CR Bard Inc.
) is set to report first-quarter 2013 results after the market
closes on Tuesday, Apr 23. Let's see how things are shaping up
prior to the announcement.
In the last quarter, the medical devices maker posted a 1.80%
positive earnings surprise. Despite its underperformance in the
U.S. and dilution from the Neomend acquisition, the company was
able to expand in the emerging markets and improve its operating
Factors to Consider this Quarter
Bard is struggling to enhance its top line mainly due to sluggish
sales in the U.S. market. Increasing competition and
pricing/volume pressure in the U.S. economy along with the
expected dilution from an expensive acquisition remain areas of
Although the company is gaining traction in the emerging markets,
we remain on the sidelines due to the pertinent uncertainties in
the global economy. However, Bard's well-diversified end markets
as well as a vast product portfolio insulate it from fluctuations
in any single therapeutic category.
Further, we wait to see how CR Bard utilizes the expected
benefits from the Gore litigation lawsuit.
Our proven model does not conclusively show that Bard will likely
beat earnings estimates this quarter. That is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) as well as a Zacks Rank of #1, 2 or 3 for this to happen. This
is not the case here as you will see below.
Zacks Earnings ESP
: The Most Accurate Estimate stands at $1.43, while the
Zacks Consensus Estimate is also at $1.43. This comes to a
difference of 0.00%.
Zacks Rank #4 (Sell)
: Bard carries a Zacks Rank #4 (Sell), which lowers the
predictive power of ESP. This is because the Zacks Rank #4 when
combined with a 0.00% ESP makes surprise prediction difficult.
Moreover, we caution against stocks with Zacks Ranks of #4 and #5
(Sell rated stocks) before going into the earnings announcement,
especially when the company is experiencing negative estimate
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that these have the right combination of ingredients
to post an earnings beat this quarter:
Coventry Health Care Inc.
), Earnings ESP of +3.80% and a Zacks Rank #2 (Buy)
), Earnings ESP of +2.17% and a Zacks Rank #3 (Hold)
), Earnings ESP of +0.91% and a Zacks Rank #3 (Hold)
BARD C R INC (BCR): Free Stock Analysis
COVIDIEN PLC (COV): Free Stock Analysis
COVENTRY HLTHCR (CVH): Free Stock Analysis
HAEMONETICS CP (HAE): Free Stock Analysis
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