CR Bard’s Q4 Guidance

Shares of CR Bard ($BCR) are rallying in the wake of yesterday’s good earnings report. BCR has been as high as $137 today which is a 7.9% gain from yesterday’s close.

Here’s a look at what Bard had to say about guidance on their conference call (courtesy of Seeking Alpha):

Now moving to financial guidance. For Q4, we are expecting constant currency sales growth between 1% and 3%. This includes the impact of the Q4 acquisitions and the divestiture of EP, which essentially offset each other in the quarter.

Although our Q3 organic revenue growth was a bit stronger than that, we remain cautious about the sales environment, particularly in the U.S. We have seen the same survey data that you have that suggests no reliable improvement in physician office visits or hospital admissions, and we have some tough comps in Q4, specifically in biopsy and soft tissue repair. Of course, recognizing the Gore royalty as revenue now looks like a 2014 event.

From an EPS standpoint, excluding items affecting comparability, our 2013 guidance after our acquisition call on September 4, including the $0.10 of dilution from EP and the acquisitions and excluding Gore, was between $5.55 and $5.60. On the back of the Q3 beat, we are raising the full year 2013 adjusted EPS guidance to between $5.70 and $5.75 a share, which puts Q4 between $1.34 and $1.39 per share.

Q4 is obviously a little muddy with EP moving out of the P&L and the adjustments we are making around that, while at the same time integrating the new businesses and the start-up costs associated with those transactions. We’re very pleased that with all of these moving parts, excluding the Gore royalty, we’re on track to bring the year in where we said we would from both the sales and profitability perspectives.

Posted by on October 23rd, 2013 at 11:14 am


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