We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Baxter (BAX) Q4 Earnings and Revenues Surpass Estimates
Read MoreHide Full Article
Baxter International Inc. (BAX - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of $1.04, which outpaced the Zacks Consensus Estimate of $1.03 by 0.9%. The bottom line improved 30% from the year-ago quarter.
For full-year 2021, the company reported an adjusted EPS of $3.61, up 17% from the previous year. The figure matched the consensus mark.
GAAP EPS in the quarter was 47 cents, up 42% from the prior-year quarter.
Revenue Details
Revenues of $3.51 billion surpassed the Zacks Consensus Estimate by 4.6%. The top line improved 10% year over year on a reported basis, 12% on a constant currency (cc) basis and 4% on an operational basis.
For full-year 2021, the company reported revenues of $12.78 billion, up 10% from the previous year. The figure outpaced the consensus mark by 1.2%.
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 $1.76 billion, up 4% on a year-over-year basis and 5% at cc.
In EMEA, revenues totaled $815 million, up 2% from the year-ago quarter and 5% at cc.
In APAC, revenues of $732 million improved 5% from the prior-year quarter and 6% at cc.
Segmental Details
It is worth mentioning that in relation to the Hillrom buyout (December 2021), Baxter has added three new product categories — Patient Support Systems, Front Line Care and Surgical Solutions. During the quarter under review, Patient Support Systems reported revenues of $115 million, while Front Line Care and Surgical Solutions reported revenues of $70 million and $27 million, respectively.
Renal Care
This segment reported revenues of $1.03 billion in the quarter under review, up 2% from the prior-year quarter and 4% at cc.
Medication Delivery
Revenues at the segment amounted to $784 million, up 6% from the year-ago quarter and 6% at cc.
Baxter International Inc. Price, Consensus and EPS Surprise
Revenues at the segment totaled $604 million, up 7% from the year-ago quarter and 8% at cc.
Clinical Nutrition
Revenues at the segment were $249 million, up 2% from the year-ago quarter and 4% at cc.
Advanced Surgery
Revenues at the segment amounted to $255 million, down 2% from the year-ago quarter and flat at cc.
Acute Therapies
This segment reported revenues of $202 million, down 9% from the prior-year quarter and 7% at cc.
BioPharma Solutions
This segment reported revenues of $145 million, up 26% from the prior-year quarter and 31% at cc.
Other
Revenues in the segment were $30 million, up 20% on a year-over-year basis and 20% at cc.
Margin Analysis
Baxter reported an adjusted gross profit of $1.58 billion in the fourth quarter, up 18.2% year over year. As a percentage of revenues, gross margin expanded 290 basis points (bps) to 44.3% in the fourth quarter.
Selling, general and administrative expenses amounted to $885 million, up 36% from the year-ago quarter. Meanwhile, research and development expenses were $138 million, up 2% on a year-over-year basis.
Adjusted operating income rose 26.8% year over year to $714 million in the quarter under review. As a percentage of revenues, operating margin expanded 260 bps to 20.3% in the quarter under review.
2022 Guidance
For first-quarter 2022, the company anticipates sales to improve in the range of 24% to 25% on a reported basis and 27% to 28%% at cc. On an operational basis, the company expects low single-digit revenue growth.
For the same period, adjusted EPS is expected between 79 cents and 82 cents. The Zacks Consensus Estimate for the same is pegged at 90 cents per share.
For full-year 2021, Baxter anticipates sales growth to improve in the band of 24-25% on a reported basis, 26-27% at cc and around 4% on an operational basis.
Adjusted earnings per share is estimated in the range of $4.25 to $4.35. The Zacks Consensus Estimate for the same stands at $4.23.
Summing Up
Baxter ended fourth-quarter 2021 on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company witnessed strong performance across six 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, regulatory approvals, acquisitions, the beginning of the production of multiple COVID-19 vaccines (on a contract basis), and various launches deserve mention.
Apart from this, Baxter’s Hillrom buyout positions it well to accelerate both top and bottom-line performance and drive innovation associated with connected care solutions focused on boosting clinical outcomes for patients and enhancing workflow efficiency for customers.
Meanwhile, cut-throat competition in the MedTech markets remains a woe. An increase in selling, general and administrative expenses is concerning.
Zacks Rank
Baxter currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks in the broader medical space that have announced quarterly results are GlaxoSmithKline plc (GSK - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
GlaxoSmithKline, carrying a Zacks Rank #2, reported fourth-quarter 2021 adjusted earnings of 69 cents per American depositary share (“ADS”), which beat the Zacks Consensus Estimate by 9.5%. Revenues of $13 billion outpaced the consensus mark by 3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GlaxoSmithKline has an estimated long-term growth rate of 5.6%. GSK surpassed earnings estimates in three of the trailing four quarters and matched once, the average surprise being 20.5%.
Molina Healthcare reported fourth-quarter 2021 adjusted EPS of $2.88, which surpassed the Zacks Consensus Estimate by 2.1%. Fourth-quarter revenues of $7.41 billion outpaced the Zacks Consensus Estimate by 3.9%. It currently carries a Zacks Rank #2.
Molina Healthcare has an estimated long-term growth rate of 18.8%. MOH surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 5%.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Fourth-quarter revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in each of the trailing four quarters, the average surprise being 66.9%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Baxter (BAX) Q4 Earnings and Revenues Surpass Estimates
Baxter International Inc. (BAX - Free Report) reported fourth-quarter 2021 adjusted earnings per share (EPS) of $1.04, which outpaced the Zacks Consensus Estimate of $1.03 by 0.9%. The bottom line improved 30% from the year-ago quarter.
For full-year 2021, the company reported an adjusted EPS of $3.61, up 17% from the previous year. The figure matched the consensus mark.
GAAP EPS in the quarter was 47 cents, up 42% from the prior-year quarter.
Revenue Details
Revenues of $3.51 billion surpassed the Zacks Consensus Estimate by 4.6%. The top line improved 10% year over year on a reported basis, 12% on a constant currency (cc) basis and 4% on an operational basis.
For full-year 2021, the company reported revenues of $12.78 billion, up 10% from the previous year. The figure outpaced the consensus mark by 1.2%.
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 $1.76 billion, up 4% on a year-over-year basis and 5% at cc.
In EMEA, revenues totaled $815 million, up 2% from the year-ago quarter and 5% at cc.
In APAC, revenues of $732 million improved 5% from the prior-year quarter and 6% at cc.
Segmental Details
It is worth mentioning that in relation to the Hillrom buyout (December 2021), Baxter has added three new product categories — Patient Support Systems, Front Line Care and Surgical Solutions. During the quarter under review, Patient Support Systems reported revenues of $115 million, while Front Line Care and Surgical Solutions reported revenues of $70 million and $27 million, respectively.
Renal Care
This segment reported revenues of $1.03 billion in the quarter under review, up 2% from the prior-year quarter and 4% at cc.
Medication Delivery
Revenues at the segment amounted to $784 million, up 6% from the year-ago quarter and 6% 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 $604 million, up 7% from the year-ago quarter and 8% at cc.
Clinical Nutrition
Revenues at the segment were $249 million, up 2% from the year-ago quarter and 4% at cc.
Advanced Surgery
Revenues at the segment amounted to $255 million, down 2% from the year-ago quarter and flat at cc.
Acute Therapies
This segment reported revenues of $202 million, down 9% from the prior-year quarter and 7% at cc.
BioPharma Solutions
This segment reported revenues of $145 million, up 26% from the prior-year quarter and 31% at cc.
Other
Revenues in the segment were $30 million, up 20% on a year-over-year basis and 20% at cc.
Margin Analysis
Baxter reported an adjusted gross profit of $1.58 billion in the fourth quarter, up 18.2% year over year. As a percentage of revenues, gross margin expanded 290 basis points (bps) to 44.3% in the fourth quarter.
Selling, general and administrative expenses amounted to $885 million, up 36% from the year-ago quarter. Meanwhile, research and development expenses were $138 million, up 2% on a year-over-year basis.
Adjusted operating income rose 26.8% year over year to $714 million in the quarter under review. As a percentage of revenues, operating margin expanded 260 bps to 20.3% in the quarter under review.
2022 Guidance
For first-quarter 2022, the company anticipates sales to improve in the range of 24% to 25% on a reported basis and 27% to 28%% at cc. On an operational basis, the company expects low single-digit revenue growth.
For the same period, adjusted EPS is expected between 79 cents and 82 cents. The Zacks Consensus Estimate for the same is pegged at 90 cents per share.
For full-year 2021, Baxter anticipates sales growth to improve in the band of 24-25% on a reported basis, 26-27% at cc and around 4% on an operational basis.
Adjusted earnings per share is estimated in the range of $4.25 to $4.35. The Zacks Consensus Estimate for the same stands at $4.23.
Summing Up
Baxter ended fourth-quarter 2021 on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company witnessed strong performance across six 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, regulatory approvals, acquisitions, the beginning of the production of multiple COVID-19 vaccines (on a contract basis), and various launches deserve mention.
Apart from this, Baxter’s Hillrom buyout positions it well to accelerate both top and bottom-line performance and drive innovation associated with connected care solutions focused on boosting clinical outcomes for patients and enhancing workflow efficiency for customers.
Meanwhile, cut-throat competition in the MedTech markets remains a woe. An increase in selling, general and administrative expenses is concerning.
Zacks Rank
Baxter currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks in the broader medical space that have announced quarterly results are GlaxoSmithKline plc (GSK - Free Report) , Molina Healthcare, Inc. (MOH - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .
GlaxoSmithKline, carrying a Zacks Rank #2, reported fourth-quarter 2021 adjusted earnings of 69 cents per American depositary share (“ADS”), which beat the Zacks Consensus Estimate by 9.5%. Revenues of $13 billion outpaced the consensus mark by 3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GlaxoSmithKline has an estimated long-term growth rate of 5.6%. GSK surpassed earnings estimates in three of the trailing four quarters and matched once, the average surprise being 20.5%.
Molina Healthcare reported fourth-quarter 2021 adjusted EPS of $2.88, which surpassed the Zacks Consensus Estimate by 2.1%. Fourth-quarter revenues of $7.41 billion outpaced the Zacks Consensus Estimate by 3.9%. It currently carries a Zacks Rank #2.
Molina Healthcare has an estimated long-term growth rate of 18.8%. MOH surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 5%.
Bio-Rad reported fourth-quarter 2021 adjusted EPS of $3.21, which surpassed the Zacks Consensus Estimate by 11.9%. Fourth-quarter revenues of $732.8 million outpaced the Zacks Consensus Estimate by 0.5%. It currently has a Zacks Rank #2.
Bio-Rad has an earnings yield of 2.3%, which compares favorably with the industry’s negative yield. BIO surpassed earnings estimates in each of the trailing four quarters, the average surprise being 66.9%.