On Mar 19, we have updated our research report on
CR Bard, Inc.
). 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.
), until the latter integrates manufacturing into their
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.
The Cooper Companies Inc.
). Both of them also carry a Zacks Rank #2 (Buy).
BARD C R INC (BCR): Free Stock Analysis
BOSTON SCIENTIF (BSX): Free Stock Analysis
CARDINAL HEALTH (CAH): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
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