Is A Surprise In Store For CR Bard (BCR) In Q2 Earnings?

Murray Hill, NJ-based CR Bard Inc. (NYSE:BCR) is scheduled to report second-quarter 2017 earnings, after market close on Jul 25.

Last quarter, the company reported adjusted earnings of $2.87, exceeding the Zacks Consensus Estimate by 22 cents. Also, the company’s earnings topped the Zacks Consensus Estimate in all the last four quarters with an average beat of 4.34%.

Delving deeper into the fundamentals of the stock, let’s see how things are shaping up prior to this release.

Factors at Play

We believe that the growing adoption of the company’s flagship Lutonix drug coated-balloon (DCB) will continue to be the key growth catalyst in the to-be-reported quarter. In this regard, Lutonix DCB is used to treat patients suffering from peripheral arterial disease (PAD). Within the Endovascular business, peripheral PTA line sales are solely driven by accelerating demand for the Lutonix DCB in the U.S. We expect to see this product to significantly contribute to the company’s top line in this quarter.

Furthermore, the company's investments in emerging markets have strengthened its position internationally. We are also upbeat on the solid contribution from the company’s vascular product line. The urology and oncology segments are likely to drive second-quarter sales.

On the flip side, a challenging Med-tech environment, especially in the hernia fixation and peripheral stent businesses raises concerns. The company continues to witness significant pricing pressure as well. Also, unfavorable foreign currency will continue to hurt top- and bottom-line growth.

Furthermore, uncertainties associated with the possibilities of a repeal of the Affordable Care Act under President Trump add to the company’s concerns.

Earnings Whispers

Our quantitative model doesn’t point to an earnings beat either this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: The Earnings ESP for CR Bard is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $2.84. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CR Bard carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.

We caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

C.R. Bard, Inc. Price and EPS Surprise

C.R. Bard, Inc. Price and EPS Surprise | C.R. Bard, Inc. Quote

Stocks to Consider

Here are a few companies you may want to consider as our proven model shows that they have the right combination of elements to post an earnings beat this quarter:

Becton, Dickinson and Company (NYSE:BDX) has an Earnings ESP of +0.41% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology, Inc. (NASDAQ:ALGN) has an Earnings ESP of +1.37% and holds a Zacks Rank #2.

Stryker Corporation (NYSE:SYK) has an Earnings ESP of +0.66% and carries a Zacks Rank #2.

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