Medical device maker Becton Dickinson cuts 2025 profit forecast on potential tariff hit

(Reuters) -Medical device maker Becton Dickinson (NYSE:BDX) lowered its annual profit forecast on Thursday, in anticipation of a potential hit from U.S. President Donald Trump’s tariffs, sending its shares down 5% in premarket trading.

The manufacturer and distributor of medical and surgical products also said it intends to invest $2.5 billion in U.S. manufacturing capacity over the next 5 years.

"The estimated tariff impact is based on information currently available and tariff programs announced as of April 30, not including announced tariff programs that are delayed or threatened," said Becton.

CEO Thomas Pelon said in a conference call in February the company’s largest manufacturing footprint is in the U.S., followed by Mexico, Europe and then Asia.

Larger medical device peer Boston Scientific (NYSE:BSX) last week warned of a tariff impact of about $200 million in 2025 from the current schedule of expected tariffs.

Becton Dickinson reported a total sales for the quarter of $5.27 billion, missing the Wall Street estimate of $5.35 billion, according to data compiled by LSEG.

"Investors were prepared for a softer quarter, but we think this came in worse than expectations," said J.P.Morgan analyst Robbie Marcus.

The New Jersey-based company expects its 2025 profit per share to be between $14.06 and $14.34, including an estimated 25-cent-per-share tariff hit, compared with the previous forecast of $14.30 to $14.60.

Becton, however, raised the lower end of its 2025 revenue forecast to $21.8 billion from $21.7 billion previously, maintaining the upper end at $21.9 billion, as it expects to benefit from a weaker dollar.

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The company reported a profit of $3.35 per share on an adjusted basis for the quarter ended on March 31, compared with the analysts’ estimate of $3.28 per share.

Sales from its medical unit, which makes devices to administer drugs, rose 12.7% to $2.76 billion. Analysts on average estimated $2.75 billion.

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