CR Bard Inc (BCR) is expected to announce third-quarter 2104 numbers on Oct 22. Last quarter, the company posted a positive surprise of 3.0%. Let’s see how things are building up for this quarter.
The first half of 2014 has been decent for the catheter maker from the perspective of both sales and earnings. Meanwhile, the adjusted earnings in the second quarter exceeded the guidance provided by management. Management expects continued improvement in organic sales through the rest of the year.
Notably, CR Bard won a U.S. court ruling in 2012 that upholds a $371 million patent-infringement judgment against W.L. Gore & Associates Inc. However, there is potential variability in the contribution from the Gore royalty relative to their expectations.
Earnings Whispers?
Furthermore, our proven model does not conclusively show that CR Bard is likely to beat earnings this quarter as it does not have the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, or at least 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $2.10.
Zacks Rank: CR Bard carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some companies you may like to consider as our model shows they possess the right combination of elements to post an earnings beat this quarter:
Abaxis, Inc. (ABAX) with Earnings ESP of 4.55% and a Zacks Rank #2 (Buy).
Edwards Lifesciences Corp. (EW) with Earnings ESP of 1.41% and a Zacks Rank #2 (Buy).
Heartware International Inc. (HTWR) with Earnings ESP of 21.21% and a Zacks Rank #3 (Hold).
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