BDX Acquires Diagnostic Instruments Maker - Analyst Blog


Shares of medical technology major Becton, Dickinson and Company ( BDX ) rose 0.5% following the announcement of its acquisition of San Jose, Calif.-based diagnostic instrument manufacturer, Alverix for a price tag of $40 million.

BDX has a long-term association with the privately held company Alverix. The former has been working the latter on BD Veritor System since 2008. BD Veritor System is used for detecting viral infections like influenza, streptococcus and respiratory syncytial virus.

Currently, Becton, Dickinson's shares are hovering around a 52-week high. The last closing price of $111.08 represents a handsome one-year return of 39.4%.

BDX posted adjusted earnings per share of $1.58 for the fourth quarter of fiscal 2013, topping the Zacks Consensus Estimate of $1.47 as well as the year-ago earnings of $1.42 by 11.3%. Revenues in the quarter went up 6.8% to $2,101 million, also exceeding the Zacks Consensus Estimate of $2,045 million. In constant currency, revenues grew 7.2% in the quarter.

For fiscal 2013, adjusted earnings rose 10.8% to $5.95 per share from $5.37 per share in the prior fiscal year. Annual earnings surpassed the Zacks Consensus Estimate of $5.75. Revenues in the year rose 4.5% to $8,054 million.

For fiscal 2014, Becton Dickinson expects both reported and constant currency revenue growth in the range of 4.0 to 5.0%. BDX also anticipates adjusted earnings per share between $6.16 and $6.22 for the year, which tally with the Zacks Consensus Estimate of $6.21 and reflect year-over-year growth of 3.5% to 4.5%. The company revealed that the acquisition will not affect the fiscal year guidance.

BDX currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical/dental supplies industry include Align Technology Inc. ( ALGN ), Cardinal Health, Inc. ( CAH ), and McKesson Corporation ( MCK ). Align Technology carries a Zacks Rank #1 (Strong Buy), while both Cardinal Health and McKesson hold a Zacks Rank #2 (Buy).

ALIGN TECH INC (ALGN): Free Stock Analysis Report

BECTON DICKINSO (BDX): Free Stock Analysis Report

CARDINAL HEALTH (CAH): Free Stock Analysis Report

MCKESSON CORP (MCK): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ALGN , BDX , CAH , MCK

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