C. R. Bard Inc. (BCR): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
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.


Overview:

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 distributors.

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 products.

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 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 (16.7%): 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) products.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




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