On Sep 23, we have updated our research report on Becton, Dickinson and Company (BDX). The company continues to enjoy growing international sales, especially in emerging markets. However, the company faces strong competition in each of its three business segments.
Becton, Dickinson maintains its focus on expansion into overseas markets, in particular, emerging markets, which accounted for about 60% of sales in the third quarter of fiscal 2014.
However, Becton, Dickinson continues to be challenged by downward pressure on demand for health care products. Hospital and lab-testing expenditure remain areas of concern. High unemployment rates in the U.S. have dampened requirement for doctors’ visits.
For the third quarter of fiscal 2014 ended Jun 30, 2014, Becton, Dickinson reported adjusted earnings per share of $1.68, reflecting a 9.1% rise (or 7.8% in constant currency) over the prior-year level of $1.54. Adjusted earnings per share were in line with the Zacks Consensus Estimate.
Revenues for the third quarter stood at $2,157 million, up 5.1% (or 4.6% in constant currency) year over year and easily surpassed the Zacks Consensus Estimate of $2,140 million. The upside was driven by strong performance in the Medical segment and continued improvement in the Biosciences segment.
Domestic revenues inched up 2.7% year over year to $871 million while overseas revenues increased 6.7% (or 6% in constant currency) to $1,286 million. Overseas revenues continued to be driven by sustained growth in emerging markets and robust safety-engineered product sales.
Currently, Becton, Dickinson carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical/dental supplies industry include The Cooper Companies Inc. (COO), Laboratory Corp. of America Holdings (LH), and McKesson Corp. (MCK). The Cooper Companies sports a Zacks Rank #1 (Strong Buy), while both Laboratory Corp. of America Holdings and McKesson Corporation carry a Zacks Rank #2 (Buy).
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