BD (BDX) Gears Up for Q2 Earnings: What’s in the Offing?

Becton Dickinson and Company BDX, popularly known as BD, is scheduled to release second-quarter fiscal 2021 results on May 6, before the opening bell.

The company delivered an earnings surprise of 44.9% in the last reported quarter. Its bottom line also beat estimates in each of the trailing four quarters, the average being 18.9%.

Q2 Estimates

For the quarter to be reported, the Zacks Consensus Estimate for adjusted earnings per share (EPS) is pegged at $3.04, suggesting 19.2% growth from the prior-year quarter’s reported figure. The same for revenues stands at 4.84 billion, indicating a rise of 13.7% from the year-ago period’s reported number.

BD Life Sciences: A Key Catalyst

In the fiscal first quarter, the company saw solid revenue growth at the BD Life Sciences segment, driven by strong sales associated with COVID-diagnostic testing solutions in the Diagnostic Systems unit on the BD Veritor Plus and BD Max platforms, a trend that most likely continued in the fiscal second quarter.

In February 2021, BD collaborated with Scanwell Health, a renowned name in smartphone-enabled at-home medical tests. The partnership is aimed at creating an at-home rapid test for SARS-CoV-2 using BD’s antigen test and the Scanwell Health mobile app. In the same month, management announced the receipt of emergency use authorization (EUA) from the FDA for a new combination molecular diagnostic test to detect both SARS-CoV-2 and Influenza A+B in a single test that can generate results in two to three hours. The new test also attained a CE mark approval.

Later in March, BD received an EUA from the FDA for a new, rapid antigen test, which can simultaneously identify SARS-CoV-2, influenza A and influenza B in a single test. In the same month, the company collaborated with ImageMover to provide a companion mobile app that will ease the process of conducting SARS-CoV-2 antigen tests/assays done on the BD Veritor Plus System at regular testing locations (schools and businesses).

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The aforementioned developments are likely to get reflected in the results for the fiscal second quarter.

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

Other Factors to Note

Sturdy performance by the BD Interventional arm might reflect on the company’s second-quarter fiscal 2021 results owing to a robust progress across Surgery and Peripheral Intervention business units.

Also, 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 performance in the Medication Delivery Solutions and Medication Management Solutions business units.

In November 2020, BD closed the acquisition of the Medical Business assets of CUBEX LLC, a developer of cloud-based software offerings for advanced medication management.

In December, management announced its decision to invest $1.2 billion in expanding and enhancing the manufacturing capacity as well as technology for pre-fillable syringes (PFS) and advanced drug delivery systems (ADDS) over the next four years.

These developments are expected to have driven the BD Medical segment in the to-be-reported quarter.

However, the company anticipates the to-be-reported results to reflect the impact of foreign exchange headwinds.

What the Zacks Model Unveils

Our proven model predicts a beat for BD this time around. The combination of a positive Earnings ESP a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here as you will see below.

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Earnings ESP: BD has an Earnings ESP of +1.16%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: BD carries a Zacks Rank #3, currently.

Other Stocks Worth a Look

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

AmerisourceBergen ABC has an Earnings ESP of +0.23% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

DENTSPLY SIRONA XRAY has an Earnings ESP of +11.36% and is a Zacks #2 Ranked stock, presently.

Zimmer Biomet Holdings ZBH has an Earnings ESP of +1.69% and a Zacks Rank of 3 at present.

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