Becton Dickinson (BDX) came out with quarterly earnings of $3.18 per share, beating the Zacks Consensus Estimate of $2.98 per share. This compares to earnings of $3.19 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.71%. A quarter ago, it was expected that this medical device manufacturer would post of $2.86 per share earnings when it actually produced earnings of $3.64, delivering a surprise of 27.27%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.
Becton Dickinson shares have added about 0.8% since the beginning of the year versus the S&P 500’s decline of -9.8%.
What’s Next for Becton Dickinson?
While Becton Dickinson has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Becton Dickinson: unfavorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.91 on $4.73 billion in revenues for the coming quarter and $12.75 on $19.54 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical – Dental Supplies is currently at the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Dentsply International (XRAY), another stock in the same industry, has yet to report results for the quarter ended March 2022. The results are expected to be released on May 10.
This dental products manufacturer is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of -30.6%. The consensus EPS estimate for the quarter has been revised 12.3% lower over the last 30 days to the current level.
Dentsply International’s revenues are expected to be $965.45 million, down 6% from the year-ago quarter.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Click to get this free report
Becton, Dickinson and Company (BDX): Free Stock Analysis Report
DENTSPLY Sirona Inc. (XRAY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.