It has been about a month since the last earnings report for Baxter International (BAX Quick QuoteBAX - Free Report) . Shares have added about 1.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Baxter due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Baxter Q1 Earnings and Revenues Surpass Estimates

Baxter International Inc. reported first-quarter 2020 adjusted earnings of 82 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 12.3%. The bottom line also improved 9.3% from the year-ago quarter.

Revenues of $2.80 billion beat the Zacks Consensus Estimate of $2.75 billion by 1.8%. The top line improved 6.2% year over year on a reported basis and 8% on both constant currency (cc) and operational basis.

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 $1.49 billion, up 6.4% on a year-over-year basis and 8% at cc.

In EMEA, revenues totaled $754 million, up 6.6% from the year-ago quarter and 10% at cc.

In APAC, revenues of $549 million improved5.2% from the prior-year quarter and 9% at cc.

Segmental Details

Renal Care

This segment reported revenues of $870 million in the quarter under review, up 1.9% year over year. Revenues at the segment increased 4% at cc.

Medication Delivery

Revenues at the segment grossed $690 million, up 8.8% from the year-ago quarter and 10% at cc.

Pharmaceuticals

Revenues at the segment amounted to $527 million, up 3.3% from the year-ago quarter and 6% at cc.

Clinical Nutrition

Revenues at the segment were $220 million, up 7.3% from the year-ago quarter and 10% at cc.

Advanced Surgery

Revenues at the segment totaled $224 million, up 12.6% from the year-ago quarter and 14% at cc.

Acute Therapies

This segment reported revenues of $156 million, up 20.9% from the prior-year quarter and 23% at cc.

Other

Revenues in the segment grossed $115 million, up 7.5% on a year-over-year basis and 9% at cc.

Margin Analysis

Baxter registered gross profit of $1.16 billion in the first quarter, up 7.7% year over year. As a percentage of revenues, gross margin expanded 60 bps on a year-over-year basis at 41.5% in the first quarter.

Operating income rose 6.7% year over year to $409 million in the quarter under review. As a percentage of revenues, operating margin expanded 10 bps to 14.6% in the quarter under review.

Guidance

Due to the high-degree of uncertainty surrounding COVID-19 and the potential financial impact from the same, Baxter has refrained from issuing any guidance for the second quarter or full-year 2020.

How Have Estimates Been Moving Since Then?

Estimates revision followed a downward path over the past two months. The consensus estimate has shifted -12.64% due to these changes.

VGM Scores

Currently, Baxter has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Baxter has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.