Becton Dickinson Stock Underperforms Despite Strong Q1 Results

Becton Dickinson's stock has lagged behind the market despite strong earnings and a raised outlook. The adjusted EPS rose significantly, beating expectations, while revenue also exceeded forecasts, indicating potential for recovery.

Date: 17-02-2025

AI Rating: 6

Performance Overview: Becton, Dickinson and Company (BDX) has faced challenges over the past year, underperforming both the broader S&P 500 and the iShares U.S. Medical Devices ETF. Its stock dropped 5.8% in contrast to the S&P 500’s impressive 22.3% gain.

Q1 Earnings Highlights: The company's latest Q1 earnings revealed an adjusted EPS growth of 28% year-over-year, reaching $3.43, which surpassed expectations of $2.98. Revenue increased by 9.8%, achieving $5.17 billion, again beating consensus forecasts. This performance showcases BDX's resilience and growth potential, despite recent stock declines.

Future Guidance: Following these results, BDX raised its fiscal 2025 guidance for adjusted EPS to between $14.30 and $14.60, reflecting a promising 10% growth at the midpoint. Additionally, analysts project an EPS growth of 9.8% for the current fiscal year, indicating strong future profitability expectations.

Analyst Sentiment: The consensus rating among analysts remains a “Strong Buy,” which indicates overall confidence in the company’s future prospects. This stems from 14 “Strong Buy” ratings, one “Moderate Buy,” and two “Holds” across 17 analysts.

Despite BDX's promising earnings and solid future guidance, the stock has recently fallen. However, the raised price targets from Barclays and consensus among analysts may impact market sentiment positively in the near future.

Stocks: BDX