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Baxter International (BAX) Q2 Earnings, Sales Top; View Up
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Baxter International Inc (BAX - Free Report) reported second-quarter 2016 adjusted earnings of 46 cents per share, which surpassed the Zacks Consensus Estimate by 7 cents and was well above management’s guided range of 38–40 cents.
Moreover, adjusted earnings surged a massive 142% year over year driven by 530 basis point (bps) expansion in operating margin. This offset modest net sales growth of 6% on a constant currency (cc) basis to $2.59 billion.
Sales also managed to beat the Zacks Consensus Estimate of $2.50 billion and were well ahead of management’s expectation of 4% growth at cc.
U.S. sales were up 10% on a year-over-year basis to $1.1 billion. International sales increased 3% at cc to $1.5 billion. Adjusting for the impact of foreign exchange and increased competition for the company’s oncology injectable, cyclophosphamide, in the U.S., Baxter’s sales were up 12% in the domestic market. Internationally, sales increased 7% in the reported quarter.
Hospital products sales improved 7% at cc on a year-over-year basis to $1.6 billion, while Renal products sales increased 4% to $965 million.
Higher sales of SIGMA SPECTRUM infusion pump and IV solutions in the U.S. drove Hospital product sales. Growth in Renal products was driven by higher demand for peritoneal dialysis products and continuous renal replacement therapies.
Key Product Development
Baxter recently received Health Canada approval for its AMIA Automated Peritoneal Dialysis (APD) System on the SHARESOURCE Connectivity Platform. Notably, the AMIA APD system is the only FDA-approved product in the U.S. and Canada that boasts patient-friendly features such as voice guidance, a touchscreen control panel and the SHARESOURCE two-way connectivity platform.
Baxalta Stake Details
During second quarter, Baxter completed the disposition of its remaining stake in Baxalta, which included an equity contribution of approximately $700 million to the company’s U.S. pension plan.
For th full year, Baxter now expects sales to increase 3% to 4% at cc and 1% to 2% on reported basis. Adjusted earnings per share are now anticipated in the range of $1.69 to $1.74, up from the earlier guidance of $1.59 to $1.67.
For the third quarter of 2016, Baxter expects sales growth at cc in the range of 3% to 4%, while reported sales growth is projected in the range of 2% to 3%. Adjusted earnings are forecasted in the range of 43 cents to 45 cents per share.
Zacks Rank & Stocks to Consider
Currently, Baxter has a Zacks Rank #4 (Sell).
Better-ranked stocks in the medical sector include Boston Scientific (BSX - Free Report) and NuvaSive . Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Baxter International (BAX) Q2 Earnings, Sales Top; View Up
Baxter International Inc (BAX - Free Report) reported second-quarter 2016 adjusted earnings of 46 cents per share, which surpassed the Zacks Consensus Estimate by 7 cents and was well above management’s guided range of 38–40 cents.
Moreover, adjusted earnings surged a massive 142% year over year driven by 530 basis point (bps) expansion in operating margin. This offset modest net sales growth of 6% on a constant currency (cc) basis to $2.59 billion.
Sales also managed to beat the Zacks Consensus Estimate of $2.50 billion and were well ahead of management’s expectation of 4% growth at cc.
U.S. sales were up 10% on a year-over-year basis to $1.1 billion. International sales increased 3% at cc to $1.5 billion. Adjusting for the impact of foreign exchange and increased competition for the company’s oncology injectable, cyclophosphamide, in the U.S., Baxter’s sales were up 12% in the domestic market. Internationally, sales increased 7% in the reported quarter.
Hospital products sales improved 7% at cc on a year-over-year basis to $1.6 billion, while Renal products sales increased 4% to $965 million.
Higher sales of SIGMA SPECTRUM infusion pump and IV solutions in the U.S. drove Hospital product sales. Growth in Renal products was driven by higher demand for peritoneal dialysis products and continuous renal replacement therapies.
Key Product Development
Baxter recently received Health Canada approval for its AMIA Automated Peritoneal Dialysis (APD) System on the SHARESOURCE Connectivity Platform. Notably, the AMIA APD system is the only FDA-approved product in the U.S. and Canada that boasts patient-friendly features such as voice guidance, a touchscreen control panel and the SHARESOURCE two-way connectivity platform.
Baxalta Stake Details
During second quarter, Baxter completed the disposition of its remaining stake in Baxalta, which included an equity contribution of approximately $700 million to the company’s U.S. pension plan.
BAXTER INTL Price, Consensus and EPS Surprise
BAXTER INTL Price, Consensus and EPS Surprise | BAXTER INTL Quote
Guidance Raised
For th full year, Baxter now expects sales to increase 3% to 4% at cc and 1% to 2% on reported basis. Adjusted earnings per share are now anticipated in the range of $1.69 to $1.74, up from the earlier guidance of $1.59 to $1.67.
For the third quarter of 2016, Baxter expects sales growth at cc in the range of 3% to 4%, while reported sales growth is projected in the range of 2% to 3%. Adjusted earnings are forecasted in the range of 43 cents to 45 cents per share.
Zacks Rank & Stocks to Consider
Currently, Baxter has a Zacks Rank #4 (Sell).
Better-ranked stocks in the medical sector include Boston Scientific (BSX - Free Report) and NuvaSive . Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>