Baxter International Inc.

Baxter International Inc. (BAX - Analyst Report) is seeing upbeat estimates ahead of announcing second-quarter results in early July. Analysts are calling for full-year earnings of $3.77 per share, an upward revision of 2 cents over the past 3 months.

Company Description

Baxter International develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions.

As a global diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide. The company’s products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices, clinical and medical research laboratories, and by patients at home under physician supervision. Baxter manufactures products in 26 countries and sells them in more than 100 countries.

Estimates are on the Rise

The company is seeing upbeat estimates ahead of announcing second-quarter results. Analysts are calling for full-year earnings of $3.77 per share, an upward revision of 2 cents over the past 3 months. For 2010, Wall Street is projecting earnings of $4.24 per share, versus last month’s $4.23.

Analysts’ estimates have held steady at 94 cents per share for the second quarter. Baxter’s second-quarter report is scheduled for release on July 9.

Rewarding Shareholders with Income

The company recently declared a quarterly dividend of 26 cents per share, noting that it is payable on July 1 to shareholders of record as of June 10. Baxter pays an industry-leading yield of 2%.

More Industry-beating Fundamentals

Baxter offers a return on equity (ROE) of 33%, squashing the industry average of 3%. The company boasts a net profit margin of 17%, while the industry average stands at a negative net margin.

A Strong First Quarter

Once the company’s second-quarter results will be announced, they will arrive on the heels of an excellent first quarter, which saw earnings per share of 83 cents. The result was ahead of the consensus estimate by 2.5% and topped the year-prior 74 cents.

Management stated despite the fact that the first quarter saw a challenging, global macro-economic environment, Baxter’s results underscored the value of its diversified healthcare model, the solid fundamentals underpinning its portfolio and the company’s disciplined focus on driving margin improvement.

“We continue to believe that we are very well-positioned given our broad geographic reach and the medically-necessary nature of our portfolio to expand access to care, improve treatments and enhance the quality of life for patients around the world,” said Robert L. Parkinson, Jr., chairman and chief executive officer.

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