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What's in Store for Becton, Dickinson (BDX) in Q1 Earnings?
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Becton, Dickinson and Company’s (BDX - Free Report) first-quarter fiscal 2017 results, scheduled for release on Feb 6, are expected to show sluggishness in BD Medical — one of the major revenue components. While this can majorly dampen earnings in the first quarter, an expected improvement in revenues in other segments will help the company generate solid results.
The Zacks Consensus Estimate for BD Medical revenues is pegged at $2.03 billion for the first quarter. This indicates a decline of 3.9% from the year-ago quarter.
Notably, Becton, Dickinson, also known as BD, delivered positive earnings surprises in the past four quarters, the average being 3.8%. Like the previous quarter, management expects strong numbers in the Biosciences, Diagnostic Systems and Preanalytical Systems units.
Major Factors at Play
Dull Prospects in BD Life Sciences: The Zacks Consensus Estimate for revenues in the BD Life Sciences segment is pegged at $1.01 billion, down 3.5% year-over-year. In fact, the Biosciences and Diagnostics segments are expected to decline 8.3% and 1.7% respectively on a year-over-year basis. Lower reimbursements for medical products and services have been imposing a downward pressure on the prices of products. Further, longer sales cycles and slower adoption of new technologies are also expected to affect BD’s top line.
Foreign Exchange Woes: BD generates more than half of its revenues from international operations (more than 50% in fiscal 2017), which is affected by fluctuations in foreign currency exchange rates. Notably, domestic manufacturers such as BD are being hurt by strong U.S. dollar, which has benefited from more upbeat economic prospects compared with the rest of the world. Currency volatility will continue to be a headwind in first-quarter of fiscal 2018.
Emerging Markets Hold Promise: Emerging markets continue to be a key growth driver for BD. The company’s momentum in China and the emerging markets have been already reflected in the previously-reported quarters. We expect the trend to continue in the to-be-reported quarter. In this regard, BD’s strategic transformation of the U.S. dispensing business model has been successfully implemented. Further, the company’s strategy for end-to-end medication management is gaining prominence.
Northward Estimate Revisions: The Zacks Consensus Estimate for revenues in the first quarter is $3.04 billion, which grew 4.2% year over year. Further, the Zacks Consensus Estimate for earnings in the first quarter is pegged at $10.87, which improved 14.7% year over year.
However, BD does not have the right combination of two main ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat. Here is what our quantitative model predicts.
Zacks ESP: The Earnings ESP for BD is -0.50%, as the Most Accurate estimate is $2.37 and the Zacks Consensus Estimate is pegged at $2.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BD carries a Zacks Rank #2 (Buy). However, we also need a positive ESP to be confident of an earnings beat this season.
Stocks to Consider
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Luminex has an Earnings ESP of +14.29% and a Zacks Rank #3.
The Cooper Companies (COO - Free Report) has an Earnings ESP of +10.75% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
What's in Store for Becton, Dickinson (BDX) in Q1 Earnings?
Becton, Dickinson and Company’s (BDX - Free Report) first-quarter fiscal 2017 results, scheduled for release on Feb 6, are expected to show sluggishness in BD Medical — one of the major revenue components. While this can majorly dampen earnings in the first quarter, an expected improvement in revenues in other segments will help the company generate solid results.
The Zacks Consensus Estimate for BD Medical revenues is pegged at $2.03 billion for the first quarter. This indicates a decline of 3.9% from the year-ago quarter.
Notably, Becton, Dickinson, also known as BD, delivered positive earnings surprises in the past four quarters, the average being 3.8%. Like the previous quarter, management expects strong numbers in the Biosciences, Diagnostic Systems and Preanalytical Systems units.
Major Factors at Play
Dull Prospects in BD Life Sciences: The Zacks Consensus Estimate for revenues in the BD Life Sciences segment is pegged at $1.01 billion, down 3.5% year-over-year. In fact, the Biosciences and Diagnostics segments are expected to decline 8.3% and 1.7% respectively on a year-over-year basis. Lower reimbursements for medical products and services have been imposing a downward pressure on the prices of products. Further, longer sales cycles and slower adoption of new technologies are also expected to affect BD’s top line.
Foreign Exchange Woes: BD generates more than half of its revenues from international operations (more than 50% in fiscal 2017), which is affected by fluctuations in foreign currency exchange rates. Notably, domestic manufacturers such as BD are being hurt by strong U.S. dollar, which has benefited from more upbeat economic prospects compared with the rest of the world. Currency volatility will continue to be a headwind in first-quarter of fiscal 2018.
Emerging Markets Hold Promise: Emerging markets continue to be a key growth driver for BD. The company’s momentum in China and the emerging markets have been already reflected in the previously-reported quarters. We expect the trend to continue in the to-be-reported quarter. In this regard, BD’s strategic transformation of the U.S. dispensing business model has been successfully implemented. Further, the company’s strategy for end-to-end medication management is gaining prominence.
Northward Estimate Revisions: The Zacks Consensus Estimate for revenues in the first quarter is $3.04 billion, which grew 4.2% year over year. Further, the Zacks Consensus Estimate for earnings in the first quarter is pegged at $10.87, which improved 14.7% year over year.
Becton, Dickinson and Company Price and Consensus
Becton, Dickinson and Company Price and Consensus | Becton, Dickinson and Company Quote
However, BD does not have the right combination of two main ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — for increasing the odds of an earnings beat. Here is what our quantitative model predicts.
Zacks ESP: The Earnings ESP for BD is -0.50%, as the Most Accurate estimate is $2.37 and the Zacks Consensus Estimate is pegged at $2.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: BD carries a Zacks Rank #2 (Buy). However, we also need a positive ESP to be confident of an earnings beat this season.
Stocks to Consider
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Bio-Rad Laboratories (BIO - Free Report) has an Earnings ESP of +4.45% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank Stocks Here.
Luminex has an Earnings ESP of +14.29% and a Zacks Rank #3.
The Cooper Companies (COO - Free Report) has an Earnings ESP of +10.75% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>