Back to top

Reiterate Becton Dickinson at Neutral

Read MoreHide Full Article

On May 6, we retained Becton, Dickinson and Company (BDX - Free Report) at Neutral based on the performance of the company in fiscal second quarter 2013.

Why the Retention?

On May 2, Becton Dickinson announced results for the reported quarter. The company reported adjusted earnings per share from continuing operations of $1.44, beating the Zacks Consensus Estimate of $1.35 per share.

Becton Dickinson recorded second-quarter revenues of $2,000.4 million, up 3.7% (up 4.1% in constant currency) year over year, sailing past the Zacks Consensus Estimate of $1,986 million.

On a geographic basis, domestic revenues (contributing 41.2% in the second quarter) inched up 0.3% year over year to $823.6 million while overseas revenues increased 6.2% (up 6.9% in constant currency) to $1,176.8 million.

Domestic revenues were negatively affected by the timing of orders while international revenues were boosted by growth in the emerging nations and robust growth of safety engineered products. Revenues from emerging markets accounted for about 23% of sales in the second quarter of fiscal 2013 (growing at 13% in constant currency year over year).

In March 2013, Becton Dickinson took over Cato Software Solutions, a provider of composite medicinal safety offerings for pharmaceutical medical preparations. Cato lays out an automated system to cut down medication mistakes.   

Following the release of the fiscal second quarter results, the Zacks Consensus Estimate for fiscal 2013 has inched up (over the last 7 days) by 2 cents to $5.73. The Zacks Consensus Estimate for fiscal 2014 has remained stagnant at $6.23 during the same timeframe.

Med-Tech Stocks That Warrant a Look

The stock carries a Zacks Rank #3 (Hold). Accuray Incorporated (ARAY - Free Report) , Heartware International Inc. and Intuitive Surgical, Inc. (ISRG - Free Report) each carry a Zacks Rank #2 (Buy) and are expected to do well.

In-Depth Zacks Research for the Tickers Above

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

Intuitive Surgical, Inc. (ISRG) - free report >>

Accuray Incorporated (ARAY) - free report >>

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

More from Zacks Analyst Blog

You May Like