Baxter Earnings: What To Look For From BAX

Healthcare company Baxter International (NYSE:BAX) will be reporting results this Thursday before market open. Here’s what you need to know.

Baxter beat analysts’ revenue expectations last quarter, reporting revenues of $2.70 billion, up 2.9% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

Is Baxter a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Baxter’s revenue to be flat year on year, slowing from the 4.3% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Baxter has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Baxter’s peers in the healthcare equipment and supplies segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Abbott Laboratories delivered year-on-year revenue growth of 13%, beating analysts’ expectations by 0.7%, and Intuitive Surgical reported revenues up 18.5%, topping estimates by 2.5%. Abbott Laboratories traded up 12.8% following the results while Intuitive Surgical was down 14.1%.

Read our full analysis of Abbott Laboratories’s results here and Intuitive Surgical’s results here.

There has been positive sentiment among investors in the healthcare equipment and supplies segment, with share prices up 4.4% on average over the last month. Baxter is up 11.3% during the same time and is heading into earnings with an average analyst price target of $22.96 (compared to the current share price of $24.50).

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.