Baxter International Inc.
) revealed a marginal 1.1% fall in adjusted net earnings to $692
million in the fourth quarter of 2013 from $700 million in the
year-ago quarter. However, on per share basis, adjusted net
earnings were flat at $1.26 compared with the year ago level but
beat the Zacks Consensus Estimate by a penny.
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For full year 2013, net earnings inched up 2.0% to $2,567 million
from $2,516 million a year ago. On per share basis, net earnings
rose 3.1% to $4.67 from $4.53 in 2012 and were in line with the
Zacks Consensus Estimate.
Revenues for the quarter went up 16.4% to $4,368 million globally
and exceeded the Zacks Consensus Estimate of $4,249 million.
Excluding the contribution from Gambro, revenues in the quarter
grew 5% to $4.0 billion (or 6% excluding the impact of foreign
Sales within the U.S. escalated 13% to $1,781 million while
international sales rose 19% (20% excluding the impact of foreign
currency) to $2,587 million in the quarter.
For full year 2013, Baxter's global sales rose 7.5% to $15,259
million, which is slightly higher than the Zacks Consensus
Estimate of $15,135 million. Revenues associated with the Gambro
acquisition were $513 million in the year.
zoomed 5.3% (6% excluding the impact of foreign currency) to
$1.776 million in the quarter. The increase was attributable to
double-digit growth and strong demand for the Baxter's hemophilia
therapies, including ADVATE (Antihemophilic Factor Recombinant,
Plasma/Albumin-Free Method) and FEIBA (an inhibitor therapy) in
the U.S. and Europe, as well as for biosurgery products.
surged 25.5% (or 27% excluding the impact of foreign currency) to
$2,592 million. Revenues associated with the Gambro acquisition
were $413 million in the fourth quarter. Excluding foreign
currency and the contribution from the acquisition, revenues from
the segment increased 7% due to solid growth across the entire
BAX had cash and cash equivalents of $2,733 million as of Dec 31,
2013, down from $3,270 million as of Dec 31, 2012. Total debt
stood at $9,166 million as of Dec 31, 2013, up significantly by
54.6% from $5,930 million as of Dec 31, 2012.
In 2013, BAX generated cash flow from operations of $3,198
million, up nearly 3% from $3,106 million in 2012. Capital
expenditures declined 31.4% to $1,525 million from $1,161 million
Baxter returned an over $1.9 billion to shareholders through
share repurchases of 13.0 million shares worth $913 million and
dividends totaling $1.0 billion, reflecting about 27% increase in
dividend payments from the prior-year period.
For the first quarter of 2014, Baxter expects sales to grow
between 13 and 14%, barring the impact of foreign currency. The
company also expects adjusted earnings in the range of $1.06 to
$1.09 per share in the quarter, which is lower than the current
Zacks Consensus Estimate of $1.13.
For full year 2014, BAX anticipates sales growth in the range of
9 to 10%, excluding the impact of foreign exchange. The company
also expects adjusted earnings between $5.05 and $5.25 per share
and operating cash flow of $3.5 billion for the year. This
compared with the Zacks Consensus Estimate for 2014 earnings of
Currently, Baxter has a Zacks Rank #3 (Hold). Some better-ranked
stocks in the medical products industry include
Cardiovascular Systems Inc.
). Both Cardiovascular Systems and NuVasive carry a Zacks Rank #1
(Strong Buy), while Covidien carries a Zacks Rank #2 (Buy).