Medical supplier Becton Dickinson and Co (NYSE: BDX) is scheduled to release fiscal fourth-quarter results Tuesday ahead of the market open.
Becton is likely to wrap the year on a strong note on both the top- and bottom-line, according to JPMorgan Securities analysts.
The research firm sees medical management, urology and surgery as businesses that will remain strong heading into the coming year.
JPMorgan forecast sales of $4.6 billion, $29 million ahead of the consensus. The analyst expects top-line growth to be predominantly driven by the interventional business.
Gross margin is expected to come in slightly lower than the expected 57.3%, and this figure is likely to be offset by a lower tax rate and a stronger top-line, the analyst said.
JPMorgan forecast earnings per share of $3.30.
2020 Guidance: What To Expect
On the earnings call, the focus is likely to be on fiscal year 2020 guidance, according to JPMorgan.
The research firm expects the company to guide to 5-6% organic sales and EPS of $12.85-$13.05 for the year.
The firm sees top-line upside coming from a ramp in Bard synergies and strength across the various businesses, particularly with Pumps, Pyxis and new software introductions driving the Medication Management System; easier comps; and growth of core business in Europe for Diagnostics and new product launches in Peripheral Intervention.
Looking at the historical trend since 2008, the firm noted that Becton reported top-line beats 61% of the time and bottom-line beats 85% of the time. The company's average EPS beat is about 6 cents, according to JPMorgan.
Notwithstanding this, Becton stock reacted negatively 61% of the time, with an average decline of 0.5%, the research firm said.
Becton shares were trading higher by 1.16% at $261.14 at the time of publication.
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|Jun 2019||Maintains||Strong Buy|
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