Becton Dickinson Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Becton, Dickinson (NYSE:BDX) will unveil its latest earnings on Thursday, August 2, 2012. Becton, Dickinson & Company provides healthcare institutions, life science researchers, clinical laboratories, and individual consumers with laboratory equipment, medical supplies, devices, and diagnostic products.

Becton, Dickinson Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.53 per share, a rise of 1.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.52. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.53 during the last month. Analysts are projecting profit to rise by 1.4% compared to last year’s $5.70.

Past Earnings Performance: Last quarter, the company reported net income of $1.38 per share, in line with the mean estimate. It was the third straight quarter of meeting expectations.

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A Look Back: In the second quarter, profit fell 6.7% to $291 million ($1.39 a share) from $312 million ($1.38 a share) the year earlier, meeting analyst expectations. Revenue rose 3.6% to $1.99 billion from $1.92 billion.

Stock Price Performance: Between May 31, 2012 and July 27, 2012, the stock price had risen $2.81 (3.8%), from $73.13 to $75.94. The stock price saw one of its best stretches over the last year between December 16, 2011 and December 27, 2011, when shares rose for seven straight days, increasing 5.9% (+$4.15) over that span. It saw one of its worst periods between May 24, 2012 and June 4, 2012 when shares fell for seven straight days, dropping 3.4% (-$2.54) over that span.

Analyst Ratings: There are mostly holds on the stock with 10 of 18 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.2% in the third quarter of the last fiscal year, 18.4% in the fourth quarter of the last fiscal year and 2.5% in the first quarter before increasing again in the second quarter.

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 24.4% in the fourth quarter of the last fiscal year, by 16.8% in the first quarter and again in the second quarter.

Wall St. Revenue Expectations: On average, analysts predict $2.02 billion in revenue this quarter, a rise of 0.5% from the year-ago quarter. Analysts are forecasting total revenue of $7.96 billion for the year, a rise of 1.7% from last year’s revenue of $7.83 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.27 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.54 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 6.9% to $5.3 billion while liabilities rose by 0.9% to $1.62 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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