Becton, Dickinson and Company Braces for Q4 Earnings Report
With a market cap of $68.8 billion, Franklin Lakes, New Jersey-based Becton, Dickinson and Company (BDX) stands as a key player in the global medical technology sector. The company focuses on developing and supplying medical devices, diagnostic products, and laboratory equipment aimed at enhancing medication delivery, diagnostics, and interventional care. BDX is set to release its fiscal Q4 earnings results before market opens on Thursday, November 7.
Analysts Predict Strong Growth in Earnings
In anticipation of this earnings report, analysts forecast that the medical device manufacturer will announce a profit of $3.77 per share. This figure represents a notable increase of 10.2% compared to last year’s earnings of $3.42 per share for the same quarter. BDX has demonstrated a solid track record, exceeding or meeting Wall Street’s earnings expectations in the past four quarters. In fact, the company outperformed the consensus EPS estimate by 5.7% in the most recent quarter.
Future Earnings Projections Look Promising
Looking ahead, analysts project that BDX will report earnings per share of $13.11 for fiscal 2024, which marks an increase of 7.4% from $12.21 in fiscal 2023. By fiscal 2025, EPS is expected to grow further, reaching $14.30, a rise of 9.1% year-over-year.
Stock Performance Lags Behind Market
Over the past 52 weeks, Becton, Dickinson and Company’s stock has declined by 5%, underperforming the S&P 500 Index’s ($SPX) impressive 41.4% return and the Health Care Select Sector SPDR Fund’s (XLV) 20.9% increase over the same timeframe.
Recent Earnings Report Shows Mixed Signals
Despite reporting a better-than-expected adjusted EPS of $3.50 for Q3, BDX shares dropped 2.1% on August 1 due to a miss on revenue expectations. The company’s sales of nearly $5 billion fell short of analyst projections, indicating slower-than-expected revenue growth. Additionally, BDX narrowed its full-year revenue guidance to $20.1 billion and reduced its anticipated organic revenue growth to a range of 5% – 5.3%, raising concerns about potential demand weaknesses in certain areas.
Analysts Remain Bullish on Stock
Despite these challenges, analysts maintain a positive outlook on Becton, Dickinson and Company stock, reflecting a “Strong Buy” rating overall. Among 17 analysts covering the stock, 14 advocate for a “Strong Buy,” one recommends a “Moderate Buy,” and the remaining two suggest a “Hold” rating. This bullish assessment has strengthened compared to three months ago when only 12 analysts had a “Strong Buy” stance.
The average analyst price target for BDX stands at $278.67, indicating a potential upside of 16.6% from current pricing.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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