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BD (BDX) Gears Up for Q4 Earnings: What's in the Offing?

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Becton Dickinson and Company BDX, popularly known as BD, is scheduled to report fourth-quarter fiscal 2021 results on Nov 4, before market opens.

In the last-reported quarter, the company’s earnings of $2.74 per share surpassed the Zacks Consensus Estimate by 11.4%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 18.20%, on average.

Let’s see how things have shaped up for BD prior to this announcement.

Factors to Note

BD Life Sciences

During its fiscal third-quarter earnings call in early August, BD had confirmed that it would start shipping its BD MAX and BD Veritor combination flu COVID assays the same month, in time for the respiratory season. The company had also confirmed that it was registering strong performances from its Biosciences business over the past few months and was expecting the momentum to have continued in the to-be-reported quarter as well, thereby contributing to the revenues.

In June, the company launched its new e-commerce site, bdbiosciences.com, which is an entirely new and innovative digital marketplace designed to provide a best-in-class online purchasing experience for its flow cytometry customers. Given the early positive feedback, the e-commerce site is likely to continue to witness excellent traction and early adoption.

Becton, Dickinson and Company Price and EPS Surprise

Becton, Dickinson and Company Price and EPS Surprise
Becton, Dickinson and Company Price and EPS Surprise

Becton, Dickinson and Company price-eps-surprise | Becton, Dickinson and Company Quote

BD has launched a slew of products over the past few months, which includes the launch of its FACSymphony A5 SE (the first BD spectral analyzer and provides a higher cellular parameter analysis) and FACSymphony A1 Cell Analyzer (which offers high-end technology and a cost-effective bench top design). This apart, BD boasts of a robust pipeline of modular, scalable new instruments and next-generation dyes that will allow its customers to fully leverage its complete and integrated solution suite. All these factors are likely to have considerably driven the company’s fiscal 2021 fourth-quarter results.

BD, similar to the past few months, is likely to have continued to gain from its COVID-19 diagnostic testing business, given the latest surge in new infections. The company launched the BD COR System, a new and fully-automated high-throughput diagnostic system utilizing robotics and sample management software algorithms (in August). These developments are likely to have boosted this segment’s revenues in the to-be-reported quarter.

The company, in May, announced that the industry's first self-collection claim for human papillomavirus (“HPV”) screening has been CE marked. The new claim enables laboratories and facilities to process self-collected samples via a BD diluent tube using the BD Onclarity HPV Assay on either the BD Viper LT or the BD COR System.

BD Interventional

BD’s Interventional business is likely to have been boosted by the availability of its PeritX Peritoneal Catheter System, which received the FDA’s 510(k) clearance in June, and BD Surgiphor Sterile Wound Irrigation System (available since May). Strong adoption of these products is expected to contribute significantly to the company’s revenues in the to-be-reported quarter.

The Zacks Consensus Estimate for fiscal fourth-quarter BD Interventional revenues is pegged at $1.09 billion, suggesting an improvement of 11.7% from the year-ago quarter’s reported figure.

Other Factors to Note

BD, in April, received the FDA’s clearance for the Pristine Long-Term Hemodialysis Catheter, a new hemodialysis catheter with a unique side-hole-free symmetric Y-Tip distal lumen design. The Pristine Catheter was to be available in the United States from May 2021. This is expected to drive investors’ optimism on the stock.

The company is likely to have witnessed higher revenues at its BD Medical segment in the to-be-reported quarter. This upside is expected to have been driven by a strong recovery in the United States, led by strong growth in catheters and vascular care devices.

However, BD anticipates that the to-be-reported quarter’s results might be impacted by the COVID-19 delta variant on elective surgeries in some U.S. states.

The Estimate Picture

For fourth-quarter fiscal 2021, the Zacks Consensus Estimate of $4.90 billion for total revenues implies an improvement of 2.3% from the prior-year quarter’s reported figure.

The consensus estimate for earnings per share is pegged at $2.42, indicating a decline of 13.3% from the prior-year period’s reported number.

What Our Model Suggests

Our proven model predicts an earnings beat for BD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat.

Earnings ESP: BD has an Earnings ESP of +2.02%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2.

Other Stocks Worth a Look

Here are a few other medical stocks worth considering as these also have the right combination of elements to beat on earnings this reporting cycle.

Insulet Corporation PODD has an Earnings ESP of +15.79% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Henry Schein, Inc. HSIC has an Earnings ESP of +1.06% and a Zacks Rank of 2, at present.

West Pharmaceutical Services, Inc. WST has an Earnings ESP of +1.93% and is a Zacks #2 Ranked stock.

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Becton, Dickinson and Company (BDX) : Free Stock Analysis Report

Henry Schein, Inc. (HSIC) : Free Stock Analysis Report

West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report

Insulet Corporation (PODD) : Free Stock Analysis Report

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