Can BD Medical Drive Becton, Dickinson's (BDX) Q2 Earnings?

Becton, Dickinson and Company’s BDX, popularly known as BD, second-quarter fiscal 2019 results are scheduled to release on May 9, before market opens. While the results are likely to show steady growth in the core BD Medical segment, weakness in BD Life Sciences may partially mar results.

Notably, BD has a positive average surprise of 1% in the trailing four quarters.

Which Way Are Estimates Treading?

For the quarter to be reported, the Zacks Consensus Estimate for BD’s earnings per share is pegged at $2.59, suggesting a year-over-year decline of 2.3%. The same for revenues stands at $4.24 billion, indicating an increase of 0.5%.

Let’s see how things are shaping up prior to the earnings release.

BD Medical Likely to Drive Q2 Earnings

BD Medical, one of the major revenue drivers of the company, is expected to drive fiscal second-quarter results. Strong year-over-year growth in revenues from needles, syringes and intravenous catheters for medication delivery, prefilled IV flush syringes, syringes and pen needles for diabetes care and others are likely to boost the segment.

It is encouraging to note that for the second quarter, the Zacks Consensus Estimate for the segment’s revenues is pegged at $2.21 billion, suggesting a rise of 1.7% year over year.

Notably, BD recently launched two cloud-based applications, BD HealthSight Data Manager and BD HealthSight Diversion Analytics, which are likely to contribute to the segment’s results.

Additionally, management expects the sub-segments ??? Medical Surgical Solutions, Pharmaceutical Systems and Diabetes Care — to drive the unit.

The Zacks Consensus Estimate for Medical Surgical Solutions’ fiscal second-quarter revenues stands at $975 million, calling for a year-over-year rise of 1.8%. The growth is expected to be driven by strength in vascular access and infusion disposables.

For Pharmaceutical Systems, the Zacks Consensus Estimate for second-quarter revenues is pinned at $344 million, suggesting a year-over-year rise of 12.8%.

Management expects strong demand for core products and increased customer ordering.

For Diabetes Care, the Zacks Consensus Estimate for second-quarter revenues stands at $262 million, suggesting a drop of 8.7% year over year.

Timing of orders in the United States and the EMEA is likely to affect sales in the sub-segment.

Becton, Dickinson and Company Price and EPS Surprise

Becton, Dickinson and Company Price and EPS Surprise | Becton, Dickinson and Company Quote

Other Factors at Play

BD has seen a slew of developments lately, which might reflect on its fiscal second-quarter results.

In the BD Life Sciences segment, the company received FDA clearance for the BD Phoenix CPO Detect test and the BD MAX Enteric Viral Panel which will broaden the suite of diagnostic solutions offered by the unit.

However, the Zacks Consensus Estimate for the unit’s second-quarter revenues stands at $1.06 billion, indicating a year-over-year decline of 3.3%.

BD also launched WavelinQ, a solution that provides a minimally-invasive nonsurgical option for creating critical AV fistulas for hemodialysis procedures. This is expected to boost the BD Interventional segment.