BDX - Embedded Expectations Analysis - 2018 10 23
Becton, Dickinson and Company (BDX:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 21.9x Uniform P/E. At these levels, the market has relatively muted expectations, and management has concerns about their international markets, launch of Lutonix BTK, and potential plug-in acquisitionsSpecifically, management is confident that they saw pricing decline in Q3 2018, and may have concerns about their Strategic Planning process. Furthermore, they may lack confidence in the alignment of their TVA Medical acquisition with their overall M&A strategy, and in their ability to sustain strength of their Pharm Systems segment in Q4 2018. In addition, they may be concerned about their ability to maintain strength in Asia and China, and may lack confidence in their ability to drive growth in Europe as well as their ability to continue acquiring valuable plug-in firms. Furthermore, they may lack confidence in their ability to sustain strong international growth in infection prevention, and they may be concerned about their ability to effectively train their sales team for their launch of Lutonix BTK
Becton, Dickinson and Company is a medical technology company engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products. The company's segments are: BD Medical, which produces an array of medical technologies and devices that are used to help improve healthcare delivery in a range of settings; BD Life Sciences, which provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a range of infectious diseases, healthcare-associated infections and cancers; and BD Interventional, which provides vascular, urology, oncology and surgical products.
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