C. R. Bard reported impressive third-quarter results, wherein both
earnings and revenues comfortably surpassed the Zacks Consensus
Estimate and also increased year over year. We are also encouraged
by the company's raised earnings guidance for 2014. The strategic
investment plan announced by the company in the beginning of 2013
has begun to generate returns and C. R. Bard continues to focus on
executing its plans with the objective of improving revenue growth
and profitability. Management also expects enhanced revenue growth
from the emerging markets which we believe reflect immense
potential. Recently, FDA cleared Lutonix DCB for percutaneous
transluminal angioplasty (PTA) making it the first and only
FDA-approved DCB in the U.S. We view this approval as a key growth
catalyst for the company. Nevertheless, stiff competition and
sluggish macro-environment are major headwinds. Thus, we maintain
our Neutral recommendation and set a price target of $175.00.
Headquartered in Murray Hill, NJ, C. R. Bard Inc. (BCR) is
engaged in the design, manufacture, packaging, distribution, and
marketing of medical, surgical, diagnostic, and patient care
devices worldwide. Bard's products are sold to hospitals,
individual health care professionals, extended care facilities, and
alternate site facilities using a combination of direct sales and
C. R. Bard reported net sales of $3.05 billion in 2013. In the
nine months ended Sep 30, 2014, net sales increased 8.8% year over
year to $2.46 billion. The company offers its products around the
concept of disease state management under four major product
groups: Vascular, Urology, Oncology, and Surgical Specialty
Vascular (27.8% of net sales at the end of nine months): Through
this division, the company develops and markets a vast range of
products for the peripheral vascular market. Its minimally invasive
vascular products include peripheral angioplasty stents, catheters,
guidewires, introducers, vena cava filters, biopsy devices and
implantable vascular grafts. In Nov 2013, the company divested its
Electrophysiology (EP) division.
Urology (25.2%): This division offers basic drainage products
(including urinary tract infection catheters), continence products
(including surgical sling products) and urological specialty
Oncology (27.4%): Oncology products cover a wide range of
devices, which include specialty access catheters such as
peripherally inserted central catheters or PICC, ports and biopsy
devices. These are used in the treatment and management of multiple
cancers and other diseases and disorders.
Surgical Specialties (16.7%): These products include mesh for
vessel and hernia repair, irrigation devices for orthopedic,
laparoscopic and gynecological procedures and products for topical
hemostasis. With the acquisition of Neomend (2012), surgical
sealants and anti-adhesive products used during surgical procedures
were added to the product portfolio.
Other (2.9%): This product group includes irrigation, wound
drainage and certain original equipment manufacturer (OEM)
C. R. Bard Inc. (BCR): Read the Full Research
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