Morgan Stanley Previews Becton, Dickinson and Co. Ahead Of Earnings

Morgan Stanley analyst David Lewis previewed Becton, Dickinson and Co. BDX ahead of the company's fourth quarter earnings results.

Lewis noted Becton's management has reiterated its fiscal 2014 guidance on the CareFusion announcement, which he says likely limits the fourth quarter's headline risk. Lewis is predicting a EPS of $1.66 for Brecton's fourth quarter.

Looking ahead, Lewis is predicting EPS accretion of 24 and 31 percent, respectively, in fiscal 2016 and 2017. This is based on the assumption of $250 million in synergies, 50-100 bps of tax improvements and a share creep of ~$3 million due to buyback suspension until late fiscal 2017. For 2016 and 2017 Lewis is predicting an EPS of $8.45 and $9.44, respectively.

Shares of Brecton, Dickinson and CO. are trading relatively stable amid the note.