Latest news with #BDX
Yahoo
6 days ago
- Business
- Yahoo
Earnings Preview: What to Expect From Becton, Dickinson and Company's Report
Becton, Dickinson and Company (BDX) develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products. Valued at $52.3 billion by market cap, the company offers solutions that help advance medical research and genomics, enhance the diagnosis of infectious diseases and cancer, improve medication management, and promote infection prevention. The global medical technology giant is expected to announce its fiscal third-quarter earnings for 2025 before the market opens on Thursday, Aug. 7. Ahead of the event, analysts expect BDX to report a profit of $3.42 per share on a diluted basis, down 2.3% from $3.50 per share in the year-ago quarter. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports. More News from Barchart UnitedHealth Stock Spirals Lower Again. Don't Buy the Dip. This Self-Driving Car Stock Is Surging on a Major Nvidia Boost Auto Revenue Keeps Plunging at Tesla. Should You Buy the TSLA Stock Dip or Run Far Away? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For the full year, analysts expect BDX to report EPS of $14.17, up 7.8% from $13.14 in fiscal 2024. Its EPS is expected to rise 3.4% year over year to $14.65 in fiscal 2026. BDX stock has significantly underperformed the S&P 500 Index's ($SPX) 17.3% gains over the past 52 weeks, with shares down 22.6% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund's (XLV) 9.4% dip over the same time frame. BDX's underperformance is attributed to a software recall in its Alaris infusion pump systems. Software issues in the Alaris Systems Manager and Care Coordination Engine Infusion Adapter can cause delayed responses and potentially incorrect therapy administration, posing risks to patient safety. The recall affects critical components that integrate the pump with hospital electronic medical record systems. On May 1, BDX shares closed down more than 18% after reporting its Q2 results. Its adjusted EPS of $3.35 exceeded Wall Street's expectations of $3.28. The company's revenue was $5.3 billion, falling short of Wall Street forecasts of $5.4 billion. BDX expects full-year adjusted EPS in the range of $14.06 to $14.34, and expects revenue in the range of $21.8 billion to $21.9 billion. Analysts' consensus opinion on BDX stock is reasonably bullish, with an overall 'Moderate Buy' rating. Out of 17 analysts covering the stock, seven advise a 'Strong Buy' rating, one suggests a 'Moderate Buy,' and nine give a 'Hold.' BDX's average analyst price target is $213.71, indicating a potential upside of 16.4% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
27-06-2025
- Business
- Yahoo
Becton, Dickinson and Company (BDX): A Bull Case Theory
We came across a bullish thesis on Becton, Dickinson and Company on Disruptive Analytics' Substack by Magnus Ofstad. In this article, we will summarize the bulls' thesis on BDX. Becton, Dickinson and Company's share was trading at $169.72 as of June 23rd. BDX's trailing and forward P/E were 32.89 and 11.55 respectively, according to Yahoo Finance. A laboratory technician in a cleanroom suit inspecting a medical device prototype. Becton, Dickinson and Company (BDX), a dividend aristocrat with 53 consecutive years of dividend increases, has seen its stock decline over 20% this year, raising concerns among investors despite its traditionally stable, recession-resistant profile. BDX is a global leader in medical technology, manufacturing and distributing medical supplies, diagnostic products, and lab equipment. However, recent pressures—including weakened demand in diagnostics and biosciences, as well as tariffs on Chinese imports—led the company to cut its guidance during Q1 earnings, exacerbating market pessimism. Activist investor Starboard Value, known for successful interventions at firms like Salesforce and Splunk, has taken a large position in BDX, targeting the company for its perceived undervaluation driven by operational inefficiencies and structural misalignment. Starboard contends that BDX is trading at a 'sum-of-the-parts' discount, as the lower-growth Life Sciences segment weighs down the valuation of the faster-growing, higher-margin MedTech business. To unlock shareholder value, Starboard is pushing for a separation or sale of the Life Sciences division, suggesting that such a move could boost BDX's valuation by up to 30%. The logic is that the divestiture would sharpen management focus and enhance operational performance. However, realizing this upside is not straightforward. Early buyer interest has reportedly fallen short of expected valuations, and a spin-off could risk a market re-rating below book value, leading to a potential write-down. While the strategic rationale for separation is strong, the path to execution is fraught with valuation uncertainty. The coming months will reveal whether Starboard can deliver another successful turnaround. Previously we covered a on West Pharmaceutical Services, Inc. (WST) by Business Model Mastery in May 2025, which highlighted its regulatory moat, entrenched customer relationships, and irreplaceable role in drug delivery systems. The company's stock price has appreciated approximately by 5.4% since our coverage. This is because the thesis played out. The thesis still stands as structural demand for injectable therapies remains strong. Magnus Ofstad shares a similar view on BDX but emphasizes activist-driven value unlocking through business separation. Becton, Dickinson and Company is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held BDX at the end of the first quarter which was 56 in the previous quarter. While we acknowledge the risk and potential of BDX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
BD's Q1 Earnings Call: Our Top 5 Analyst Questions
Becton, Dickinson and Company's first quarter results were met with a sharp negative market reaction, reflecting concerns around revenue performance and margin compression. Management attributed the shortfall primarily to weaker demand in its Life Sciences segment, driven by reduced global research funding and slower-than-expected recovery in diagnostic testing volumes. CEO Tom Polen stated, 'We are not satisfied with this quarter's top-line growth,' highlighting both external pressures—such as changes in U.S. research grant policy—and internal supply chain adjustments. The company also pointed to delays in returning blood culture testing to normal levels, despite resolving earlier supplier issues. Is now the time to buy BDX? Find out in our full research report (it's free). Revenue: $5.27 billion vs analyst estimates of $5.35 billion (4.5% year-on-year growth, 1.5% miss) Adjusted EPS: $3.35 vs analyst estimates of $3.28 (2.1% beat) Adjusted EBITDA: $1.52 billion vs analyst estimates of $1.54 billion (28.9% margin, 1.1% miss) Adjusted EPS guidance for the full year is $14.20 at the midpoint, missing analyst estimates by 1.2% Operating Margin: 10.4%, down from 14.5% in the same quarter last year Constant Currency Revenue rose 6% year on year (4.7% in the same quarter last year) Market Capitalization: $48.98 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Larry Biegelsen (Wells Fargo) asked for clarity on the magnitude and mitigation of tariff expenses, with CFO Chris DelOrefice explaining that the $0.25 per share impact is net of mitigation efforts and would need to be partially annualized for next year. Robbie Marcus (JPMorgan) pressed on specific drivers behind the downward revision in organic growth, with DelOrefice breaking down the headwinds as primarily stemming from China, research spending cuts, and slow diagnostic recovery. Matt Taylor (Jefferies) explored the company's levers for managing tariffs, prompting CEO Tom Polen to detail inventory repositioning, supplier shifts, and the use of alternate global manufacturing sites to reduce exposure. Travis Steed (Bank of America) questioned the credibility of the accelerated growth outlook for the second half, with management conceding that macro volatility has made guidance more difficult but expressing confidence in the pipeline of launches and operational execution. Patrick Wood (Morgan Stanley) asked about sustaining internal efficiency programs, to which Polen and President Mike Feld highlighted that the BD Excellence initiatives are still expanding and viewed as energizing for employees, freeing up time for value-added work. In the coming quarters, the StockStory team will be monitoring (1) the pace of recovery in diagnostics and research funding environments, (2) successful ramp-up and market uptake of new product launches such as FACSDiscover A8 and CentroVena One, and (3) the effectiveness of tariff mitigation strategies as the external landscape evolves. Execution on the planned business separation and further margin improvements through BD Excellence will also be key signposts. BD currently trades at $170.90, down from $206.90 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
25-06-2025
- Business
- Yahoo
Becton, Dickinson and Company (BDX): A Bull Case Theory
We came across a bullish thesis on Becton, Dickinson and Company on Disruptive Analytics' Substack by Magnus Ofstad. In this article, we will summarize the bulls' thesis on BDX. Becton, Dickinson and Company's share was trading at $169.72 as of June 23rd. BDX's trailing and forward P/E were 32.89 and 11.55 respectively, according to Yahoo Finance. A laboratory technician in a cleanroom suit inspecting a medical device prototype. Becton, Dickinson and Company (BDX), a dividend aristocrat with 53 consecutive years of dividend increases, has seen its stock decline over 20% this year, raising concerns among investors despite its traditionally stable, recession-resistant profile. BDX is a global leader in medical technology, manufacturing and distributing medical supplies, diagnostic products, and lab equipment. However, recent pressures—including weakened demand in diagnostics and biosciences, as well as tariffs on Chinese imports—led the company to cut its guidance during Q1 earnings, exacerbating market pessimism. Activist investor Starboard Value, known for successful interventions at firms like Salesforce and Splunk, has taken a large position in BDX, targeting the company for its perceived undervaluation driven by operational inefficiencies and structural misalignment. Starboard contends that BDX is trading at a 'sum-of-the-parts' discount, as the lower-growth Life Sciences segment weighs down the valuation of the faster-growing, higher-margin MedTech business. To unlock shareholder value, Starboard is pushing for a separation or sale of the Life Sciences division, suggesting that such a move could boost BDX's valuation by up to 30%. The logic is that the divestiture would sharpen management focus and enhance operational performance. However, realizing this upside is not straightforward. Early buyer interest has reportedly fallen short of expected valuations, and a spin-off could risk a market re-rating below book value, leading to a potential write-down. While the strategic rationale for separation is strong, the path to execution is fraught with valuation uncertainty. The coming months will reveal whether Starboard can deliver another successful turnaround. Previously we covered a on West Pharmaceutical Services, Inc. (WST) by Business Model Mastery in May 2025, which highlighted its regulatory moat, entrenched customer relationships, and irreplaceable role in drug delivery systems. The company's stock price has appreciated approximately by 5.4% since our coverage. This is because the thesis played out. The thesis still stands as structural demand for injectable therapies remains strong. Magnus Ofstad shares a similar view on BDX but emphasizes activist-driven value unlocking through business separation. Becton, Dickinson and Company is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held BDX at the end of the first quarter which was 56 in the previous quarter. While we acknowledge the risk and potential of BDX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Yahoo
09-06-2025
- Business
- Yahoo
3 Healthcare Stocks Skating on Thin Ice
From novel pharmaceuticals to telemedicine, most healthcare companies are on a mission to drive better patient outcomes. But speed bumps such as inventory destockings have persisted in the wake of COVID-19, and over the past six months, the industry has pulled back by 12.3%. This performance was noticeably worse than the S&P 500's 1.9% fall. Investors should tread carefully as the influx of venture capital has also ushered in a new wave of competition. Taking that into account, here are three healthcare stocks we're swiping left on. Market Cap: $48.91 billion With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE:BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide. Why Do We Think Twice About BDX? Annual sales growth of 4.1% over the last five years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand 10.5 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Below-average returns on capital indicate management struggled to find compelling investment opportunities BD is trading at $170.95 per share, or 11.4x forward P/E. If you're considering BDX for your portfolio, see our FREE research report to learn more. Market Cap: $8.28 billion With a unique business model combining end-of-life care and household services, Chemed (NYSE:CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services. Why Does CHE Fall Short? 4.6% annual revenue growth over the last five years was slower than its healthcare peers Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.9 percentage points Waning returns on capital imply its previous profit engines are losing steam At $568.39 per share, Chemed trades at 22x forward P/E. Read our free research report to see why you should think twice about including CHE in your portfolio, it's free. Market Cap: $10.73 billion Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE:RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure. Why Is RVTY Risky? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 8.8 percentage points Eroding returns on capital suggest its historical profit centers are aging Revvity's stock price of $91.03 implies a valuation ratio of 17.6x forward P/E. Check out our free in-depth research report to learn more about why RVTY doesn't pass our bar. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
