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What's in Store for Becton, Dickinson's (BDX) Q3 Earnings?

Becton, Dickinson and Company BDX, popularly known as BD, is scheduled to release third-quarter fiscal 2020 results on Aug 6, before the opening bell.

BD delivered an earnings surprise of 11.8% in the last reported quarter. It beat estimates in each of the trailing four quarters, the average surprise being 3.5%.

Q3 Estimates

For the quarter to be reported, the Zacks Consensus Estimate for BD’s adjusted earnings per share (EPS) is pegged at $2.04, suggesting a decline of 33.8% from the prior-year quarter. The same for revenues stands at $3.92 billion, indicating a decrease of 9.8% from the year-ago reported quarter.

BD Life Sciences: A Key Catalyst

BD Life Sciences’ fiscal third-quarter performance is likely to reflect strong year-over-year growth in revenues from assays, which are used to detect a broad range of infectious diseases, healthcare-associated infections and cancer.

Notably, strong performance by the Diagnostic Systems and Biosciences sub-units may have contributed to the to-be-reported quarter’s performance.

Growth in licensing revenues and demand for instruments and reagents might have benefited the Bioscience sub-unit’s performance.

Becton, Dickinson and Company Price and EPS Surprise

Becton, Dickinson and Company Price and EPS Surprise

Becton, Dickinson and Company price-eps-surprise | Becton, Dickinson and Company Quote

It is important to mention here that BD has been focusing on fighting the coronavirus pandemic.

In April, the company received Emergency Use Authorization (EUA) from the FDA for an additional molecular diagnostic test for COVID-19 that can present results within a time frame of two to three hours. Notably, the test has also been CE marked to the In Vitro Diagnostics medical devices (IVD) Directive (98/79/EC). The test offers additional testing capacity for COVID-19 in the United States and other countries that consider the CE Mark to test patients and health care workers.

The segment is likely to have received a boost from the introduction of the test, which in turn might get reflected in the fiscal third-quarter results.

Further, during the fiscal second quarter, BD closed the acquisition of NAT Diagnostics, an early-stage company with a very innovative platform in the fast-growing molecular point-of-care market. This buyout will strengthen BD's presence in the molecular point-of-care testing market. This acquisition may have favored the company’s fiscal third-quarter performance.

Other Factors to Note

Strong performance by the BD Interventional arm might get reflected in the company’s fiscal third-quarter results.

The company is likely to have witnessed strong performance in peripheral intervention, which comprises WavelinQ, Covera and Venovo products.

BD expects its Critical Care business and the Arctic Sun Stat launch under its Interventional arm to have driven the segment’s fiscal third-quarter performance.

Robust product pipeline is likely to have contributed to the fiscal third-quarter performance.

However, the company anticipates fiscal third-quarter results to reflect the impact of foreign exchange headwinds.

Also, the company is likely to have witnessed fall in revenues at its BD Medical segment in the to-be-reported quarter primarily due to weakness across Medication Management Solutions and Medication Delivery Solutions units.

What the Zacks Model Unveils

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is the case here as you will see below.

Earnings ESP: BD has an Earnings ESP of +1.54%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3.

Other Stocks Worth a Look

Here are some other medical stocks worth considering as these too have the right combination of elements to post an earnings beat this quarter.

Integra LifeSciences Holdings Corporation IART has an Earnings ESP of +20.69% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals plc GWPH has an Earnings ESP of +17.38% and a Zacks Rank of 3.

Nevro Corp. NVRO has an Earnings ESP of +15.17% and a Zacks Rank of 3.

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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 Nasdaq, Inc.

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