C.R. Bard (BCR) Well Poised To Beat Q2 Earnings Estimates?

We expect C.R. Bard Inc. (NYSE:BCR) to beat expectations when it reports second-quarter 2016 results on Jul 26.

Why a Likely Positive Surprise?

Our proven model shows that C.R. Bard is likely to beat earnings because it has the right combination of two key ingredients.

Zacks ESP: C.R. Bard’s Earnings ESP stands at +0.41%. This is because the company’s Most Accurate estimate is $2.47, whereas the Zacks Consensus Estimate is pegged at $2.46. A favorable ESP serves as a meaningful and leading indicator of a likely positive surprise.

Zacks Rank: C.R. Bard currently has a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.

The combination of C.R. Bard’s Zacks Rank #2 and +0.41% ESP makes us reasonably optimistic of an earnings beat.

What's Driving the Better-than-Expected Earnings?

For the second-quarter 2016, sales growth is anticipated between 6.5% and 8%, at cc. On an organic basis, management estimates sales growth in the 5.5% to 6% range. Adjusted earnings are projected in the range of $2.43 to $2.47 per share. Management expects gross margin to expand more than 100 basis points on a year-over-year basis.

We believe that the growing adoption of Lutonix drug coated-balloon (DCB) will continue to be the key growth catalyst for C.R. Bard. Lutonix DCB, an angioplasty balloon coated with a therapeutic dose of the drug paclitaxel, is used to treat patients suffering from peripheral arterial disease (PAD).

Improving reimbursement rates also bode well for the product. Moreover, the company's continued investments in the emerging markets has strengthened its position globally and is increasingly delivering accretive returns.

Stocks to Consider

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

Nektar Therapeutics (NASDAQ:NKTR) with an earnings ESP of +50.00% and a Zacks Rank #1.

Zoetis Inc. (NYSE:ZTS) with an earnings ESP of +2.27% and a Zacks Rank #1.

CytRx Corp. (NASDAQ:CYTR) with an earnings ESP of +15.00% and a Zacks Rank #1.