Bard Outperforms – Analyst Blog

C.R. Bard, Inc. (BCR) has reported first quarter fiscal 2010 earnings per share of $1.25, outperforming the Zacks Consensus Estimate by a cent and the year-ago earnings per share by eight cents.

Bard has witnessed an expansion in revenues in the first quarter. Total revenues increased 9% year over year to $650.8 million. Barring a favorable foreign currency translation, net sales increased 6% year over year. Growth was registered across all major business segments.

Urology sales increased 7% year over year to $174.3 million. Oncology and Vascular sales increased 8% and 10% year over year to $174.0 million and $172.4 million, respectively. Surgical Specialties sales increased 16% year over year to $109.2 million. Other revenues declined 1% year over year to $20.9 million. Geographically, Bard’s domestic sales contributed 70% to total revenues and increased 8% year over year. International sales increased 13% year over year.

Gross margin declined 120 basis points (bps) year over year to 61.2%. Marketing, selling and administrative expenses as a percentage of sales increased 10 bps year over year to 27.6%. Research and Development (R&D) expenses as a percentage of sales increased 10 bps year over year to 6.2%. Operating margin increased 20 bps year over year to 26.9%.

Bard designs, manufactures, packages, distributes, and sells medical, surgical, diagnostic, and patient care devices worldwide. The company faces a mix of competitors ranging from large manufacturers with multiple business lines like Boston Scientific Corporation (BSX) and Johnson & Johnson (JNJ) to smaller manufacturers that offer a limited selection of products like Angiodynamics, Inc. (ANGO).