Stock Analysis

Becton, Dickinson and Company Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

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NYSE:BDX
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The quarterly results for Becton, Dickinson and Company (NYSE:BDX) were released last week, making it a good time to revisit its performance. It looks like a credible result overall - although revenues of US$4.7b were what the analysts expected, Becton Dickinson surprised by delivering a (statutory) profit of US$0.96 per share, an impressive 60% above what was forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Becton Dickinson

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NYSE:BDX Earnings and Revenue Growth February 3rd 2024

Following the latest results, Becton Dickinson's 15 analysts are now forecasting revenues of US$20.3b in 2024. This would be a credible 4.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 61% to US$7.03. In the lead-up to this report, the analysts had been modelling revenues of US$20.2b and earnings per share (EPS) of US$5.01 in 2024. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at US$286, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Becton Dickinson analyst has a price target of US$325 per share, while the most pessimistic values it at US$240. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Becton Dickinson's growth to accelerate, with the forecast 5.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 8.0% annually. So it's clear that despite the acceleration in growth, Becton Dickinson is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Becton Dickinson following these results. 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..

However, before you get too enthused, we've discovered 2 warning signs for Becton Dickinson that you should be aware 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.

About NYSE:BDX

Becton Dickinson

Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide.

Established dividend payer with adequate balance sheet.