Murray Hill, N.J.-based Bard posted profits of $93.2 million, or $1.15 per share, on sales of $758.0 million for the 3 months ended Sept. 30. Although that’s a profit slide of 27.9% on sales growth of 4.9% compared with Q3 2012, adjusted earnings per share reached $1.50 – handily beating The Street’s $1.40 forecast.
The news pushed BCR shares to a $129.60 open today, up 2.1% over yesterday’s close and a 52-week high. Shares were trading at $131.58 apiece as of about 9:35 a.m., up 3.6%.
"We are pleased with the results this quarter, exceeding expectations on both the top and bottom line. Consistent with our plan, we continue to focus on shifting the mix of the portfolio to faster revenue growth through targeted investments and acquisitions. Our business development activities, together with the results this quarter and other recent events, represent important steps in helping us improve the growth profile of the business going forward," chairman & CEO Timothy Ring said in prepared remarks.
Ring told analysts during a conference call that the medical device company expects W.L. Gore & Assoc. to appeal last week’s court decision in their stent graft patent infringement war that set the stage for more than $800 million in damages, legal fees and royalties for Bard.
"We expect Gore to appeal those rulings, so the process could potentially move back to the court of appeals once again," Ring said. "As we told you, forecasting precise timing on this case is difficult, but the results to this point lead us to believe that it’s really a question of when, and not if, on the release of the funds for the base infringement and the continuing royalty stream."
CFO Christopher Holland added that Bard could have the infringement award in hand by the end of January 2014.
"So assuming that is the case and, again, we think that’s a reasonable assumption sitting here on October 22, that would allow us to essentially recognize 4 quarters worth of royalty in 2014. I think being more precise than that is dangerous as we’ve, I think, learned with this case. But we think that’s a very reasonable assumption," Holland said.
Bard now expects adjusted EPS of $5.70-$5.75, up from $5.55 to $5.60, Holland said, on sales growth of 1%-3% excluding foreign exchange effects.