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BD (BDX) Gears Up for Q1 Earnings: What's in the Offing?

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Becton Dickenson and Company (BDX - Free Report) , popularly known as BD, is scheduled to release first-quarter fiscal 2021 results on Feb 4, before the opening bell.

BD delivered an earnings surprise of 11.6% in the last reported quarter. Its bottom line also beat estimates in each of the trailing four quarters, the average being 7.9%.

Q1 Estimates

For the quarter to be reported, the Zacks Consensus Estimate for adjusted earnings per share (EPS) is pegged at $3.07, suggesting 15.9% growth from the prior-year quarter’s reported figure. The same for revenues stands at $5.31 billion, indicating a rise of 25.6% from the year-ago period’s reported number.

BD Life Sciences: A Key Catalyst

In the fiscal first quarter, strong segmental performance at BD Life Sciences is likely to have aided 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, a solid performance by the Diagnostic Systems sub-unit might have contributed to the to-be-reported quarter’s performance.

Per the preliminary announcement, BD anticipates worldwide revenues to be $2 billion for the first fiscal quarter. This suggests a surge of 76.3% from the year-ago period’s figure on a reported basis and 74.3% on a currency-neutral basis.

In October 2020, BD received a 510(k) clearance from the FDA for its FACSLyric Flow Cytometer with the Integrated BD FACSDuet Sample Preparation System. Notably, the BD FACSDuet Sample Preparation System adds new capabilities to the BD portfolio of clinical flow cytometry solutions. It is a pre-analytical system and together with the BD FACSLyric Flow Cytometer, emerges as the first complete walkaway sample-to-answer solution for clinical labs.

Also, in the same month, management announced that the VIASURE SARS-CoV-2 (N1 + N2) Real Time PCR Detection Kit adapted for the BD MAX System attained a CE mark approval.

In September, the company received the CE mark for its rapid, point-of-care, SARS-CoV-2 antigen test for utilization on the BD Veritor Plus System. The new test substantially improves the turnaround time for COVID-19 diagnostics as it offers real-time results and helps making decisions while the patient is still onsite.

The aforementioned developments are likely to get reflected in the results for the fiscal first quarter.

 

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

 

Other Factors to Note

Sturdy performance by the BD Interventional arm might reflect on the company’s first-quarter fiscal 2021 results owing to a robust progress across Peripheral Intervention and Urology & Critical Care units.

In fact, per the preliminary release, the company anticipates worldwide revenues for the above-mentioned segment pertaining to the fiscal first quarter to be $1.1 billion. This indicates a 6% increase from the prior-year quarter’s recorded figure on a reported basis and 4.9% on a currency-neutral basis. Per the preliminary results and on a reported basis, Peripheral Intervention and Urology & Critical Care revenues grew in the high-single digits while Surgery revenues grew in low-single digits on a year-over-year basis.

Also, the company is likely to have witnessed higher revenues at its BD Medical segment in the to-be-reported quarter. This upside is expected to have been driven by a strong performance in Medication Delivery Solutions and Diabetes Care, Medication Management Solutions and Pharmaceutical Systems units. Per the preliminary announcement, the company expects worldwide revenues for the fiscal first quarter with respect to the BD Medical segment to be $2.3 billion, implying a 7.9% rise from the prior-year period’s reported figure on a reported basis and 6.6% on a currency-neutral basis.

Per the preliminary announcement, the company projects revenues of $5.3 billion for the first quarter of fiscal 2021. This indicates a 25.6% improvement from the prior-year quarter’s actual figure on a reported basis, driven by solid demand for its COVID-19 diagnostic tests and a better-than-anticipated performance across all three segments. On a currency-neutral basis, revenues are predicted to grow 24.2% from the year-ago quarter’s reported number.

Per the preliminary release and on a reported basis, BD anticipates its Medication Delivery Solutions and Diabetes Care revenues to grow in the mid-single-digits, Medication Management Solutions revenues to improve in the high-single-digits and Pharmaceutical Systems revenues to climb in double-digits from the respective year-ago quarter’s reported numbers.

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

What the Zacks Model Unveils

Our proven model predicts a beat for BD this time around. The 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, which is the case here as you will see below.

Earnings ESP: BD has an Earnings ESP of +7.46%. 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 #3, currently.

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

AmerisourceBergen Corporation (ABC - Free Report) has an Earnings ESP of +2.58% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +4.80% and is Zacks #3 Ranked, presently.

Ecolab Inc. (ECL - Free Report) has an Earnings ESP of +0.08% and is currently a #3 Ranked player.

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