Results: Becton, Dickinson and Company Beat Earnings Expectations And Analysts Now Have New Forecasts

Becton, Dickinson and Company (NYSE:BDX) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were US$5.0b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.85 were also better than expected, beating analyst predictions by 13%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Becton Dickinson

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Taking into account the latest results, the current consensus from Becton Dickinson's 14 analysts is for revenues of US$20.2b in 2024. This would reflect a credible 2.6% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 52% to US$7.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.3b and earnings per share (EPS) of US$6.85 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$278, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Becton Dickinson at US$325 per share, while the most bearish prices it at US$240. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Becton Dickinson's rate of growth is expected to accelerate meaningfully, with the forecast 5.4% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 8.1% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Becton Dickinson is expected to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Becton Dickinson's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Becton Dickinson's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Becton Dickinson going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Becton Dickinson that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.