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C.R. Bard (BCR) Beats Q1 Earnings & Revenues, FY17 View Up

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Murray Hill, NJ-based C.R. Bard Inc. reported adjusted earnings of $2.87 in the first quarter of 2017, exceeding the Zacks Consensus Estimate of $2.65. Adjusted earnings also improved 22.6% on year-over-year basis.

Net sales during the first quarter increased from $874 million on a year-over-year basis to $938.8 million. The figure was also better than the Zacks Consensus Estimate of $915 million. Excluding the impact of foreign exchange, first-quarter 2017 net sales improved 8% on a year-over-year basis.

C.R. Bard, Inc. Price, Consensus and EPS Surprise

 

C.R. Bard, Inc. Price, Consensus and EPS Surprise | C.R. Bard, Inc. Quote

C.R. Bard to Get Acquired

On Apr 23, Becton, Dickinson and Company (BDX - Free Report) , a leading global medical technology company, announced that it will acquire C.R. Bard for $24 billion ($317 per C.R. Bard common share in cash and stock).

The agreement is expected to close by fall 2017.

We believe the latest development will provide benefits of medication management and infection prevention to C.R. Bard customers and bolster its foothold in the global medical devices market, which is expected to reach a worth of $543.9 billion by 2020.

In this regard, C.R. Bard registered more than 500 products internationally in full-year 2016.

Quarter Highlights

U.S.net sales rose 5% year over year to $657.2 million. International sales increased 14% to $281.6 million.

Without foreign exchange headwinds, first-quarter 2017 net sales outside the U.S. rose 17% on a year-over-year basis.

Segment Details

Vascular product: Sales at this segment increased 7% year over year (up 8% at cc) to $256.6 million.

Urology: Sales increased 10% on a year-over-year basis (up 11% at cc) to $237.7 million in the urology segment. 

Oncology: Sales at this segment were up 6% (up 6% at cc) year over year to $255.5 million.

Surgical Specialties: Sales were up 9% (up 9% at cc) year over year to $165.1 million.

Sales from other product lines increased 2% on a year-over-year basis at cc to almost $23 million.

Guidance

For full-year 2017, adjusted earnings per share (after adjusting for amortization of intangibles) are projected between $11.65 and $11.90, up from the previously provided band of $11.45 and $11.75. This represents growth in the range of 13% to 16%, up from 11% to 14% projected earlier.

C.R. Bard expects net sales growth of 5% to 6% on a reported basis, up from the previously provided guidance range of 4% to 5%. Excluding the impact of foreign exchange, net sales are projected to increase between 6% and 7% from the prior year.

For the second quarter of 2017, net sales are expected to improve in the range of 4% to 5% on an as-reported basis. Excluding the impact of foreign exchange, second-quarter 2017 net sales are forecasted to increase in the range of 6% and 7% on a year-over-year basis.

Adjusted earnings per share (after adjusting for amortization of intangibles and relevant items) are likely to come in between $2.75 and $2.85. This represents growth in the band of 8% and 12% on a year-over-year basis.

Key Picks

Currently, C.R. Bard carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) and Sunshine Heart Inc . Notably, both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen has a long-term expected earnings growth rate of 17.50%. The stock represents an impressive one-year return of 60%.

Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of roughly 22%.

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