Healthcare company Baxter International (NYSE: BAX) will be announcing earnings results this Thursday before market hours. Here’s what to look for.
Baxter beat analysts’ revenue expectations last quarter, reporting revenues of $2.97 billion, up 8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS 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 5.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 medical devices & supplies - diversified segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Neogen’s revenues decreased 4.4% year on year, beating analysts’ expectations by 3.4%, and Abbott Laboratories reported revenues up 7.8%, topping estimates by 1.3%. Neogen traded down 8.9% following the results while Abbott Laboratories was also down 4.7%.
Read our full analysis of Neogen’s results here and Abbott Laboratories’s results here.
There has been positive sentiment among investors in the medical devices & supplies - diversified segment, with share prices up 10.8% on average over the last month. Baxter is up 14% during the same time and is heading into earnings with an average analyst price target of $22.12 (compared to the current share price of $18.02).
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.
