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Reiterate Becton Dickinson at Neutral - Analyst Blog

By: Zacks.com
Posted: 5/7/2013 2:22:00 PM
Referenced Stocks: ARAY;BDX;HTWR;ISRG

On May 6, we retained Becton, Dickinson and Company ( BDX ) at Neutral based on the performance of the company in fiscal second quarter 2013.

Why the Retention?

On May 2, Becton Dickinson announced results for the reported quarter. The company reported adjusted earnings per share from continuing operations of $1.44, beating the Zacks Consensus Estimate of $1.35 per share.

Becton Dickinson recorded second-quarter revenues of $2,000.4 million, up 3.7% (up 4.1% in constant currency) year over year, sailing past the Zacks Consensus Estimate of $1,986 million.

On a geographic basis, domestic revenues (contributing 41.2% in the second quarter) inched up 0.3% year over year to $823.6 million while overseas revenues increased 6.2% (up 6.9% in constant currency) to $1,176.8 million.

Domestic revenues were negatively affected by the timing of orders while international revenues were boosted by growth in the emerging nations and robust growth of safety engineered products. Revenues from emerging markets accounted for about 23% of sales in the second quarter of fiscal 2013 (growing at 13% in constant currency year over year).

In March 2013, Becton Dickinson took over Cato Software Solutions, a provider of composite medicinal safety offerings for pharmaceutical medical preparations. Cato lays out an automated system to cut down medication mistakes.   

Following the release of the fiscal second quarter results, the Zacks Consensus Estimate for fiscal 2013 has inched up (over the last 7 days) by 2 cents to $5.73. The Zacks Consensus Estimate for fiscal 2014 has remained stagnant at $6.23 during the same timeframe.

Med-Tech Stocks That Warrant a Look

The stock carries a Zacks Rank #3 (Hold). Accuray Incorporated ( ARAY ), Heartware International Inc. ( HTWR ) and Intuitive Surgical, Inc. ( ISRG ) each carry a Zacks Rank #2 (Buy) and are expected to do well.



ACCURAY INC (ARAY): Free Stock Analysis Report

BECTON DICKINSO (BDX): Free Stock Analysis Report

HEARTWARE INTL (HTWR): Free Stock Analysis Report

INTUITIVE SURG (ISRG): Free Stock Analysis Report

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