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What Investors Can Expect from Becton Dickinson in Fiscal 3Q17

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Part 2
What Investors Can Expect from Becton Dickinson in Fiscal 3Q17 PART 2 OF 5

Could Becton Dickinson Exceed Analysts’ Estimates in Fiscal 3Q17?

BD’s revenue estimates

Becton Dickinson (BDX), or BD, plans to announce its fiscal 3Q171 earnings on August 3. The company has exceeded analysts’ revenue estimates for the last three quarters. However, the company failed to meet its revenue estimates in fiscal 3Q16. The chart below shows analysts’ revenue estimates and the company’s actual reported revenues.

Could Becton Dickinson Exceed Analysts’ Estimates in Fiscal 3Q17?

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In fiscal 3Q17, Wall Street expects BD to report around $3.1 billion in revenues. The estimate represents a YoY (year-over-year) decline of ~4.4% in sales on a reported basis.

In fiscal 2Q17, BD reported revenues of ~$3.0 billion. The company’s actual revenues surpassed analysts’ estimates by ~1.5%. However, the revenues in the quarter fell ~3.2%, on a YoY basis. This fall was mostly due to the negative impact of BD’s Respiratory Solution business divestiture during fiscal 1Q17. On a comparable basis, BD’s sales registered 5.2% YoY growth on a currency neutral basis.

BD’s peers Thermo Fisher Scientific (TMO), Edwards Lifesciences (EW), and Baxter International (BAX) reported YoY revenue growth of approximately 10%, 10.9%, and 0.8%, respectively, during their recently ended quarters.

Revenue drivers

BD’s recent strategic acquisitions and collaborations are expected to be one of the key growth drivers for the company. BD recently entered into a collaboration with FlowJo to offer its customers a cloud-based platform for the company’s cell analyzer, BD FACSymphony.

In another deal, BD licensed its stochastic labeling technology to Roche. For details on these collaborations, please read Inside the Latest BD Collaborations and Growth Accelerators.

The company’s acquisition of Caesarea Medical Electronics in April 2017 also could contribute to BD’s medication management growth. Moreover, the company’s recent product launches are expected to contribute to BD’s sales in fiscal 3Q17 and ahead. For more information on this topic, please read Which BD Product Launches Will Drive the Most Growth?

The market is upbeat about the company’s C.R. Bard acquisition and geographical expansion in its emerging markets. Both factors could accelerate BD’s growth going forward.

Investors seeking diversified exposure to BD can consider investing in the iShares Core S&P 500 ETF (IVV). BD accounts for ~0.22% of the total holdings of IVV.

Next, let’s discuss BD’s fiscal 3Q17 earnings estimates.

  1. fiscal 3Q17 ended June 30, 2017
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