Baxter International Inc. (NYSE:BAX) Quarterly Earnings Preview
- Baxter International Inc. (NYSE:BAX) is expected to report an EPS of $0.81 and revenue of approximately $2.67 billion for its upcoming quarterly earnings.
- The company has a history of surpassing earnings expectations, with an average surprise of 3.62% over the past four quarters.
- Baxter's financial metrics indicate a high valuation with a P/E ratio of 145.54 and a debt-to-equity ratio of 1.68, highlighting its reliance on debt financing.
Baxter International Inc. (NYSE:BAX) is a global healthcare company that provides a broad portfolio of essential medical products, including infusion therapies, pharmaceuticals, and patient support systems. The company is set to release its quarterly earnings on February 20, 2025. Analysts expect an earnings per share (EPS) of $0.81 and revenue of approximately $2.67 billion.
Baxter has a history of surpassing earnings expectations, with an average surprise of 3.62% over the past four quarters. Despite challenges like Hurricane Helene, the company anticipates growth in its core segments to support recovery. For the fourth quarter of 2024, the consensus revenue estimate is $2.67 billion. Analysts have not revised their EPS estimates in the past 30 days. Stability in earnings projections can influence investor reactions and stock price movements, as highlighted by empirical studies.
Baxter's financial metrics reveal a high valuation with a P/E ratio of 145.54, indicating that investors are paying a premium for its earnings. The price-to-sales ratio of 1.12 suggests that investors pay $1.12 for every dollar of sales. The enterprise value to sales ratio is 1.97, reflecting the company's total valuation relative to its sales.
The company's debt-to-equity ratio is 1.68, showing significant reliance on debt financing. Baxter's current ratio of 1.43 indicates its ability to cover short-term liabilities with short-term assets. These financial metrics provide insight into the company's valuation and financial health, which are crucial for investors assessing Baxter's performance.
| Symbol | Price | %chg |
|---|---|---|
| 7741.T | 17195 | 0.87 |
| OMED.JK | 167 | -0.6 |
| 4543.T | 2722 | 2.22 |
| MARK.JK | 900 | 1.11 |
Baxter Jumps 8% on Q4 Earnings Beat, Strong 2025 Outlook
Baxter International (NYSE:BAX) surged over 8% intra-day today after delivering better-than-expected fourth-quarter results, driven by strong sales in its Pharmaceuticals and Medical Products & Therapies divisions.
For Q4, the medical technology company posted adjusted earnings per share of $0.58, exceeding the $0.52 consensus estimate. Revenue reached $2.75 billion, beating forecasts of $2.67 billion and marking a 1% year-over-year increase on a reported basis and 2% growth at constant currency.
The Pharmaceuticals segment led the quarter’s strength, with high single-digit sales growth, while Medical Products & Therapies remained stable at reported rates but saw low single-digit growth on a constant currency basis. Management highlighted momentum in achieving strategic milestones as the company continues its push for enhanced value across healthcare sectors.
For the full year 2024, Baxter generated $10.64 billion in sales from continuing operations, reflecting 3% growth both on a reported and constant currency basis. Adjusted EPS for the year came in at $1.89.
Looking ahead, Baxter provided a confident 2025 outlook, projecting Q1 adjusted EPS between $0.47 and $0.50. For the full year, the company expects EPS in the range of $2.45 to $2.55, with sales growth of 5-6%.
Stifel Nicolaus Analyst Sets New Price Target for Baxter International Inc. (BAX)
Rick Wise of Stifel Nicolaus Sets New Price Target for Baxter International Inc. (BAX:NYSE)
On May 2, 2024, Rick Wise of Stifel Nicolaus set a new price target for Baxter International Inc. (BAX:NYSE) at $44, marking a potential upside of approximately 19.81% from its price at the time of the announcement, which was $36.725. This adjustment was highlighted in a report published by TheFly, detailing the reasons behind the revised target from a previous $50. This new price target comes in the wake of Baxter International's recent financial performance, which has shown both strengths and areas of concern that investors and analysts are closely watching.
Baxter International reported quarterly earnings of $0.65 per share, surpassing the Zacks Consensus Estimate of $0.61 per share. This performance not only exceeded expectations but also marked an improvement from the $0.59 per share earned a year ago, showcasing an earnings surprise of 6.56%. Such consistent outperformance in earnings per share (EPS) is a testament to Baxter's operational efficiency and its ability to adapt to market conditions. This is further evidenced by the company's track record of beating consensus EPS estimates in three out of the last four quarters, highlighting its reliability in delivering shareholder value.
In terms of revenue, Baxter International announced figures of $3.59 billion for the quarter ending March 2024. This not only beat the Zacks Consensus Estimate by 1.20% but also indicated the company's capability to exceed revenue expectations consistently, having done so three times in the last four quarters. However, it's noteworthy that this quarter's revenue saw a slight decline from the $3.65 billion reported in the same period the previous year. This dip might raise concerns about growth sustainability, yet the company's ability to still outperform estimates may alleviate some of these worries.
Despite these financial achievements, Baxter International Inc. experienced a decrease in its stock price, closing at $36.91, which represents a decline of $3.43 or approximately 8.5%. This volatility in stock price, with fluctuations between a low of $36.20 and a high of $39.15 throughout the trading day, reflects the market's reaction to both the company's financial performance and broader economic factors. With a market capitalization of around $18.75 billion and a trading volume of 10,740,697 shares, Baxter International remains a significant player in the drug and medical device industry, even as it navigates through the challenges and opportunities presented by the market.
The setting of a new price target by Rick Wise of Stifel Nicolaus at $44, considering the company's recent performance and market position, suggests a belief in Baxter International's potential for recovery and growth. This optimism is grounded in the company's consistent ability to exceed earnings and revenue expectations, despite facing a slight revenue decline and stock price volatility. As Baxter International continues to adapt and evolve in the competitive landscape of the drug and medical device industry, investors and analysts alike will be keenly watching its next moves.
