Is A Surprise In Store For C.R. Bard (BCR) In Q1 Earnings?

Murray Hill, NJ-based CR Bard Inc. (NYSE:BCR) is scheduled to report first-quarter 2017 earnings, after market close on Apr 26.

Last quarter, the company reported adjusted earnings of $2.77, exceeding the Zacks Consensus Estimate by 4 cents. Also, the company’s earnings topped the Zacks Consensus Estimate in all the last four quarters with an average beat of 4.23%. 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 for Bard in the to-be-reported quarter as well. In this regard, Lutonix DCB is used to treat patients suffering from peripheral arterial disease (PAD). In fact, 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 the to-be-reported quarter.

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

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

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

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 $2.65. 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.

Stocks to Consider

Here are three 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:

Proteostasis Therapeutics (NASDAQ:PTI) has an Earnings ESP of +5.17% and a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.

BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) has an Earnings ESP of +31.58% and a Zacks Rank #2.

Hill-Rom Holdings, Inc. (NYSE:HRC) has an Earnings ESP of +1.27% and a Zacks Rank #2.

More Stock News: 8 Companies Verge on Apple-Like Run

Did you miss Apple (NASDAQ:AAPL)'s 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.

A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>