Becton Dickinson (BDX) raised its full-year earnings guidance as the medical device maker's third-quarter results exceeded Wall Street's estimates amid revenue gains across all divisions.
The company said Thursday it now expects adjusted per-share earnings of $12.62 to $12.72 for fiscal 2026, lifting the bottom end of the prior outlook from $12.52. The new range's $12.67 middle point compares with the FactSet-polled consensus estimate of $12.61.
While Becton Dickinson maintained its low single-digit plus revenue growth guidance, the company said that topline is expected "toward the high end" of its forecast. Analysts are looking for full-year sales of $19.22 billion, implying a 12% drop year over year.
The guidance comes after Becton Dickinson's third-quarter performance reflected "commercial momentum" across its key growth platforms, Chief Executive Tom Polen said on the earnings call, according to a FactSet transcript.
The stock was up 4% in Thursday trade, taking its year-to-date gain to 16%.
Becton Dickinson's adjusted EPS for the quarter ended June 30 rose to $3.23 from $3.08 a year earlier and surpassed the Street's $3.14 estimate. Revenue grew 5.4% to $4.98 billion, while analysts projected sales of $4.89 billion.
Revenue in the medical essentials division increased 4.5% to $1.68 billion, while sales in the interventional business grew 6.4% to $1.41 billion. Connected care revenue improved 4.9%, while biopharm systems delivered 6.6% growth.
Becton Dickinson's bigger rival, Abbott Laboratories (ABT), lifted its full-year earnings outlook last month as its second-quarter results rose above market estimates. Thermo Fisher Scientific (TMO) also posted stronger-than-expected quarterly results.
UBS Securities, which initiated coverage of Becton Dickinson with a buy recommendation in July, expects mid-single-digit growth at the company in the medium term. That should support a stock re-rating, the brokerage said in a July 28 note.
UBS sees key headwinds, such as weak demand for vaccines, are largely transitory that should begin to ease in 2027.
"As transitory headwinds fade, we expect growth to re-accelerate, supported by disciplined capital allocation, deleveraging, and share repurchases," UBS analysts including Patrick Wood wrote in the note. "With proven pricing power and limited inflation exposure, we believe the strength of the new franchise will become increasingly evident as execution improves and confidence rebuilds."
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