Medical technologies major CR Bard Inc. ( BCR ) revealed that its board of directors has authorized the repurchase of another $500 million of the company's common stock. In addition, the company raised the quarterly dividend on its stock by 5% to 22 cents per share. However, both the news could not entice investors as shares fell 2.6% in the last three trading sessions.
Prior to this, BCR authorized the repurchase of $500 million of its common stock on Jan 30, 2014. Of the total amount authorized at that time, roughly $30 million worth of shares are left for repurchase till date. In the first quarter of the year, BCR repurchased 1.8 million shares for $78.5 million.
BCR follows a policy of dividend raise (generally by a penny) every year. The increased dividend is payable on Aug 1, 2014 to shareholders of record at the close of business on Jul 21, 2014.
BCR posted an 18.6% rise in adjusted earnings per share to $1.91 for the first quarter of 2014 from $1.61 in the prior-year quarter. Earnings per share surpassed the Zacks Consensus Estimate of $1.86 as well as the company's previously announced guidance range of $1.83 to $1.87.
Revenues grew 8.0% both in terms of reported and constant currency on a year-over-year basis to $799.3 million. Revenues surpassed the Zacks Consensus Estimate of $792 million while revenue growth exceeded the company's previously announced guidance of 6 to 7%.
BCR's operating cash flow declined nearly 19.0% to $114.3 million in the first quarter of 2014. The decrease can be attributable to loss on sale of investments and higher taxes.
Moving ahead, BCR expects constant currency sales growth between 6 and 8% in the second quarter of 2014. On the earnings front, the company expects adjusted earnings in the range of $1.98 to $2.02 a share. The current Zacks Consensus Estimate of $2.00 for the quarter lies within the guided range.
BCR reiterated its adjusted EPS guidance between $8.20 and $8.30 for the full year. The current Zacks Consensus Estimate of $8.26 lies within the guided range.
BCR currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the medical/dental supply industry include Bio-Reference Laboratories Inc. ( BRLI ), Milestone Scientific Inc. ( MLSS ) and Steris Corp. ( STE ). All these stocks carry a Zacks Rank #2 (Buy).
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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 Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
