Baxter International Beats on Revenue, Matches Expectations on EPS

Baxter International (NYS: BAX) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Baxter International beat slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.

Gross margins shrank, operating margins dropped, net margins expanded.

Revenue details
Baxter International reported revenue of $3.75 billion. The 15 analysts polled by S&P Capital IQ anticipated revenue of $3.71 billion on the same basis. GAAP reported sales were 4.4% higher than the prior-year quarter's $3.59 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.26. The 22 earnings estimates compiled by S&P Capital IQ predicted $1.26 per share. GAAP EPS of $0.89 for Q4 were 8.5% higher than the prior-year quarter's $0.82 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.8%, 100 basis points worse than the prior-year quarter. Operating margin was 15.3%, 960 basis points worse than the prior-year quarter. Net margin was 13.2%, 30 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.51 billion. On the bottom line, the average EPS estimate is $1.09.

Next year's average estimate for revenue is $14.91 billion. The average EPS estimate is $4.82.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 632 members out of 664 rating the stock outperform, and 32 members rating it underperform. Among 222 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 217 give Baxter International a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Baxter International is outperform, with an average price target of $68.12.

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The article Baxter International Beats on Revenue, Matches Expectations on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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