C. R. Bard Earnings: Shrinking Margins for Fifth Consecutive Quarter

S&P 500 (NYSE:SPY) component C. R. Bard Inc. (NYSE:BCR) reported its results for the second 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: Reported a profit of $133.9 million ($1.54 per diluted share) in the quarter. C. R. Bard Inc. had a net loss of $47.8 million or a loss 55 cents per share in the year-earlier quarter.

Revenue: Rose 2.4% to $742.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: C. R. Bard Inc. fell short of the mean analyst estimate of $1.64 per share. Analysts were expecting revenue of $753.9 million.

Quoting Management: Timothy M. Ring, chairman and chief executive officer, commented, “The economic climate remains challenging, especially in the United States and Europe. Navigating the short term while positioning for the long term is how we have remained strong and successful for over a century. As we have said, we believe the medical device companies who thrive in the future will provide clinically effective products at a value that benefits the entire healthcare system. Our teams are well positioned to identify unmet needs and provide successful solutions for our customers, and we see significant long-term opportunity as we continue to execute on our strategy.”

Key Stats:

Last quarter was the fifth in a row that the company saw shrinking gross margins, as they fell 0.5 percentage point from the year-earlier quarter to 61.5%. Over that time, margins have contracted on average 0.7 percentage point per quarter on a year-over-year basis.

Revenue has risen for the last four quarters. Revenue increased 4.2% to $730 million in the first quarter. The figure rose 4.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 6% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 4 cents, and in the fourth quarter of the last fiscal year, it was ahead by 2 cents.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the third quarter is $1.67 per share, dropping from $1.68 a month ago. The average estimate for the fiscal year is $6.68 per share, a rise from $6.66 ninety days ago.

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

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