CR Bard Reaches New 52-Week High - Analyst Blog

Shares of N.J.-based medical technologies major CR Bard, Inc. BCR reached new 52-week high of $146.35 in mid-day trading yesterday. Shares of the company closed at $145.78 on the same day, representing a solid one-year return of 45.5%.

BCR has a market cap of $11.3 billion. Average volume of shares traded over the last three months stood at approximately 698.0K.

Shares of BCR started escalating following optimism triggered by promising 2014 guidance by the company and expected commercial success of Lutonix drug-coated balloon (DCB) upon its 2015-launch.

Despite posting a 16.5% decrease, 2013-fourth quarter earnings per share of $1.42 beat the Zacks Consensus Estimate by 3 cents. Revenues in the quarter increased 4% (both on reported and constant exchange rate or CER) to $791.3 million and comfortably outpaced the Zacks Consensus Estimate of $779.0 million.    

For full year 2013, net adjusted earnings decreased 12.0% to $5.78 per share but exceeded the Zacks Consensus Estimate of $5.75. Revenues in the year inched up 3% to $3,049.5 million (both on reported and constant currency basis), which is also higher than the Zacks Consensus Estimate of $3,036 million.
               
For 2014, BCR expects revenues to grow between 6 and 8% at CER, assuming revenues of $130 –$140 million from Gore royalties. The company expects to record a modest level of sales due to its multiyear transition supply agreement with Boston Scientific Corporation BSX, until the latter integrates manufacturing into their facilities.

Considering the product categories, BCR expects revenue growth between 5 and 8% for the Vascular line, 5 and 8% for the Urology line, 2 and 5% for the Oncology line, 7 and 10% for the surgical specialties line, and % and 10% in the other category.

For 2014, BCR expects adjusted earnings per share between $8.20 and $8.30, reflecting a year-over-year increase of 42 to 44%. The current Zacks Consensus Estimate of $8.25 lies within the guided range.

Currently, BCR carries a Zacks Rank #2 (Buy). Other medical instrument stocks that are also currently worth a look include Align Technology Inc. ALGN and Cardinal Health, Inc. CAH. Both of them also carry a Zacks Rank #2 (Buy).