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Baxter International (BAX) Q1 Earnings Beat, FY17 View Up
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Baxter International Inc. (BAX - Free Report) reported first-quarter 2017 adjusted earnings of 58 cents per share, which surpassed the Zacks Consensus Estimate by 7 cents and was way better than the year-ago figure of 36 cents. The figure was also above the company’s guidance of 50 cents to 52 cents. Interestingly, over the last four trailing quarters, the company posted positive earnings surprises, the average being 19.75%.
The company posted sales of $2.47 billion, marginally beating the Zacks Consensus Estimate of $2.43 billion. At constant currency (cc), revenues increased 5% on a year-over-year basis.
Adjusting for the impact of foreign exchange and increased competition for the company’s cyclophosphamide, Baxter’s sales were up 7% on a year-over-year basis. U.S. sales were up 1% year over year to $1.1 billion. International sales increased 1% to almost $1.4 billion.
Baxter International Inc. Price, Consensus and EPS Surprise
In the first quarter, Baxter acquired Wound Care Technologies, which is complementary to the company’s surgical portfolio. The company also entered into a strategic partnership with Scinopharm, one of the world’s leading active pharmaceutical ingredient (API) manufacturers.
Share Performance & Estimate Revision Trend
Baxter has had an impressive run on the bourse on a year-to-date basis. The company gained roughly 20%, higher than the Zacks categorized Medical Products sub-industry’s addition of almost 11.8%. Moreover, the current level compares favorably with the S&P 500’s return of 7.5% over the same time frame. This, together with a long-term expected earnings growth rate of 12.58%, instills confidence in investors.
The estimate revision trend for the stock has been stable over the last two months. Notably, the Zacks Consensus Estimate for earnings is pegged at $2.16 for the full year.
Currently, Baxter has a Zacks Rank #3 (Hold).
Segment Details
Hospital products: Sales at this segment climbed 7% at cc on a year-over-year basis to $1.6 billion. Solid U.S. sales of IV therapies, IV access sets, and select anesthesia and critical care products were the key catalysts. Growing adoption of Baxter’s ‘parenteral nutrition therapies’ and international bio-surgery products also drove sales at this segment.
Renal products: Sales increased 1% at cc to $$896 million at this segment. Renal sales were driven by peritoneal dialysis products and increased global demand for continuous renal replacement therapies. Also, solid demand for the company’s Automated Peritoneal Dialysis (APD) cyclers – AMIA in the U.S. and HOMECHOICE CLARIA in international markets – boosted sales.
For full-year 2017, Baxter projects earnings in the band of $2.20 to $2.28 per share, up from the previously issued range of $2.10 to $2.18 (from continuing operations, before special items). Furthermore, the company expects sales growth in the band of 2% to 3% at cc.
For the first quarter of 2017, Baxter estimates sales growth of about 2% at cc. Adjusted earnings are forecasted in the range of 55 cents to 57 cents per share.
Inogen has a long-term expected earnings growth rate of 17.50%. The stock represents an impressive one-year return of 61.9%.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 17.5%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
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Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
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Baxter International (BAX) Q1 Earnings Beat, FY17 View Up
Baxter International Inc. (BAX - Free Report) reported first-quarter 2017 adjusted earnings of 58 cents per share, which surpassed the Zacks Consensus Estimate by 7 cents and was way better than the year-ago figure of 36 cents. The figure was also above the company’s guidance of 50 cents to 52 cents. Interestingly, over the last four trailing quarters, the company posted positive earnings surprises, the average being 19.75%.
The company posted sales of $2.47 billion, marginally beating the Zacks Consensus Estimate of $2.43 billion. At constant currency (cc), revenues increased 5% on a year-over-year basis.
Adjusting for the impact of foreign exchange and increased competition for the company’s cyclophosphamide, Baxter’s sales were up 7% on a year-over-year basis. U.S. sales were up 1% year over year to $1.1 billion. International sales increased 1% to almost $1.4 billion.
Baxter International Inc. Price, Consensus and EPS Surprise
Baxter International Inc. Price, Consensus and EPS Surprise | Baxter International Inc. Quote
In the first quarter, Baxter acquired Wound Care Technologies, which is complementary to the company’s surgical portfolio. The company also entered into a strategic partnership with Scinopharm, one of the world’s leading active pharmaceutical ingredient (API) manufacturers.
Share Performance & Estimate Revision Trend
Baxter has had an impressive run on the bourse on a year-to-date basis. The company gained roughly 20%, higher than the Zacks categorized Medical Products sub-industry’s addition of almost 11.8%. Moreover, the current level compares favorably with the S&P 500’s return of 7.5% over the same time frame. This, together with a long-term expected earnings growth rate of 12.58%, instills confidence in investors.
The estimate revision trend for the stock has been stable over the last two months. Notably, the Zacks Consensus Estimate for earnings is pegged at $2.16 for the full year.
Currently, Baxter has a Zacks Rank #3 (Hold).
Segment Details
Hospital products: Sales at this segment climbed 7% at cc on a year-over-year basis to $1.6 billion. Solid U.S. sales of IV therapies, IV access sets, and select anesthesia and critical care products were the key catalysts. Growing adoption of Baxter’s ‘parenteral nutrition therapies’ and international bio-surgery products also drove sales at this segment.
Renal products: Sales increased 1% at cc to $$896 million at this segment. Renal sales were driven by peritoneal dialysis products and increased global demand for continuous renal replacement therapies. Also, solid demand for the company’s Automated Peritoneal Dialysis (APD) cyclers – AMIA in the U.S. and HOMECHOICE CLARIA in international markets – boosted sales.
Guidance
For full-year 2017, Baxter projects earnings in the band of $2.20 to $2.28 per share, up from the previously issued range of $2.10 to $2.18 (from continuing operations, before special items). Furthermore, the company expects sales growth in the band of 2% to 3% at cc.
For the first quarter of 2017, Baxter estimates sales growth of about 2% at cc. Adjusted earnings are forecasted in the range of 55 cents to 57 cents per share.
Key Picks
Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , Hologic, Inc. (HOLX - Free Report) and Sunshine Heart Inc . Notably, all the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. The stock represents an impressive one-year return of 61.9%.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 17.5%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
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