C. R. Bard Earnings: Margins Expand, Yet Profit Slips

S&P 500 (NYSE:SPY) component C. R. Bard Inc. (NYSE:BCR) reported its results for the third quarter. C.R. Bard designs, makes, and sells diagnostic, medical, surgical, and patient care devices.

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C. R. Bard Inc. Earnings Cheat Sheet

Results: Net income for C. R. Bard Inc. fell to $129.3 million ($1.50 per share) vs. $130.1 million ($1.46 per share) a year earlier. This is a decline of 0.6% from the year-earlier quarter.

Revenue: Rose 0.5% to $722.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: C. R. Bard Inc. fell short of the mean analyst estimate of $1.63 per share. It fell short of the average revenue estimate of $753.9 million.

Quoting Management: Timothy M. Ring, chairman and chief executive officer, commented, “We delivered adjusted earnings per share at the top end of our guidance range this quarter, despite significant headwinds in the United States. Our international investments are shifting the mix of our portfolio to faster growing markets, which remains a key focus for us as we continue to improve our growth profile by investing in geographic and product markets with superior growth opportunities.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 2.4% to $742.6 million in the second quarter. The figure rose 4.2% in the first quarter from the year earlier and climbed 4.9% in the fourth quarter of the last fiscal year from the year-ago quarter.

For two quarters in a row, the company has come in under analyst estimates. In the second quarter, it missed expectations by 2 cents with net income of $1.62 versus a mean estimate of net income of $1.64 per share.

Margins increased in the second quarter after dropping the quarter before. Gross margins grew to 62.3%, up 0.5 percentage point from the year-earlier quarter. In the first quarter, the figure rose 0.5 percentage point to 61.5% from the year earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.75 a share to $1.77 over the last ninety days. The average estimate for the fiscal year is $6.63 per share, down from $6.68 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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