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Baxter (BAX) Q2 Earnings Surpass Estimates, Revenues Miss
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Baxter International Inc. (BAX - Free Report) reported second-quarter 2021 adjusted earnings per share (EPS) of 80 cents, which outpaced the Zacks Consensus Estimate of 74 cents by 8.1%. The bottom line improved 25% from the year-ago quarter.
GAAP EPS in the quarter was 59 cents, up 22.9% from the prior-year quarter.
Revenue Details
Revenues of $3.09 billion lagged the Zacks Consensus Estimate by 0.5%. The top line, however, improved 13.9% year over year on a reported basis, 9% on a constant currency (cc) basis and 8% on operational basis.
Geographical Details
Baxter reports operating results through three geographic segments — Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific).
In Americas, Baxter reported revenues of $1.62 billion, up 11% on a year-over-year basis and 8% at cc.
In EMEA, revenues totaled $783 million, up 17% from the year-ago quarter and 8% at cc.
In APAC, revenues of $691 million improved 19% from the prior-year quarter and 10% at cc.
Segmental Details
It is worth mentioning that starting from the first quarter of 2021, the company's segmental details of revenues separately show net sales from its BioPharma Solutions business, which was previously included within Other.
Renal Care
This segment reported revenues of $964 million in the quarter under review, up 5% from the prior-year quarter. Revenues at the segment remained flat on a year-over-year basis.
Medication Delivery
Revenues at the segment amounted to $697 million, up 15% from the year-ago quarter and 12% at cc.
Baxter International Inc. Price, Consensus and EPS Surprise
Revenues at the segment totaled $546 million, up 14% from the year-ago quarter and 5% at cc.
Clinical Nutrition
Revenues at the segment were $237 million, up 10% from the year-ago quarter and 3% at cc.
Advanced Surgery
Revenues at the segment totaled $256 million, up 52% from the year-ago quarter and 48% at cc.
Acute Therapies
This segment reported revenues of $188 million, up 1% from the prior-year quarter but down 4% at cc.
BioPharma Solutions
This segment reported revenues of $183 million, up 58% from the prior-year quarter and 49% at cc.
Other
Revenues in the segment were $27 million, flat on a year-over-year basis but up 4% at cc.
Margin Analysis
Baxter reported adjusted gross profit of $1.32 billion in the second quarter, up 16.8% year over year. As a percentage of revenues, gross margin expanded 100 basis points (bps) to 42.6% in the second quarter.
Selling, general and administrative expenses amounted to $675 million, up 14.4% from the year-ago quarter, while research and development expenses were $139 million, up 18.8% on a year-over-year basis.
Adjusted operating income rose 22.2% year over year to $533 million in the quarter under review. As a percentage of revenues, operating margin expanded 120 bps to 17.2% in the quarter under review.
2021 Guidance
For third-quarter 2021 the company anticipates sales to improve around 9% on a reported basis, about 7% at cc and approximately 6% on an operational basis.
For the same period, adjusted EPS is estimated between 93 cents and 95 cents. The Zacks Consensus Estimate for the same is pegged at 94 cents.
For full-year 2021, Baxter anticipates sales growth of about 8% on a reported basis, 5-6% at cc and 4-5% on an operational basis.
Adjusted earnings per share is estimated in the range of $3.49 to $3.55. The Zacks Consensus Estimate for the same stands at $3.52.
Summing Up
Baxter ended second-quarter 2021 on a mixed note, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company witnessed strong performance across all of its business units. Growth in Americas, EMEA and APAC is encouraging. Expansion in both gross and operating margins fuels further optimism.
With respect to business highlights during the quarter under review, Baxter introduced the Sharesource Analytics 1.0 premium module, which is the next generation of digital health for home-based peritoneal dialysis (“PD”) patients. Apart from this, the company announced the global launch of the latest version of its next-generation platform, PrisMax 2. The PrisMax 2 system aims to help streamline the delivery of continuous renal replacement therapy (“CRRT”) and other organ support therapies.
Meanwhile, cut-throat competition in the MedTech markets is a woe. Increase in selling, general and administrative expenses is concerning.
The Zacks Consensus Estimate for AMN Healthcare’s second-quarter 2021 adjusted EPS is currently pegged at $1.47. The consensus mark for second-quarter revenues stands at $829.4 million.
The Zacks Consensus Estimate for Catalent’s fourth-quarter fiscal 2021 adjusted EPS is currently pegged at $1.04. The consensus mark for fiscal fourth-quarter revenues stands at $1.13 billion.
The Zacks Consensus Estimate for Change Healthcare’s first-quarter fiscal 2022 adjusted EPS is currently pegged at 46 cents. The consensus mark for its revenues stands at $851.9 million.
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Baxter (BAX) Q2 Earnings Surpass Estimates, Revenues Miss
Baxter International Inc. (BAX - Free Report) reported second-quarter 2021 adjusted earnings per share (EPS) of 80 cents, which outpaced the Zacks Consensus Estimate of 74 cents by 8.1%. The bottom line improved 25% from the year-ago quarter.
GAAP EPS in the quarter was 59 cents, up 22.9% from the prior-year quarter.
Revenue Details
Revenues of $3.09 billion lagged the Zacks Consensus Estimate by 0.5%. The top line, however, improved 13.9% year over year on a reported basis, 9% on a constant currency (cc) basis and 8% on operational basis.
Geographical Details
Baxter reports operating results through three geographic segments — Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific).
In Americas, Baxter reported revenues of $1.62 billion, up 11% on a year-over-year basis and 8% at cc.
In EMEA, revenues totaled $783 million, up 17% from the year-ago quarter and 8% at cc.
In APAC, revenues of $691 million improved 19% from the prior-year quarter and 10% at cc.
Segmental Details
It is worth mentioning that starting from the first quarter of 2021, the company's segmental details of revenues separately show net sales from its BioPharma Solutions business, which was previously included within Other.
Renal Care
This segment reported revenues of $964 million in the quarter under review, up 5% from the prior-year quarter. Revenues at the segment remained flat on a year-over-year basis.
Medication Delivery
Revenues at the segment amounted to $697 million, up 15% from the year-ago quarter and 12% at cc.
Baxter International Inc. Price, Consensus and EPS Surprise
Baxter International Inc. price-consensus-eps-surprise-chart | Baxter International Inc. Quote
Pharmaceuticals
Revenues at the segment totaled $546 million, up 14% from the year-ago quarter and 5% at cc.
Clinical Nutrition
Revenues at the segment were $237 million, up 10% from the year-ago quarter and 3% at cc.
Advanced Surgery
Revenues at the segment totaled $256 million, up 52% from the year-ago quarter and 48% at cc.
Acute Therapies
This segment reported revenues of $188 million, up 1% from the prior-year quarter but down 4% at cc.
BioPharma Solutions
This segment reported revenues of $183 million, up 58% from the prior-year quarter and 49% at cc.
Other
Revenues in the segment were $27 million, flat on a year-over-year basis but up 4% at cc.
Margin Analysis
Baxter reported adjusted gross profit of $1.32 billion in the second quarter, up 16.8% year over year. As a percentage of revenues, gross margin expanded 100 basis points (bps) to 42.6% in the second quarter.
Selling, general and administrative expenses amounted to $675 million, up 14.4% from the year-ago quarter, while research and development expenses were $139 million, up 18.8% on a year-over-year basis.
Adjusted operating income rose 22.2% year over year to $533 million in the quarter under review. As a percentage of revenues, operating margin expanded 120 bps to 17.2% in the quarter under review.
2021 Guidance
For third-quarter 2021 the company anticipates sales to improve around 9% on a reported basis, about 7% at cc and approximately 6% on an operational basis.
For the same period, adjusted EPS is estimated between 93 cents and 95 cents. The Zacks Consensus Estimate for the same is pegged at 94 cents.
For full-year 2021, Baxter anticipates sales growth of about 8% on a reported basis, 5-6% at cc and 4-5% on an operational basis.
Adjusted earnings per share is estimated in the range of $3.49 to $3.55. The Zacks Consensus Estimate for the same stands at $3.52.
Summing Up
Baxter ended second-quarter 2021 on a mixed note, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company witnessed strong performance across all of its business units. Growth in Americas, EMEA and APAC is encouraging. Expansion in both gross and operating margins fuels further optimism.
With respect to business highlights during the quarter under review, Baxter introduced the Sharesource Analytics 1.0 premium module, which is the next generation of digital health for home-based peritoneal dialysis (“PD”) patients. Apart from this, the company announced the global launch of the latest version of its next-generation platform, PrisMax 2. The PrisMax 2 system aims to help streamline the delivery of continuous renal replacement therapy (“CRRT”) and other organ support therapies.
Meanwhile, cut-throat competition in the MedTech markets is a woe. Increase in selling, general and administrative expenses is concerning.
Zacks Rank
Baxter currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks, which are expected to report earnings soon, are AMN Healthcare Services Inc. (AMN - Free Report) , Catalent, Inc. (CTLT - Free Report) and Change Healthcare Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for AMN Healthcare’s second-quarter 2021 adjusted EPS is currently pegged at $1.47. The consensus mark for second-quarter revenues stands at $829.4 million.
The Zacks Consensus Estimate for Catalent’s fourth-quarter fiscal 2021 adjusted EPS is currently pegged at $1.04. The consensus mark for fiscal fourth-quarter revenues stands at $1.13 billion.
The Zacks Consensus Estimate for Change Healthcare’s first-quarter fiscal 2022 adjusted EPS is currently pegged at 46 cents. The consensus mark for its revenues stands at $851.9 million.