Will CR Bard Miss Earnings this Quarter? - Analyst Blog
22 Aprile 2013 - 4:30PM
Zacks
CR Bard Inc. (BCR)
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
margin.
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 concern.
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.
Earnings Whispers?
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 revisions.
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. (CVH), Earnings ESP of
+3.80% and a Zacks Rank #2 (Buy)
Haemonetics Corporation (HAE), Earnings ESP of
+2.17% and a Zacks Rank #3 (Hold)
Covidien plc (COV), Earnings ESP of +0.91% and a
Zacks Rank #3 (Hold)
BARD C R INC (BCR): Free Stock Analysis Report
COVIDIEN PLC (COV): Free Stock Analysis Report
COVENTRY HLTHCR (CVH): Free Stock Analysis Report
HAEMONETICS CP (HAE): Free Stock Analysis Report
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