Shares of Becton Dickinson (NYSE: BDX) plummeted 5.43% in the intraday trading session, after the medical technology company announced plans to separate its Biosciences and Diagnostic Solutions business, while also lowering its fiscal 2025 revenue guidance.
According to the company, the planned separation aims to enhance strategic focus and enable growth-oriented investments and capital allocation for the two businesses. After the separation, the New BD will be a pure-play medical technology company with expected fiscal 2024 revenue of approximately $17.8 billion, while the Biosciences and Diagnostic Solutions business is expected to have around $3.4 billion in revenue.
Meanwhile, Becton Dickinson lowered its fiscal 2025 revenue guidance from the previous range of $21.9 billion to $22.1 billion to a new range of $21.7 billion to $21.9 billion, which fell short of analysts' consensus estimate of $21.93 billion. However, the company raised its adjusted EPS guidance range to $14.30 to $14.60, up from the previous range of $14.25 to $14.60.