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Why Is Becton, Dickinson (BDX) Up 3% Since the Last Earnings Report?
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It has been about a month since the last earnings report for Becton, Dickinson and Company (BDX - Free Report) . Shares have added about 3% in that time frame, outperforming 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 catalysts.
Becton, Dickinson Q2 Earnings Beat, Increase Y/Y
Becton, Dickinson and Company, popularly known as BD, reported second-quarter fiscal 2017 earnings of $2.30 per share, which beat the Zacks Consensus Estimate of $2.23 and increased 5.5% on a year-over-year basis.
Interestingly, BD has posted positive earnings surprises in the past four quarters, at an average of 6.9%.
Getting back to the quarter, BD registered revenues of $2.969 billion, beating the Zacks Consensus Estimate of $2.921 billion. Revenues fell 3.2% on a year-over-year basis. However, on a comparable, currency-neutral basis, revenues increased 5.2% in the second quarter.
Segment Details
BD Medical segment: Revenues at the segment decreased 6.8% year over year to $1.987 billion owing to the divestiture of the Respiratory Solutions business in Oct 2016.
However, the segment witnessed strong performance by the Pharmaceutical Systems and Medication Management Solutions units. Results were partially affected by the timing of customer orders and capital placement.
Of the major highlights at the BD Medical segment, the company is expected to make notable changes in its U.S. dispensing business model within the Medication Management Solutions unit.
BD Life Sciences segment: Revenues at the segment increased 4.9% from the year-ago quarter to $982 million. This marked an increase of 5.8% on a currency-neutral basis. The upside came from improvement in Diagnostic Systems and Preanalytical Systems units.
However, BD Life Sciences segment witnessed a decrease in revenues at the Biosciences unit.
Geographically, on a reported basis, U.S. revenues decreased 5.4% to roughly $1.627 billion, while International revenues were flat at $1.342 billion. On a comparable basis, adjusted U.S. revenues increased 4%. International revenues rose 6.5% on a currency-neutral basis in the reported quarter.
Guidance
The company maintained its fiscal 2017 revenue and adjusted earnings guidance.
For fiscal 2017, on a comparable and currency-neutral basis, revenues are anticipated to increase approximately 4.5% to 5.0%. Notably, this excludes Respiratory Solutions and other divestitures that closed in fiscal 2016.
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% to 10%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been six revisions lower for the current quarter.
At this time, the stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Becton, Dickinson (BDX) Up 3% Since the Last Earnings Report?
It has been about a month since the last earnings report for Becton, Dickinson and Company (BDX - Free Report) . Shares have added about 3% in that time frame, outperforming 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 catalysts.
Becton, Dickinson Q2 Earnings Beat, Increase Y/Y
Becton, Dickinson and Company, popularly known as BD, reported second-quarter fiscal 2017 earnings of $2.30 per share, which beat the Zacks Consensus Estimate of $2.23 and increased 5.5% on a year-over-year basis.
Interestingly, BD has posted positive earnings surprises in the past four quarters, at an average of 6.9%.
Getting back to the quarter, BD registered revenues of $2.969 billion, beating the Zacks Consensus Estimate of $2.921 billion. Revenues fell 3.2% on a year-over-year basis. However, on a comparable, currency-neutral basis, revenues increased 5.2% in the second quarter.
Segment Details
BD Medical segment: Revenues at the segment decreased 6.8% year over year to $1.987 billion owing to the divestiture of the Respiratory Solutions business in Oct 2016.
However, the segment witnessed strong performance by the Pharmaceutical Systems and Medication Management Solutions units. Results were partially affected by the timing of customer orders and capital placement.
Of the major highlights at the BD Medical segment, the company is expected to make notable changes in its U.S. dispensing business model within the Medication Management Solutions unit.
BD Life Sciences segment: Revenues at the segment increased 4.9% from the year-ago quarter to $982 million. This marked an increase of 5.8% on a currency-neutral basis. The upside came from improvement in Diagnostic Systems and Preanalytical Systems units.
However, BD Life Sciences segment witnessed a decrease in revenues at the Biosciences unit.
Geographically, on a reported basis, U.S. revenues decreased 5.4% to roughly $1.627 billion, while International revenues were flat at $1.342 billion. On a comparable basis, adjusted U.S. revenues increased 4%. International revenues rose 6.5% on a currency-neutral basis in the reported quarter.
Guidance
The company maintained its fiscal 2017 revenue and adjusted earnings guidance.
For fiscal 2017, on a comparable and currency-neutral basis, revenues are anticipated to increase approximately 4.5% to 5.0%. Notably, this excludes Respiratory Solutions and other divestitures that closed in fiscal 2016.
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% to 10%.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been six revisions lower for the current quarter.
Becton, Dickinson and Company Price and Consensus
Becton, Dickinson and Company Price and Consensus | Becton, Dickinson and Company Quote
VGM Scores
At this time, the stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.