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Baxter (BAX) to Report Q4 Earnings: What's in the Offing?
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Baxter International Inc. (BAX - Free Report) is scheduled to release fourth-quarter 2021 results on Feb17, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 8.5%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 10.2%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.35 billion, indicating an improvement of 5.2% from the prior-year period. The consensus mark for earnings stands at $1.03 per share, suggesting growth of 28.9% from the year-ago quarter.
Factors to Note
Increased demand for acute therapies products due to the COVID-19 resurgence, and continuous renal replacement therapies (CRRT), devices and associated consumables are likely to have driven Baxter’s Acute Therapies business’ fourth-quarter performance.
The company’s robust product portfolio, and the planned launch of therapies and products might get reflected in the fourth-quarter revenues.
In November 2021, Baxter announced an approximately $100 million expansion of its sterile fill/finish manufacturing facility located in Halle/Westfalen, Germany. This facility is operated by BioPharma Solutions (“BPS”), a business unit of Baxter. Construction on the new manufacturing building is expected to commence in 2022 and be completed in 2024.
In October, the company announced the CE marking of the NEPHROCLEAR CCL14 Test in collaboration with a global leader in in-vitro diagnostics. In September, Baxter announced the receipt of the FDA’s approval and commercial launch of premix (ready-to-use) Norepinephrine Bitartrate in 5% Dextrose Injection (norepinephrine).
These developments might have favored the company’s performance in the to-be-reported quarter. Global growth in-patient volumes drove the company’s PD businesses that contributed to higher sales with respect to Baxter’s Renal Care segment in the third quarter. This momentum is likely to have continued in the fourth quarter as well.
In the third quarter, the Advanced Surgery segment’s revenues amounted to $249 million, reflecting a rise of 6% from the year-ago quarter and 48% at cc. Solid growth in international business contributed to the upside. The momentum is likely to have continued in the fourth quarter. However, it is worth mentioning that surgical procedures in the United States might have been impacted due to the COVID-19 resurgence and staffing shortages.
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here as you will see below.
Earnings ESP: Baxter has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Baxter carries a Zacks Rank #2.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank of 2.
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.
DENTSPLY SIRONA Inc. (XRAY - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank of 3.
DENTSPLY SIRONA’s long-term earnings growth rate is estimated at 22.2%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.5%.
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Baxter (BAX) to Report Q4 Earnings: What's in the Offing?
Baxter International Inc. (BAX - Free Report) is scheduled to release fourth-quarter 2021 results on Feb17, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 8.5%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 10.2%.
Q4 Estimates
Currently, the Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.35 billion, indicating an improvement of 5.2% from the prior-year period. The consensus mark for earnings stands at $1.03 per share, suggesting growth of 28.9% from the year-ago quarter.
Factors to Note
Increased demand for acute therapies products due to the COVID-19 resurgence, and continuous renal replacement therapies (CRRT), devices and associated consumables are likely to have driven Baxter’s Acute Therapies business’ fourth-quarter performance.
The company’s robust product portfolio, and the planned launch of therapies and products might get reflected in the fourth-quarter revenues.
In November 2021, Baxter announced an approximately $100 million expansion of its sterile fill/finish manufacturing facility located in Halle/Westfalen, Germany. This facility is operated by BioPharma Solutions (“BPS”), a business unit of Baxter. Construction on the new manufacturing building is expected to commence in 2022 and be completed in 2024.
Baxter International Inc. Price and EPS Surprise
Baxter International Inc. price-eps-surprise | Baxter International Inc. Quote
In October, the company announced the CE marking of the NEPHROCLEAR CCL14 Test in collaboration with a global leader in in-vitro diagnostics. In September, Baxter announced the receipt of the FDA’s approval and commercial launch of premix (ready-to-use) Norepinephrine Bitartrate in 5% Dextrose Injection (norepinephrine).
These developments might have favored the company’s performance in the to-be-reported quarter.
Global growth in-patient volumes drove the company’s PD businesses that contributed to higher sales with respect to Baxter’s Renal Care segment in the third quarter. This momentum is likely to have continued in the fourth quarter as well.
In the third quarter, the Advanced Surgery segment’s revenues amounted to $249 million, reflecting a rise of 6% from the year-ago quarter and 48% at cc. Solid growth in international business contributed to the upside. The momentum is likely to have continued in the fourth quarter. However, it is worth mentioning that surgical procedures in the United States might have been impacted due to the COVID-19 resurgence and staffing shortages.
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here as you will see below.
Earnings ESP: Baxter has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Baxter carries a Zacks Rank #2.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +2.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. The company’s earnings yield of 5.5% compares favorably with the industry’s 0.8%.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank of 2.
Henry Schein’s long-term earnings growth rate is estimated at 11.8%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.1%.
DENTSPLY SIRONA Inc. (XRAY - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank of 3.
DENTSPLY SIRONA’s long-term earnings growth rate is estimated at 22.2%. The company’s earnings yield of 5.9% compares favorably with the industry’s 4.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.