Markets
BDX

Becton, Dickinson (BDX) Down 1.3% Since Last Earnings Report

A generic image of a pen on a chart
Credit: Shutterstock photo

A month has gone by since the last earnings report for Becton, Dickinson and CompanyBDX . Shares have lost about 1.3% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is BDX due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Recent Earnings

Becton, Dickinson and Company, popularly known as BD, reported first-quarter fiscal 2018 earnings of $2.48 per share, which beat the Zacks Consensus Estimate of $2.40. Adjusted earnings increased 3.9% at constant currency (cc) on a year-over-year basis.

The company reported revenues of $3.08 billion, beating the Zacks Consensus Estimate of $3.05 billion. This represents an increase of 5.4% from the prior-year quarter, or 3.7% at cc.

Segmental Analysis

BD Medical

The BD Medical segment generated revenues of $2.04 billion, up 1.9% at cc on a year-over-year basis.

The segment's result reflects an adverse impact from the change in the U.S. dispensing business model. However, BD Medical witnessed strong performance in the Medication and Procedural Solutions as well as the Diabetes Care and Pharmaceutical Systems units.

Medication and Procedural Solutions registered revenues of $925 million in the BD Medical segment, up 5% year over year at cc.

Diabetes Care reported revenues of $277 million, up 2.2% at cc on a year-over-year basis.

Pharmaceutical Systems reported revenues of $245 million, up 3.7% at cc on a year-over-year basis.

However, Medication Management Solutions reported revenues of $587 million, down 3.4% at cc on a year-over-year basis.

BD Life Sciences

The BD Life Sciences segment generated revenues of $1.05 billion, up 7.3% at cc from the year-ago quarter. The segment's performance indicates strong numbers across the Biosciences, Diagnostic Systems and Preanalytical Systems units.

Preanalytical Systems recorded revenues of $375 million in the first quarter, up 4% at cc on a year-over-year basis.

Diagnostic Systems reported revenues of $381 million, up 12.5% year over year at cc.

Meanwhile, the Biosciences unit registered revenues of $289 million, up 5.3% at cc.

Geographic Results

United States

U.S. revenues were roughly $1.66 billion, up 1.6% on a year-over-year basis.

Within the BD Medical segment, growth in the Medication and Procedural Solutions and Diabetes Care units was offset by declines in the Medication Management Solutions and Pharmaceutical Systems units.

BD Life Sciences segment results within the United States were primarily driven by Diagnostic Systems and Preanalytical Systems units in the reported quarter.

International Revenues

International revenues rose 6.3% to $1.42 billion at cc.

Both BD Medical and BD Life Sciences segment registered strong growth outside the United States. Within the BD Medical segment, growth was driven by strength in the Pharmaceutical Systems unit, aided by impressive results in the Medication and Procedural Solutions and Diabetes Care units.

Guidance

Including the accretion from C. R. Bard acquisition, BD expects fiscal 2018 revenues to increase in the range of 30-31% on a reported basis. However, revenues are expected to grow in the range of 4.5-5.5%.

Notably, revenues are likely to be affected by the change in the U.S. dispensing business model.

The company expects adjusted earnings per share in the range of $10.85-$11.00, up from the previous range of $10.55-$10.65. The current range indicates growth of approximately 15% to 16% on a reported basis, or approximately 12% at cc.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter compared to two lower.

Becton, Dickinson and Company Price and Consensus

Becton, Dickinson and Company Price and Consensus | Becton, Dickinson and Company Quote

VGM Scores

At this time, BDX has a poor Growth Score of F, however its Momentum is doing a lot better with an A. The stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregte VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate that the stock is more suitable for momentum investors than value investors.

Outlook

Estimates have been broadly trending upward for the stock and the magnitude of these revisions looks promising. Notably, BDX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Becton, Dickinson and Company (BDX): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

BDX

Other Topics

Earnings

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More