Becton Dickinson and Company (BDX Quick QuoteBDX - Free Report) , popularly known as BD, is scheduled to report third-quarter fiscal 2021 results on Aug 5, before market opens.

In the last-reported quarter, the company’s earnings of $3.19 surpassed the Zacks Consensus Estimate by 4.9%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 17.19%, on average.

Let’s see how things have shaped up prior to this announcement.

Factors to Note

BD Life Sciences

BD, in May, announced the U.S. launch of a Urine Culture Application for use with the BD Kiestra lab automation incubation and imaging system. The application is expected to change the way microbiology labs approach urine culture analysis. This is likely to have considerably contributed to the fiscal third-quarter revenues of the company.

Over the past few months, BD has been receiving a slew of regulatory approvals for its products. The company, in May, announced that the industry's first self-collection claim for human papillomavirus (“HPV”) screening has been CE marked. The new claim enables laboratories and facilities to process self-collected samples via a BD diluent tube using the BD Onclarity HPV Assay on either the BD Viper LT or the BD COR System.

BD, in April, received the FDA’s Emergency Use Authorization (“EUA”) for its rapid antigen test to be used for SARS-CoV-2 screening through serial testing of asymptomatic individuals. In March, the company received an EUA for a new rapid antigen test that can detect SARS-CoV-2, influenza A and influenza B in a single test. Robust customer adoption of these products, along with the company’s new molecular diagnostic test for both SARS-CoV-2 and Influenza A+B that can provide results in a few hours (received EUA in February), are expected to have significantly pushed up the company’s fiscal third-quarter revenues.

Becton, Dickinson and Company Price and EPS Surprise

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The company has entered into a few collaborations over the past few months, which are also probable contributors to its quarterly revenues. In April, BD, along with CerTest Biotec, announced that the VIASURE SARS-CoV-2 (N1 + N2) Real Time PCR (polymerase chain reaction) Detection Kit for the BD MAX Molecular Diagnostic System can now be run on saliva specimens. The same month, BD partnered with USA Track & Field (“USATF”) to provide rapid COVID-19 testing for USATF athletes to help them get back to competition safely via the use of the BD Veritor Plus system.

Adoption of the at-home rapid test for SARS-CoV-2 using a BD antigen test and the Scanwell Health mobile app (following BD’s tie up with Scanwell Health in February) is likely to have continued in the to-be-reported quarter as well. These developments are expected to have significantly driven the fiscal third-quarter top line of the company.

The Zacks Consensus Estimate for fiscal third-quarter BD Life Sciences’ total integrated diagnostic solutions revenues is pegged at $1.03 billion, suggesting a surge of 44.8% from the year-ago quarter’s reported figure.

BD Interventional

BD, in June, announced receipt of the FDA’s 510(k) clearance for its PeritX Peritoneal Catheter System. In May, the company announced the availability of BD Surgiphor Sterile Wound Irrigation System, the first and only ready-to-use aqueous povidone-iodine (PVP-I) irrigation solution that mechanically loosens and removes wound debris. Strong adoption of these products is expected to contribute significantly to the company’s revenues in the to-be-reported quarter.

The Zacks Consensus Estimate for fiscal third-quarter BD Interventional revenues is pegged at $1 billion, suggesting an improvement of 28.3% from the year-ago quarter’s reported figure.

Other Factors to Note

BD, in April, received the FDA’s clearance for the Pristine Long-Term Hemodialysis Catheter, a new hemodialysis catheter with a unique side-hole-free symmetric Y-Tip distal lumen design. Per BD’s last update, the Pristine Catheter was to be available in the United States from May 2021. This is expected to drive investors’ optimism on the stock.

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 the Medication Delivery Solutions and Pharmaceutical Systems business units.

However, BD anticipates the to-be-reported quarter’s results to reflect the impact of foreign exchange headwinds.

The Estimate Picture

For third-quarter fiscal 2021, the Zacks Consensus Estimate of $4.53 billion for total revenues implies an improvement of 17.4% from the prior-year quarter’s reported figure.

The consensus estimate for earnings per share is pegged at $2.46, indicating an uptick of 11.8% from the prior-year period’s reported number.

What Our Model Suggests

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:

Earnings ESP: BD has an Earnings ESP of -0.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks Worth a Look

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

Henry Schein, Inc. (HSIC Quick QuoteHSIC - Free Report) has an Earnings ESP of +0.45% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Illumina, Inc. (ILMN Quick QuoteILMN - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank of 2, at present.

Ironwood Pharmaceuticals, Inc. (IRWD Quick QuoteIRWD - Free Report) has an Earnings ESP of +11.11% and is a Zacks #2 Ranked stock.