CR Bard's adjusted earnings rose 18.6% to $1.91 per share for the
2014-first quarter and beat the Zacks Consensus Estimate by $0.05
as well as its own guidance. Revenues grew 8.0% and comfortably
outpaced the mark. On the back of better results, the company
retained its bottom line guidance for 2014. It has also raised its
dividend and expanded share repurchase program recently. Potential
benefits from the Gore litigation are now expected in 2014.
However, we remain concerned about the stringent sales environment
in the U.S. Moreover, some of Bard's businesses are experiencing
significant pricing and competitive pressures and low-single digit
growth in international markets. As a result, we reiterate our
Neutral recommendation on CR Bard and set a target of $153.00.
Headquartered in Murray Hill, N.J., C. R. Bard Inc. (BCR) is
engaged in the design, manufacture, packaging, distribution, and
marketing of medical, surgical, diagnostic, and patient care
devices worldwide. The company became publicly traded in 1963 and
has approximately 12,200 employees. CR Bard serves hospitals,
physicians, and clinics in the U.S., Europe, and Japan.
CR 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 distributors.
The company has a mix of competitors ranging from large
manufacturers with multiple business lines like Boston Scientific
Corp. (BSX) and Johnson & Johnson (JNJ) to smaller
manufacturers that offer a limited selection of products like
Angiodynamics Inc. (ANGO).
CR Bard offers its products around the concept of disease state
management under four major product groups: Vascular, Urology,
Oncology, and Surgical Specialty products.
Vascular (27.4% of total revenue in the 2014-first quarter):
Through its Vascular 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, electrophysiology products and implantable vascular
Urology (25.2%): The company's Urology offerings include basic
drainage products (including urinary tract infection catheters),
continence products (including surgical sling products) and
urological specialty products.
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 (16.9%): 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, the business included
new products in its portfolio viz. surgical sealants and
anti-adhesive products used during surgical procedures. The
remaining 3.1% of revenues is generated from the Other Product
CR Bard Inc. (BCR): Read the Full Research
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