Back to top

Image: Bigstock

Becton, Dickinson and Company (BDX) Up 3.8% Since Earnings Report: Can It Continue?

Read MoreHide Full Article

It has been about a month since the last earnings report for Becton, Dickinson and Company (BDX - Free Report) . Shares have added about 3.8% in that time frame, underperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Recent Earnings

Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, reported first-quarter fiscal 2017 earnings of $2.33 per share, which beat the Zacks Consensus Estimate by 22 cents and increased from $1.96 posted in the year-ago quarter.

At comparable currency-neutral basis, revenues fell 2.1% to $2.92 billion. However, this was higher than the Zacks Consensus Estimate of $2.85 billion.

Quarter Details

BD Medical revenues grew 4.4% year over year to almost $1.96 billion. The upside came from strong performance by the Pharmaceutical Systems and Medication Management Solutions units. Results were driven by the timing of customer orders and capital placement.

BD Lifesciences revenues increased 2.7% from the year-ago quarter to $958 million. The upside came from improvement in Diagnostic Systems and Preanalytical Systems units.

Geographically, on a reported basis, U.S. revenues decreased 3.6% to roughly $1.63 billion, while International revenues were flat at $1.29 billion. On a comparable basis, adjusted U.S. revenues increased 5.5%. International revenues increased 6.8% on a currency-neutral basis in the reported quarter.

Guidance

For fiscal 2017, on a comparable and currency-neutral basis, revenues are anticipated to increase approximately 4.5% to 5.0%.

Meanwhile, adjusted earnings (on a currency-neutral basis) are expected in the range of $9.70 to $9.80, reflecting year-over-year growth of 13.0% to 14.0%. However, after including the estimated unfavorable impact from foreign currency, the company expects adjusted diluted earnings per share between $9.35 and $9.45, representing growth of approximately 9.0% to 10.0%.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Becton, Dickinson and Company's stock has a nice Growth Score of 'B', though it is lagging a bit on the momentum front with a 'C'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.

Zacks' style scores indicate that the company's stock is more suitable growth investors than value and momentum.

Outlook

The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Becton, Dickinson and Company (BDX) - free report >>

Published in