Morgan Keegan Provides Color On BCR 4Q

C.R. Bard, Inc. (NYSE: BCR) reported 4Q results with in-line sales and EPS of $1.54 “versus our $1.50 estimate and Street consensus of $1.48,” Morgan Keegan reports.

“Although the company picked up its SG&A investment in the quarter, it achieved EPS outperformance by the reinstatement of the R&D tax credit and share repurchase,” Morgan Keegan writes. “Bard's ability to utilize acquisitions, operating expense leverage and share repurchase continues to yield predictable results, despite the challenging global healthcare markets.

“Although management did not note any improvements in surgical procedure growth, new products with higher ASPs, share gains in hernia, a solid gross margin of 63.3%, and strong execution drove the 4Q. There was no change to the company's 2011 guidance of 5%-8% revenue increase and 14% EPS growth.

“We continue to see Bard as a safe investment in a difficult healthcare tape. There is no change to our Outperform rating and $105 price target.”

C.R. Bard closed Monday at $94.35.