BDX - Embedded Expectations Analysis - 2019 09 17
Becton, Dickinson and Company (BDX:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 22.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about their costs, their ability to reach guidance, and their positioning in China.Specifically, management may lack confidence in their ability to get PMA through FDA approval, and they may be concerned about the progress they are making towards their 2020 guidance. Furthermore, they may be concerned about their positioning in China, and they appear concerned about the sustainability of recent revenue growth in their Life Sciences segment. Moreover, they may lack confidence in their ability to continue innovating in Urology and Critical Care, and they appear concerned about the sustainability of recent improvements in their Medical and Interventional segments in the US. Finally, management may be concerned about ongoing tax and FX headwinds, and they may lack confidence in their ability to continue driving cost synergies through their Bard acquisition.
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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