Becton, Dickinson’s (BDX) 4Q Earnings

Red flags from 4Q results that investors should be aware of

Becton, Dickinson (BDX) reported non-GAAP EPS of $2.98 per share for its fiscal first quarter ending in December. This was 30 cps ahead of the consensus. As is often the case with an earnings quality examination, our review of BDX does not turn up signs of fraudulent activity that make the company a prime short candidate. However, our analysis does show that the quarter was not as strong as it appeared on the surface in addition to revealing some warning signs that could impact results over the next few quarters. Our observations include a key expense item that was abnormally low and generated a material amount of EPS that may not be sustainable. Also, rising receivables could indicate that recent sales levels may not be sustainable either.

BDX holders and potential investors should be aware of these issues when analyzing their positions. Even if you don’t own BDX, this report demonstrates the type of insight that analysts can uncover with careful scrutiny of their companies’ financial statements.

If you have any questions or are interested in hearing about our institutional research service, please contact behindthenumbers@btnresearch.com.