Uncovering Potential: Baxter Intl's Earnings Preview

Baxter Intl BAX is preparing to release its quarterly earnings on Friday, 2024-11-08. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Baxter Intl to report an earnings per share (EPS) of $0.78.

Baxter Intl bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Historical Earnings Performance

The company's EPS beat by $0.02 in the last quarter, leading to a 0.89% drop in the share price on the following day.

Here's a look at Baxter Intl's past performance and the resulting price change:

Performance of Baxter Intl Shares

Shares of Baxter Intl were trading at $36.11 as of November 06. Over the last 52-week period, shares are up 8.5%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Baxter Intl

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Baxter Intl.

Baxter Intl has received a total of 1 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $40.0, the consensus suggests a potential 10.77% upside.

Peer Ratings Comparison

In this analysis, we delve into the analyst ratings and average 1-year price targets of Hologic, Insulet and Zimmer Biomet Holdings, three key industry players, offering insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Hologic is favoring an Neutral trajectory, with an average 1-year price target of $88.67, suggesting a potential 145.56% upside.
• The prevailing sentiment among analysts is an Buy trajectory for Insulet, with an average 1-year price target of $260.22, implying a potential 620.63% upside.
• The consensus outlook from analysts is an Neutral trajectory for Zimmer Biomet Holdings, with an average 1-year price target of $119.27, indicating a potential 230.3% upside.

Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Hologic, Insulet and Zimmer Biomet Holdings, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Baxter Intl ranks in the middle among peers for consensus rating. It ranks at the bottom for revenue growth. It ranks at the top for gross profit. It ranks at the bottom for return on equity.

About Baxter Intl

Baxter offers a variety of medical instruments and supplies to caregivers. It enhanced its portfolio of hospital-focused offerings by acquiring Hillrom in late 2021, which added basic equipment, including hospital beds, to the portfolio, although about half of Hillrom's revenue comes from more digitally connected offerings like its smart beds and Voalte medical communications app. From its legacy operations, Baxter sells a variety of injectable therapies for use in care settings, such as IV pumps, administrative sets, and solutions; nutritional products; and surgical sealants and hemostatic agents. It has signed an agreement to sell its kidney care segment by early 2025.

Financial Insights: Baxter Intl

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Baxter Intl's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.83% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -8.24%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Baxter Intl's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -3.97%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Baxter Intl's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.16%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 1.75, Baxter Intl faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Baxter Intl visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.