Becton, Dickinson and Company
) is set to report its second-quarter fiscal 2014 earnings
results on May 1, 2014. In the last reported quarter, the company
had posted a 10.08% positive surprise. Let's see how things are
shaping up for this announcement.
Factors at Play
In the last reported fiscal 2014-first-quarter, Becton,
Dickinson reported adjusted earnings of $1.42 per share, beating
the Zacks Consensus Estimate by 13 cents and the prior-year
earnings per share by 11.9%. In fact, the company has delivered
positive surprises in all of its last 4 quarters, with an average
beat of 7.93%.
In the last reported quarter, Becton, Dickinson's revenues
increased 6.7% year over year to $2,015 million. The improvement
in the top line was the primary driving force behind the
company's better-than-expected earnings growth. Yet, at the same
time, the company experienced negative gross margin due to
impacts from currency, raw materials and startup costs.
Segment wise, Becton, Dickinson delivered growth in all of its
three segments in the quarter, with strong growth particularly in
Medical and continued improvements in Biosciences.
For fiscal 2014, Becton, Dickinson continues to expect revenue
growth in the range of 4.0 to 5.0%, both in reported and constant
currency. The company also anticipates adjusted earnings per
share between $6.19 and $6.22 for the year (compared with the
prior range of $6.16 to $6.22), reflecting year-over-year growth
of 6.5-7.0% over fiscal 2013. The current Zacks Consensus
Estimate of $6.23 lies above the guided range.
In constant currency, management expects adjusted earnings per
share to increase 9.5-10% in fiscal 2014, excluding the
incremental impact of the medical device tax.
Our proven model does not conclusively show that Becton,
Dickinson is likely to beat earnings this quarter. That is
because a stock needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
: Becton, Dickinson has a negative Zacks ESP. That is
because the Most Accurate estimate stands at $1.49 while the
Zacks Consensus Estimate is higher at $1.50. That leads to a
difference of -0.67%.
: Becton, Dickinson's Zacks Rank #3 (Hold) when combined with a
negative ESP makes surprise prediction difficult. We caution
against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks)
going into the earnings announcement, especially when the company
is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Myriad Genetics Inc.
), earnings ESP of +10.87% and a Zacks Rank #1 (Strong Buy).
), earnings ESP of +50.00% and a Zacks Rank #2 (Buy).
Cardinal Health, Inc.
), earnings ESP of +1.00% and Zacks Rank #2 (Buy).
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BECTON DICKINSO (BDX): Free Stock Analysis
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