Becton, Dickinson and Company
) reached a new 52-week high of $117.26 on Mar 31 eventually
closing at $117.08 on the same day. In fact, shares of this
NJ-based manufacturer and developer of medical instruments and
supplies have been gaining momentum since it reported strong
first-quarter fiscal 2014 (ended Dec 31, 2013) results on Feb 4.
The company's share price has recorded a healthy return of around
25% over a year. Its long-term estimated EPS growth rate is
pegged at 9.1%.
Strong First-Quarter Performance
Becton, Dickinson, a Zacks Rank #2 (Buy) stock, reported
impressive first-quarter results, reflecting year-over-year
increases both in revenues and adjusted earnings. Adjusted
earnings per share reached $1.42 in the quarter, beating the
Zacks Consensus Estimate of $1.29 by 10.1%. Earnings also rose
5.2% year over year, better than the company's earnings
expectations for the quarter, primarily on the back of higher
Revenues were $2,015 million, up 6% year over year, beating the
Zacks Consensus Estimate by 1.8%. On a geographical basis, while
improved growth was observed in the European end-markets,
stability in growth was seen in the U.S. Factors like safety
sales, Bioscience development and the benefit of timing in
Pharmaceutical Systems contributed to strong growth, particularly
in Western Europe.
On a segment basis, worldwide revenues of BD Medical Segment
increased 8.2% year over year to $1,064 million, owing to strong
sales in the Medical Surgical Systems and Diabetes Care units,
and solid sales in the Pharmaceutical Systems unit. Likewise,
international expansion in both the Preanalytical Systems and
Diagnostics Systems business units caused revenues from the BD
Biosciences segment to increase 5.4% year over year to $279
Becton, Dickinson's research and development expenses climbed
6.4% to $126 million, reflecting the rise in investment in new
products and platforms within the Medical and Biosciences
segments. Higher investment gains on assets related to the
company's deferred compensation plan resulted in a solid 75%
increase in its interest income, which amounted to $14 million in
the first quarter.
During the first quarter, Becton, Dickinson repurchased about
$190 million of its anticipated $450 million full-year 2014 share
Subsequent to the earnings release, most of the earnings
estimates were revised upward for fiscal 2014 and 2015. Over the
last 60 days, the Zacks Consensus Estimate has risen 0.3% to
$6.23 for fiscal 2014 and 0.4% to $6.80 for fiscal 2015.
Other Stocks to Consider
Other stocks worth a look in the medical industry include
Align Technology Inc.
CR Bard Inc.
The Cooper Companies Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
BARD C R INC (BCR): Free Stock Analysis
BECTON DICKINSO (BDX): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
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