Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0781
    -0.0013 (-0.12%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2623
    +0.0001 (+0.01%)
     
  • USD/JPY

    151.2820
    -0.0900 (-0.06%)
     
  • Bitcoin USD

    70,351.33
    +683.93 (+0.98%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,347.76
    +179.69 (+0.45%)
     

Balanced Risk-Reward for CR Bard

On Mar 19, we have updated our research report on CR Bard, Inc. (BCR). BCR’s emerging markets continued to be a strong source of revenue generation. However, we remain concerned about the stringent sales environment in the U.S.

BCR’s adjusted earnings per share of $1.42 beat the Zacks Consensus Estimate by 3 cents, despite being lower than the year-ago level. On the back of better-than-anticipated fourth-quarter results, the company raised its earnings guidance for the full-year 2014. The company expects adjusted earnings per share between $8.20 and $8.30, up 42 to 44% from 2013.

Revenues in the quarter increased 4% (both on reported and constant exchange rate) to $791.3 million and comfortably outpaced the Zacks Consensus Estimate of $779.0 million.

On a geographic basis, revenues in the U.S. grew 4% to $517.7 million, while revenues outside the U.S. rose 3% to $273.6 million. Revenues from the emerging markets represented about 8.5% of BCR’s total revenue in the fourth quarter.

For 2014, BCR expects revenues to grow between 6% and 8% at CER, assuming revenues of $130 million–$140 million from Gore royalties. The company expects to record a modest level of sales due to its multiyear transition supply agreement with Boston Scientific Corp. (BSX), until the latter integrates manufacturing into their facilities.

BCR’s strategy to introduce its products in the emerging markets is delivering accretive returns, as the company continues with its sturdy performance in the international markets. BCR is heavily investing in certain countries in Europe, Asia and Latin America. Moreover, Japan is also considered to be a major growth driver for the company.

However, BCR is exposed to competition from large manufacturers with multiple business lines, to smaller manufacturers, which offer a limited selection of products, and to a limited extent, reprocessors of single-use medical devices.

Currently, BCR retains a Zacks Rank #2 (Buy).

Other Stocks to Pick

Other players in the medical instruments sector that currently worth a look include Cardinal Health, Inc. (CAH) and The Cooper Companies Inc. (COO). Both of them also carry a Zacks Rank #2 (Buy).

Read the Full Research Report on BCR
Read the Full Research Report on BSX
Read the Full Research Report on CAH
Read the Full Research Report on COO


Zacks Investment Research

Advertisement