Baxter International Inc. (BAX Quick QuoteBAX - Free Report) is scheduled to release first-quarter 2025 results on May 1, before the opening bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 11.54%. BAX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 5.92%. (Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.)

Q1 Estimates

Currently, the consensus estimate for revenues is pegged at $2.57 billion, indicating a decline of 28.4% from the prior-year quarter’s reported figure. The consensus mark for earnings is pinned at 48 cents per share, implying a 26.2% year-over-year decline.

Our model estimates total revenues from continuing operations to improve 3.8% at constant currency (cc) to $2.58 billion. Adjusted earnings per share are expected to decline 24.5% to 49 cents.

Factors to Note

Baxter is likely to report moderate growth when it reports first-quarter 2025 results, reflecting strong momentum in certain product lines strengthened on the back of easing macroeconomic pressures. Baxter’s sales from continuing operations improved 2% at cc during the fourth quarter of 2024, a trend that is likely to have continued in the first quarter. Baxter anticipates sales from continuing operations to grow 3-4% reportedly and 4% on an operational basis.

Although margins declined during the last reported quarter, it was primarily due to one-time costs, including the impact of a Front-Line Care goodwill impairment charge, business optimization costs, Hurricane Helene costs and separation-related costs. These costs are likely to have been absent or reduced in the first quarter, boosting the bottom line.

Moreover, the metric is expected to have improved following the completion of the transformational plan, which included the spin-off of Kidney Care and BioPharma Solutions businesses. The plan also included a simplified model with a faster and more effective response to macro and micro changes and an enhanced ability to advance innovation for its patients, driving operational efficiency. The company expects first-quarter EPS to be in the range of 47-50 cents.

Baxter’s rapid recovery from Hurricane Helene ensures minimal disruption in 2025. With all manufacturing lines at North Cove restored to pre-hurricane levels, supply continuity is secured. Strong crisis management, infrastructure resilience and proactive coordination with stakeholders might have positioned Baxter for stable operations and uninterrupted growth during the soon-to-be-reported quarter.

Baxter International Inc. Price and EPS Surprise

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

The Medical Products & Therapies segment is likely to have witnessed recovery from Hurricane Helene, which disrupted IV solutions production, potentially providing aiding sales during the first quarter. However, Baxter’s efforts to ramp up production, prioritize high-demand products and leverage global manufacturing sites should have partially offset the adverse impact.

Strong growth in infusion therapies, particularly within the Novum IQ pump platform, remains a bright spot as it continues to gain market share through competitive conversions and new customer uptake. The trend is likely to have continued in the soon-to-be-reported quarter. Approval for Novum IQ large volume infusion pump in December is likely to have further aided sales.

Moreover, quarterly results are likely to reflect the favorable impact of the growth of parenteral nutrition products and Advanced Surgery products, along with the recovery in sales of IV solutions from the hurricane impact. Clinolipid’s expanded indication broadens Baxter’s impact on pediatric nutrition, which might have driven sales higher. Our model estimates total segmental sales to improve 6.6% at cc to $1.28 billion.

In the Healthcare Systems & Technologies segment, first-quarter results are likely to reflect lingering softness in the U.S. primary care market, ongoing delays in international capital spending, and continued weakness in France and China. Moreover, certain supply constraints and exits from select markets or product categories are likely to have hurt sales growth. However, patient support systems should have shown resilience, driven by new sales and upgrades, strong order pipelines and hospital investment in care and connectivity solutions.

The Frontline Care division might have faced challenges, but a stabilization in the primary care market, coupled with new product launches in 2025, should have improved performance. Our model estimates total segment sales to decline 0.2% at cc to $258.3 million.

Baxter’s Pharmaceuticals segment is likely to have improved in the first quarter, continuing on the rebound in the fourth quarter following a weaker third quarter, where injectable and anesthesia sales were affected by phasing issues and supply constraints. The company’s injectable drug portfolio, with a pipeline of new product launches driving recovery, is likely to have delivered a strong performance.

Drug compounding might have remained a growth driver, benefiting from strong demand. However, the segment’s overall margin profile could have remained under pressure, and sustained cost optimization must have been crucial. Our model estimates total segmental sales to improve 14.4% at cc to $280.4 million.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Baxter this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% for Baxter.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: Baxter currently has a Zacks Rank #3 (Hold).

Stocks Worth a Look

Here are a few medical stocks worth considering, as these have the right combination of elements to come up with an earnings beat this reporting cycle.

Agilent Technologies (A Quick QuoteA - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

A’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.71%. The Zacks Consensus Estimate for fiscal second-quarter EPS implies a rise of 4.1% from the year-ago reported figure.

Globus Medical (GMED Quick QuoteGMED - Free Report) has an Earnings ESP of +2.40% and a Zacks Rank of 3 at present. 

The company is scheduled to release first-quarter 2025 results on May 8. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.86%. The Zacks Consensus Estimate for EPS implies an improvement of 2.8% from the year-ago reported figure.

EDAP TMS (EDAP Quick QuoteEDAP - Free Report) has an Earnings ESP of +2.03% and a Zacks Rank #3 at present.

EDAP delivered a trailing four-quarter average negative earnings surprise of 5.69%. The Zacks Consensus Estimate for first-quarter EPS implies a decline of 23.1% from the year-ago reported figure.