Medical technology company Becton, Dickinson and Co. (BDX) is slated to release its fourth quarter results before the market opens Wednesday. The consensus estimate calls for higher earnings and revenues than the year-ago period.
Analysts polled by Thomson Reuters expect the company to report earnings of $1.24 per share on revenues of $1.85 billion. Analysts' estimates typically exclude special items. In the year-ago period, the company posted earnings from continuing operations of $1.13 per share on revenues of $1.84 billion.
For the full year, the company now sees earnings from continuing operations of between $4.89 and $4.93 per share, or, $4.92 to $4.96 per share, excluding items. GAAP net earnings are estimated to be in the range of $4.93 - $4.97 per share. The earlier forecast provided in July was for earnings from continuing operations of between $4.89 and $4.93 per share. Analysts are looking for earnings of $4.96 per share on revenues of $7.13 billion for the full year.
For the previous quarter, Becton, Dickinson reported higher profit of $341.0 million or $$1.42 per share, compared to $297.1 million or $1.22 per share in the prior-year period. However, quarterly revenues dropped 1.6% to $1.82 billion from the previous year's revenue of $1.85 billion.
While releasing third-quarter results, the Franklin Lakes, New Jersey-based company announced sale of assets associated with its Home Healthcare product line to 3M, including product inventory, brand names and manufacturing associated with ACE, Tensor, Bauer & Black and Tru-Fit products, and thermometers. The company expects to record a gain on the sale of about 5 cents earnings per share from discontinued operations in the fourth quarter.
Among Becton, Dickinson's rivals, Abbott Laboratories (ABT) posted third-quarter net income of $1.48 billion or $0.95 per share, up from $1.09 billion or $0.69 per share in the prior-year quarter, aided by strong sales of its arthritis drug Humira and nutritional products. Net sales increased 3.5% to $7.76 billion from $7.50 billion in the same quarter of last year.
Another peer, Baxter International Inc. (BAX) reported higher profit for the third quarter that totaled $530 million or $0.87 per share, compared to $472 million or $0.74 per share a year ago, helped by margin expansion and lower expenses, despite near-flat revenues. Net sales dropped to $3.145 billion from $3.151 billion in the previous year. Excluding the impact of foreign currency, Baxter's worldwide sales increased 6%.
For the fourth quarter of 2009, Baxter expects earnings to range between $1.02 and $1.04 per share, before any special items. Baxter expects fourth-quarter sales growth, excluding the impact of foreign currency, of 6% - 8%. Reported sales including the impact of foreign currency are expected to increase 8% - 10% in the fourth quarter over the prior-year period. Baxter raised its full year 2009 earnings, before any special items, outlook to a range of $3.79 - $3.81 per share from the prior range of $3.76 - $3.80 per share.
Becton, Dickson shares, which have been trading between $58.14 and $77.11 in the past 52 weeks, closed Tuesday's trading session at $69.91, up 96 cents or 1.39%, on a volume of 3.07 million shares.
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