Becton, Dickinson and Company

Becton, Dickinson and Company (BDX - Analyst Report) keeps seeing bullish forecasts on strong fundamentals as the company prepares to report early next week. Analysts are projecting earnings growth of 10.5% for the fiscal year ending September 2009 followed by growth of 10.5% more in fiscal 2010.

Company Description

Becton, Dickinson and Company is a medical technology company that develops, manufactures and sells medical devices, instrument systems and reagents. BD is focused on improving drug delivery, enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing research, discovery and production of new drugs and vaccines.

Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs approximately 28,000 people in approximately 50 countries throughout the world. The company serves healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public.

Solid Fundamentals

Becton, Dickinson and Company’s return on equity (ROE) of 24% tops the industry’s average of 20%. The company’s net profit margin of 16% is well above the industry average of 7%.

The company continues to see bullish forecasts from Wall Street. Analysts are projecting earnings growth of 10.5% for the fiscal year ending September 2009 followed by growth of 10.5% more in fiscal 2010.

BDX’s second-quarter report is slated for release on April 28.

A Recent Dividend

In early February, the company declared a quarterly dividend of 33 cents per share, which was paid out on March 31. The company offers an industry-leading yield of 2%.

Strong Fiscal First Quarter

In Late January, Becton, Dickinson and Company released results for its fiscal first quarter. Revenues jumped 1.6% on a year-over-year basis. Earnings per share of $1.26 came in ahead of last year’s $1.07 and topped the consensus estimate by 9%.

“BD is off to a solid start to fiscal 2009. In particular, we continue to see strength in our Biosciences and Diagnostics segments and strong sales of insulin delivery products,” said Edward J. Ludwig, Chairman and Chief Executive Officer. “In addition, our strong earnings per share growth has given us the confidence to raise guidance for fiscal 2009.”

The company expects 9% to 11% earnings per share growth for the full fiscal year of 2009, versus t he prior year. Wall Street sees 10% growth.