, trade restrictions and tariffs are rapidly evolving and there can be no assurance as to how the landscape may change and what the ultimate impact on our guidance and results of operations will be," Becton warned.

Becton plans to invest $2.5 billion in U.S. manufacturing operations. Several major multinational corporations have increased factory capacity in the U.S., rearranging supply chains due to the Trump administration's tariff and "America First" policies. Becton cited a commitment to the resilience of the U.S. health-care system in its decision.

Last year, Becton acquired Edward Lifesciences' critical-care unit, which makes heart monitors and other equipment, for $4.2 billion.

Write to Rob Curran at rob.curran@wsj.com

(END) Dow Jones Newswires

May 01, 2025 07:03 ET (11:03 GMT)

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