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Baxter (BAX) to Report Q2 Earnings: What's in the Offing?
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Baxter International Inc. (BAX - Free Report) is scheduled to release second-quarter 2022 results on Jul 28, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 16.25%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 8.46%.
Q2 Estimates
Currently, the Zacks Consensus Estimate for second-quarter revenues is pegged at $3.89 billion, indicating an improvement of 25.6% from the prior-year period. The consensus mark for earnings stands at 88 cents per share, suggesting growth of 10% from the year-ago quarter.
Factors to Note
The recovery in rates of hospital admissions is likely to have continued in the second quarter, driving sales of the Baxter’s Medication Delivery segment.
The company has multiple collaborations to help manufacture COVID-19 vaccines. Sales of the BioPharma Solutions segment are likely to have benefited from the resurgence of COVID-19 infections, driving prioritization for vaccinations during the soon-to-be-reported quarter.
The company’s robust product portfolio and the planned launch of therapies and products might get reflected in the second-quarter revenues.
In the first quarter, Baxter announced the FDA clearance for its ST Set used in continuous renal replacement therapy (CRRT), which will be used with PrisMax or Prismaflex control units. This clearance is likely to have helped the company expand access to CRRT for patients with acute kidney injury. However, Renal Care segment sales declined in the first quarter and the trend is likely to have continued in the second quarter.
Sales of the Pharmaceutical segment are likely to have been hurt by generic competition for certain molecules and supply constraints that impacted product availability
In the first quarter, Americas and EMEA of the company’s global regions performed well and contributed to the quarter’s favorable results. In Americas, Baxter reported revenues of $1.63 billion, up 5% at cc. In EMEA, revenues totaled $699 million, up 2% from the year-ago quarter at cc. However, sales growth was hurt by unfavorable currency movements. The trend is likely to have continued in the soon-to-be-reported quarter.
In APAC, revenues of $627 million were flat year over year. However, unfavorable currency movements hurt sales growth. This trend is likely to have continued in the second quarter as well.
Meanwhile, three new product categories added with the Hillrom buyout in December last year are likely to have brought additional sales during the second quarter. These product categories generated $775 million in the first quarter.
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 chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: Baxter International has an Earnings ESP of -1.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle:
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +300.00% and a Zacks Rank of 1. ALKS has an estimated long-term growth rate of 25.1%.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Ranked stock. STE has an earnings yield of 4% against the industry’s negative yield.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
Medpace (MEDP - Free Report) has an Earnings ESP of +6.23% and a Zacks Rank of 1 at present. MEDP has an earnings yield of 3.7% against the industry’s negative yield.
Medpace’searnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.11%.
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Baxter (BAX) to Report Q2 Earnings: What's in the Offing?
Baxter International Inc. (BAX - Free Report) is scheduled to release second-quarter 2022 results on Jul 28, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 16.25%. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 8.46%.
Q2 Estimates
Currently, the Zacks Consensus Estimate for second-quarter revenues is pegged at $3.89 billion, indicating an improvement of 25.6% from the prior-year period. The consensus mark for earnings stands at 88 cents per share, suggesting growth of 10% from the year-ago quarter.
Factors to Note
The recovery in rates of hospital admissions is likely to have continued in the second quarter, driving sales of the Baxter’s Medication Delivery segment.
The company has multiple collaborations to help manufacture COVID-19 vaccines. Sales of the BioPharma Solutions segment are likely to have benefited from the resurgence of COVID-19 infections, driving prioritization for vaccinations during the soon-to-be-reported quarter.
The company’s robust product portfolio and the planned launch of therapies and products might get reflected in the second-quarter revenues.
In the first quarter, Baxter announced the FDA clearance for its ST Set used in continuous renal replacement therapy (CRRT), which will be used with PrisMax or Prismaflex control units. This clearance is likely to have helped the company expand access to CRRT for patients with acute kidney injury. However, Renal Care segment sales declined in the first quarter and the trend is likely to have continued in the second quarter.
Baxter International Inc. Price and Consensus
Baxter International Inc. price-consensus-chart | Baxter International Inc. Quote
Sales of the Pharmaceutical segment are likely to have been hurt by generic competition for certain molecules and supply constraints that impacted product availability
In the first quarter, Americas and EMEA of the company’s global regions performed well and contributed to the quarter’s favorable results. In Americas, Baxter reported revenues of $1.63 billion, up 5% at cc. In EMEA, revenues totaled $699 million, up 2% from the year-ago quarter at cc. However, sales growth was hurt by unfavorable currency movements. The trend is likely to have continued in the soon-to-be-reported quarter.
In APAC, revenues of $627 million were flat year over year. However, unfavorable currency movements hurt sales growth. This trend is likely to have continued in the second quarter as well.
Meanwhile, three new product categories added with the Hillrom buyout in December last year are likely to have brought additional sales during the second quarter. These product categories generated $775 million in the first quarter.
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 chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: Baxter International has an Earnings ESP of -1.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle:
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +300.00% and a Zacks Rank of 1. ALKS has an estimated long-term growth rate of 25.1%.
Alkermes’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 350.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Ranked stock. STE has an earnings yield of 4% against the industry’s negative yield.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
Medpace (MEDP - Free Report) has an Earnings ESP of +6.23% and a Zacks Rank of 1 at present. MEDP has an earnings yield of 3.7% against the industry’s negative yield.
Medpace’searnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.11%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.