On Thursday, BD (Becton, Dickinson and Company) (NYSE:BDX) reported second-quarter sales of $5.04 billion, up 4.6% year over year, in line with the consensus.

"Second quarter performance reflects our strategy in action and the strength of our diverse portfolio," said Tom Polen, chairman, CEO and president of BD. "Our focus on BD Excellence and execution enabled strong operating margin and cash flow within the quarter. We enter the back half of fiscal 2024 with continued momentum giving us the confidence to again raise our fiscal 2024 earnings guidance as we deliver on our BD 2025 commitments."

BD Medical segment sales increased $2.5 billion, up 3.8% (+3.7% organic), BD Life Sciences sales were up $1.3 billion, up 2.2% (+2.3%), and BD Interventional sales were up 9% (+13.6%) to $1.29 billion.

Guidance: Becton, Dickinson expects 2024 sales of ~$20.1 billion-$20.3 billion versus prior guidance of $20.2 billion-$20.4 billion and the consensus of $20.3 billion.

The company raised the adjusted EPS guidance to $12.95-$13.15, up from prior guidance of $12.82-$13.06 compared to the consensus of $12.95.

William Blair remains positive about BD's long-term prospects, writing, "we remain optimistic on the outlook for BD as the company appears to be well on its way to achieving its BD 2025 commitments," including its operating margin target, which is one of the key metrics investors are focused on.

The recent increase in margins suggests potential for further improvement throughout the year, aligning with guidance and potentially reaching the 2025 target of around 25% by the end of fiscal 2024.

Achieving this could lead to a slight increase in the company's valuation multiples, considering its current trading level at around 18 times the next twelve months (NTM) earnings, slightly below its three-year average of 20 times.

William Blair rates Becton, and Dickinson shares Outperform.

Price Action: BDX shares are up 2.24% at $238.95 at the last check Thursday.