The three months ended June 30, BD's third fiscal quarter for 2018, is the "first clean [quarter] without any adjustments for US dispensing change / flu noise," Kumar wrote in a note on Monday, July 9. This, he said, "should provide comfort around organic growth accelerating to [the] 5.5%-6% range."
The U.S. dispensing business is part of the medication management solutions unit of the company's medical segment. On an earnings call last May, CFO Christopher R. Reidy said BD's U.S. dispensing business was "evolving from one-time hardware installations towards providing lifetime solutions, software and, ultimately, value."
Franklin Lakes, N.J.-based BD is scheduled to release results on Aug. 2. Analysts are projecting, on average, earnings per share of $2.86 on revenue of $4.25 billion, according to FactSet Research Systems Inc.
In other BD news, the company said Monday it has wrapped up its purchase of TVA Medical Inc., which develops minimally invasive vascular access solutions for patients that have chronic kidney disease requiring hemodialysis. Terms of the transaction were not made public.
The acquisition came on the heels of the completion of BD's $24 billion purchase of C.R. Bard Inc. in December.
BD shares on Monday morning were up 0.7% to $244.60. The stock is up 14.3% in 2018 and 23.7% over the past 12 months.
As for Medtronic, Kumar's other top pick, the Street sees the Dublin company's guidance of 4% to 4.5% organic revenue growth for the first quarter of fiscal 2019 as conservative, Kumar wrote.
"A headline organic rev beat with margin expansion on a reported basis should be enough to get the stock moving," he added.
Medtronic's first quarter of fiscal 2019 runs through July 27. Analysts have forecast, on average, EPS of $1.11 on revenue of $7.25 billion.
Medtronic shares on Monday were up 0.5% to $87.10. The stock is up 7.9% this year but down 1% over the past 12 months.