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Baxter (BAX) to Report Q1 Earnings: What's in the Offing?

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Baxter International Inc. (BAX - Free Report) is scheduled to release first-quarter 2022 results on Apr 28, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 0.9%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 9.1%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $3.67 billion, indicating an improvement of 24.4% from the prior-year period. The consensus mark for earnings stands at 80 cents per share, suggesting growth of 5.3% 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’ first-quarter performance.

The company’s robust product portfolio and the planned launch of therapies and products might get reflected in the first-quarter revenues.

In the fourth quarter, Baxter announced the global launch of PrisMax 2 — the latest version of Baxter’s leading-edge critical care technology that has been developed to streamline the delivery of CRRT and other organ support therapies. The PrisMax 2 system features new solutions within the company’s TrueVue digital health portfolio and the PrismaLung+ blood-gas exchanger.

Baxter International Inc. Price and EPS Surprise

Baxter International Inc. Price and EPS Surprise

Baxter International Inc. price-eps-surprise | Baxter International Inc. Quote

Per the fourth-quarter 2021 earnings release, the company announced the FDA approval and commercial launch of premix Norepinephrine Bitartrate in 5% Dextrose Injection (norepinephrine) — a cardiovascular medication indicated to raise blood pressure in adult patients with severe, acute hypotension (low blood pressure). Interestingly, Baxter’s formulation of norepinephrine is the first and only manufacturer-prepared ready-to-use formulation available.
These developments might have favored the company’s performance in the to-be-reported quarter.

Global growth in patient volume drove the company’s PD businesses, leading to higher sales with respect to Baxter’s Renal Care segment in the fourth quarter. This momentum is likely to have continued in the first quarter as well.

In the fourth quarter, all three of the company’s global regions performed well and contributed to the quarter’s favorable results. 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. Sustained recovery from the pandemic across all three regions contributed to the improvement. Baxter’s wide geographic presence provides balance and stability, thereby enabling it to counter risks stemming from overexposure to a more limited range of geographies. This momentum is likely to have continued in the first quarter as well.

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 -3.62%. 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 #3.

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.

Zimmer Biomet Holdings, Inc. (ZBH - Free Report) has an Earnings ESP of +0.67% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zimmer Biomet’s long-term earnings growth rate is estimated at 5.8%. The company’s earnings yield of 5% compares favorably with the industry’s 0.4%.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 3.

Haemonetics’ long-term earnings growth rate is estimated at 10%. The company’s earnings yield of 4.8% compares favorably with the industry’s 0.4%.

DexCom, Inc. (DXCM - Free Report) has an Earnings ESP of +9.06% and a Zacks Rank of 3.

DexCom’s long-term earnings growth rate is estimated at 17.6%. The company’s earnings yield of 0.7% compares favorably with the industry’s (6.5%).

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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