We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Becton, Dickinson (BDX) Poised for a Beat in Q4 Earnings?
Read MoreHide Full Article
Becton, Dickinson and Company (BDX - Free Report) is set to report fourth-quarter fiscal 2017 results on Nov 2.
Becton, Dickinson has an impressive track of comfortably beating estimates in each of the four trailing quarters. In the last reported quarter, it delivered a positive earnings surprise of 0.82%, taking the four-quarter average to 3.96%. Let’s take a look at how things are shaping up prior to the fourth-quarter earnings announcement.
Why a Likely Positive Surprise?
Our proven model indicates that Becton, Dickinson is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen which is the case here.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Becton, Dickinson has a Zacks Rank #2, which is favorable. The combination of a Zacks Rank #2 and a positive ESP indicates a likely positive surprise. Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing a negative estimate revision.
Becton, Dickinson's innovative product pipeline is a key catalyst in our view. A plethora of regulatory approvals in the United States and International markets are helping the company to rapidly expand its product portfolio. Management at Becton, Dickinson expects that strong demand for its Pyxis ES platform and infusion pumps to be growth drivers in the fiscal fourth quarter. Overall for fiscal 2017, revenues are anticipated to increase approximately 4.5-5.0%. The Zacks Consensus Estimate for BD Medical segment is at $2.105 billion for the fourth quarter, signifying sequential growth of 2.8%. Meanwhile, the Zacks Consensus Estimate for the Medical Surgical Systems is pegged at at $908 million, up 4.4% sequentially.
Additionally, partnerships and collaborations are providing the company a competitive edge. However, an unfavorable foreign exchange rate is anticipated to remain headwind for the rest of year. Furthermore, uncertainties associated with the possibilities of a repeal of the Affordable Care Act under President Trump add to the company’s concerns.
The company’s estimate revision trend is also encouraging. For the current quarter, five analysts moved north compared to no downward revision in the last two months. Over the last three months, the current-quarter estimates improved from $2.37 per share to $2.38. Overall for fiscal 2017, adjusted earnings (on a currency-neutral basis) are expected in the range of $9.42 to $9.47, reflecting year-over-year growth of 10%.
Stocks to Consider
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
Medpace Holdings Inc (MEDP - Free Report) has an Earnings ESP of +0.47% and carries a Zacks Rank #3.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +1.00% and carries a Zacks Rank #3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Is Becton, Dickinson (BDX) Poised for a Beat in Q4 Earnings?
Becton, Dickinson and Company (BDX - Free Report) is set to report fourth-quarter fiscal 2017 results on Nov 2.
Becton, Dickinson has an impressive track of comfortably beating estimates in each of the four trailing quarters. In the last reported quarter, it delivered a positive earnings surprise of 0.82%, taking the four-quarter average to 3.96%.
Let’s take a look at how things are shaping up prior to the fourth-quarter earnings announcement.
Why a Likely Positive Surprise?
Our proven model indicates that Becton, Dickinson is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen which is the case here.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Becton, Dickinson has a Zacks Rank #2, which is favorable. The combination of a Zacks Rank #2 and a positive ESP indicates a likely positive surprise. Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing a negative estimate revision.
Becton, Dickinson and Company Price and Consensus
Becton, Dickinson and Company Price and Consensus | Becton, Dickinson and Company Quote
Factors at Play
Becton, Dickinson's innovative product pipeline is a key catalyst in our view. A plethora of regulatory approvals in the United States and International markets are helping the company to rapidly expand its product portfolio. Management at Becton, Dickinson expects that strong demand for its Pyxis ES platform and infusion pumps to be growth drivers in the fiscal fourth quarter. Overall for fiscal 2017, revenues are anticipated to increase approximately 4.5-5.0%. The Zacks Consensus Estimate for BD Medical segment is at $2.105 billion for the fourth quarter, signifying sequential growth of 2.8%. Meanwhile, the Zacks Consensus Estimate for the Medical Surgical Systems is pegged at at $908 million, up 4.4% sequentially.
Additionally, partnerships and collaborations are providing the company a competitive edge. However, an unfavorable foreign exchange rate is anticipated to remain headwind for the rest of year. Furthermore, uncertainties associated with the possibilities of a repeal of the Affordable Care Act under President Trump add to the company’s concerns.
The company’s estimate revision trend is also encouraging. For the current quarter, five analysts moved north compared to no downward revision in the last two months. Over the last three months, the current-quarter estimates improved from $2.37 per share to $2.38. Overall for fiscal 2017, adjusted earnings (on a currency-neutral basis) are expected in the range of $9.42 to $9.47, reflecting year-over-year growth of 10%.
Stocks to Consider
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
INC Research Holdings, Inc (INCR - Free Report) has an Earnings ESP of +1.70% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medpace Holdings Inc (MEDP - Free Report) has an Earnings ESP of +0.47% and carries a Zacks Rank #3.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +1.00% and carries a Zacks Rank #3.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>