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Baxter International (BAX) Beats on Earnings And Sales in Q3

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Headquartered in Deerfield, Illinois, Baxter International Inc.BAX is a global medical products and services company. The company's Hospital Products business manufactures products used in the delivery of fluids and drugs to patients. Renal portfolio is mainly for patients with kidney failure/disease and their healthcare providers.

Currently, Baxter International has a Zacks Rank #2 (Buy) but that could change following its third-quarter 2017 earnings report which has just released. (You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here ) We have highlighted some of the key details from the just-released announcement below:

Earnings: Baxter's adjusted earnings of 64 cents per share beat the Zacks Consensus Estimate of 59 cents and increased by 8 cents from the year-ago quarter.

Revenues: Baxter posted sales of $2.707 billion, beating the Zacks Consensus Estimate for revenues of $2.664 billion. At constant currency (cc), revenues increased almost 6% on a year-over-year basis.

Baxter International Inc. Price and EPS Surprise

Baxter International Inc. Price and EPS Surprise | Baxter International Inc. Quote

Key Stats: In the reported quarter, Baxter finally completed the acquisition of Claris Injectables Limited. Coming to segmental revenues, hospital products sales increased 7% at cc, while renal products increased 3% from the year-ago quarter.

Major Factors: Hospital Products sales in the quarter were driven by solid sales in the U.S. fluid systems, and select anesthesia and critical care products. Hospital Sales were also favorably impacted by solid demand for injectable pharmaceuticals and hospital pharmacy compounding services. Renal products sales were driven by improved performance across all major product lines and therapies globally.

Meanwhile, Baxter projects fourth quarter revenues to be negatively impacted by approximately $70 million, courtesy of the temporary operational disruptions resulting from Hurricane Maria. Adjusted earnings for the fourth quarter are expected in the band of 56 cents to 59 cents per diluted share.

However, for the full year Baxter estimates sales growth of approximately 4% at cc. Adjusted earnings for the full year are expected in the band of $2.40 to $2.43 per diluted share.

Stock Price: Shares have risen roughly 45.1% year to date, while the broader industry has gained 22.5% over the same time frame. However, following the earnings release, share prices did not show any movement in the pre-market trading session.

Check back later for our full write up on this Baxter International report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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