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C.R. Bard’s Vascular Segment Flowing Well despite Tougher Comps

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Aug. 18 2020, Updated 4:14 a.m. ET

2Q16 performance

C.R. Bard (BCR) reported ~$931.5 million in total revenues in 2Q16. Of that, ~$255.3 million was contributed by the company’s Vascular business segment. The segment accounted for about 27.4% of C.R. Bard’s total revenues.

These sales figures represent an ~6% YoY (year-over-year) increase in 2Q16 on an operational basis. The United States business grew by 3% whereas its international sales were up by ~12%.

The Surgical Graft and Stent Sales segment witnessed revenue growth of ~6% and 1% in 2Q16. This compares to the sales growth of around 3% and a decline of ~1% in the company’s Surgical Graft and Stent Sales business in the previous quarter.

However, C.R. Bard’s Endovascular business witnessed a sequential decline in revenue growth as the business generated sales growth of ~6% in 2Q16 compared to the 9% growth in business sales in 1Q16.

Medtronic (MDT) and St. Jude Medical (STJ) are C.R. Bard’s largest competitors in this segment. Investors seeking exposure to C.R. Bard can invest in the iShares MSCI USA Minimum Volatility ETF (USMV). BCR accounts for ~0.98% of USMV’s total holdings.

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Key growth drivers

C.R. Bard’s reported sales growth rates continue to be affected by the tougher comps in the previous year. This was due to the stocking events following the distribution agreement with Boston Scientific (BSX) for Lutonix.  Despite these tougher comps, C.R. Bard’s PTA (percutaneous transluminal angioplasty) products sales, including Lutonix, grew by ~10% in 2Q16.

However, according to the company’s performance metric—average daily sales—the company continues to maintain growth momentum and is expected to maintain its leadership position in the business segment.

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