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Top Analyst Reports for Celgene, Schlumberger & Becton, Dickinson

Mark Vickery
EQT Corp (EQT) posts mixed first-quarter 2019 results on the back of lower operating expenses, partially offset by reduced realized prices.

Wednesday, April 24, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Celgene (CELG), Schlumberger (SLB) and Becton, Dickinson (BDX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Celgene’s shares have gained +25.4% in the past six months, outperforming the Zacks Biomedical and Genetics industry's decline of -2.6%. The Zacks analyst thinks Celgene’s key growth driver, Revlimid, continues to drive revenues. Robust performance of psoriasis drug, Otezla, is also boosting performance.

Investors are focusing on the company’s merger agreement with Bristol-Myers Squibb Company. Per the terms, Celgene shareholders will receive 1.0 share of Bristol-Myers and $50.00 in cash for each share held. Meanwhile, Celgene is also working on the label expansion of drugs like Pomalyst/Imnovid, Abraxane and Otezla, among others.

The company is focused on the next cycle of innovation with five late-stage candidates — ozanimod, fedratinib, luspatercept, liso-cel and bb2121 — all of which are expected to be launched by the end of 2020. However, the company’s dependence on Revlimid for growth is a concern. Also, pipeline setbacks are a deterrent.

(You can read the full research report on Celgene here >>>).

Shares of Schlumberger have underperformed the Zacks Oil and Gas - Field Services industry over the past year, losing -33.6% vs. -19.4%. The Zacks analyst stresses that Schlumberger is the largest oilfield services player in the world with presence in every energy market.

The company expects improvement in oilfield services in international markets where the count of drilling rigs and final investment decisions (FID) for clients’ projects are on the rise. Schlumberger’s first-quarter 2019 earnings matched expectations, courtesy of contributions from Integrated Drilling Services (IDS) projects in Saudi Arabia, India and Mexico.

However, the bottom line declined year over year owing to lower contributions from directional drilling in the land market of North America. Decline in OneStim revenues from the continent’s onshore regions added to concerns. Moreover, conservative spending by North America’s explorers and producers is likely to hurt demand for Schlumberger’s oilfield services.

(You can read the full research report on Schlumberger here >>>).

Becton, Dickinson’s shares have underperformed the Zacks Dental Supplies industry year to date, gaining +1.2% vs. +8.2%. The Zacks analyst likes the solid performance by the core BD Medical and Life Sciences units. Domestic and international revenues increased year over year in recent times.

Management is optimistic about the C.R. Bard buyout which has consistently proven to be accretive. Notably, a series of product launches and regulatory approvals in recent times continue to boost the stock. The company has kept its fiscal 2019 guidance intact. However, contraction in gross and operating margins in recent times is worrisome for Becton, Dickinson.

Customer ordering patterns are also expected to negatively impact fiscal second-quarter results. Management expects unfavorable foreign currency to remain headwinds in fiscal 2019. Stiff price competition in the MedTech space adds to the woes.

(You can read the full research report on Becton, Dickinson here >>>).

Other noteworthy reports we are featuring today include Intuitive Surgical (ISRG), Twitter (TWTR) and PPG Industries (PPG).

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Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

Revlimid, Otezla Boost Celgene (CELG) Amid Pipeline Setbacks

Schlumberger (SLB) Gains on IDS Projects, OneStim Sales Low

Core BD Medical Continues to Favor Becton, Dickinson (BDX)

Featured Reports

New Features & Security Focus Drives Twitter's (TWTR) Growth

Twitter continues to add new features and ramp up its security efforts to lower abuse, which per the Zacks analyst is boosting engagement levels.

International & Offshore Recovery to Boost Halliburton (HAL)

The Zacks analyst believes rising international activity and higher offshore spending should aid Halliburton but is concerned about pricing pressure in North American hydraulic fracturing services.

Cadence (CDNS) Rides on EDA, Hardware & IP Solutions Demand

Per the Zacks analyst, Cadence benefits from solid demand of its broad based product portfolio.

Hasbro's (HAS) U.S. and Canada Segment to Drive Growth

The Zacks analyst is optimistic about Hasbro's turnaround as its U.S. and Canada segment returned to growth in the first-quarter 2019.

Strategic Tie-ups Aid Quest (DGX), Reimbursement Issue Ails

The Zacks analyst is optimistic about Quest Diagnostics' Preferred Network partnership with UnitedHealthcare.

Snap-on's (SNA) RCI Program Aids Margins & Profitability

Per the Zacks analyst, Snap-on's focus on Rapid Continuous Improvement (RCI) program, designed to enhance organizational effectiveness and minimize costs, has been driving margins and profitability.

Loans, Rates Aid East West Bancorp (EWBC), High Costs a Woe

Per the Zacks analyst, growth in loans and deposits, and higher interest rates will support revenues.

New Upgrades

Restructuring, Acquisitions to Aid PPG Industries (PPG)

Per the Zacks analyst, cost savings from restructuring actions should support PPG Industries' margins in 2019. Acquisitions should also contribute to its sales.

Dover (DOV) Rides on Cost-Reduction Actions & Organic Growth

Per the Zacks analyst, Dover will gain from improved performance by segments, strong bookings and backlog, cost-reduction initiatives and restructuring programs.

Diversification of Investment Portfolio Aids Annaly (NLY)

Per the Zacks analyst, Annaly's effort to opportunistically grow its credit business in a bid to diversify the company's investment portfolio will provide more stable returns.

New Downgrades

Stressed Margins & Competition Hurt Intuitive Surgical (ISRG)

Intuitive Surgical has been witnessing dented margins for a couple of quarters. The Zacks analyst is apprehensive about intense competition in the global MedTech space.

High SG&A Expenses Weigh on Genuine Parts (GPC)

Per the Zacks analyst, rising costs of payroll, freight & delivery, IT, and cybersecurity are adding to Genuine Parts' SG&A expenses. This is, in turn, is putting pressure on its profit margins.

Soft Industry Demand to Hurt Whirlpool's (WHR) Top Line

Per the Zacks analyst, soft industry demand across some regions hurt Whirlpool's sales in first quarter. Expectations of soft demand in North America, Mexico and China should hurt results in 2019.

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Twitter, Inc. (TWTR) : Free Stock Analysis Report
Schlumberger Limited (SLB) : Free Stock Analysis Report
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Celgene Corporation (CELG) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
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