It has been about a month since the last earnings report for Becton Dickinson (BDX Quick QuoteBDX - Free Report) . Shares have added about 3.5% in that time frame, underperforming the S&P 500.

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

Becton Dickinson Earnings Surpass Estimates in Q4

Becton, Dickinson and Company, also known as BD, reported fourth-quarter fiscal 2020 adjusted earnings per share of $2.79, which beat the Zacks Consensus Estimate of $2.50 by 11.6%. The bottom line however dropped 15.7% on a year-over-year basis and fell 15.1% at constant currency (cc).

For fiscal 2020, adjusted earnings per share came in at $10.20, which beat the Zacks Consensus Estimate by 3%. However, the figure fell 12.7% year over year.

Revenues

For the quarter, the company raked in revenues of $4.78 billion, beating the Zacks Consensus Estimate by 6.7%. Also, the figure grew 4.4% from the year-ago quarter on a reported and currency-neutral basis.

For fiscal 2020, revenues totaled $17.11 billion, beating the Zacks Consensus Estimate by 1.7%. However, the figure fell 1% year over year.

Segment Details

BD Medical

In the quarter under review, the company reported worldwide revenues of $2.32 billion, down 4.9% from the year-ago quarter, both on a reported basis and at cc. Per management, the downside can be attributed to BD Alaris System remediation in the Medication Management Solutions unit and the impact of COVID-19 across the segment. However, sustained robust performance in the Pharmaceutical Systems unit partially offset the downside.

BD Life Science

Worldwide revenues in the segment totaled $1.49 billion, up 31.2% year over year and 31.4% at cc. Per management, the upside was driven by strong sales associated with  COVID-19 diagnostic testing solutions in the Diagnostic Systems unit on the BD Veritor and BD Max platforms.

BD Interventional

This segment generated worldwide revenues of $0.98 billion, down 3.4% from the year-ago quarter and 3.5% at cc. This was due to the impact of COVID-19 on the segment.

Geographic Results

US

In the fiscal fourth quarter, revenues in the United States grew 7.4% to $2.75 billion. Per management, solid performance in the United States reflects higher sales associated with COVID-19 testing solutions in the Diagnostic Systems unit on the BD Veritor and BD Max platforms. However, expected declines in the Medication Management Solutions unit due to the BD Alaris System remediation partially offset the upside.

.International

Revenues outside the United States grossed $2.03 billion, up 0.5% from the year-ago quarter, both on reported and currency-neutral basis. Per management, this upside was driven by strong performance in Europe, which was partially offset by declines in China, EMA and Latin America.

Margin Analysis

In the fiscal fourth quarter, gross profit amounted to $2.2 billion, down 2.6% from the prior-year quarter tally. Gross margin was 46.1%, down 332 bps from the prior-year quarter.

Adjusted operating profit amounted to $707 million, down 21.6% from the year-ago figure. Adjusted operating margin was 14.8%, down 490 bps.

Cash Position

The company exited fiscal 2020 with cash and equivalents amounting to $2.83 billion, compared with $536 million in the year-ago period. Cumulative net cash provided by operating activities came in at $3.54 billion, compared with $3.33 billion in the year-ago period.

Fiscal 2021 Guidance

For 2021, revenues are projected to grow high single to low double-digits percentage rate. The Zacks Consensus Estimate for the same is pegged at $18.80 billion.

Full fiscal 2021 adjusted earnings per share is estimated between $12.40 and $12.60. This suggests growth of almost 21.5% to 23.5%  compared to prior fiscal year. The Zacks Consensus Estimate for the same is pegged at $12.53.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

At this time, Becton Dickinson has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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.

Outlook

Becton Dickinson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.