Can Baxter International Meet These Numbers?

Seth Jayson, The Motley Fool
Updated

Baxter International (NYS: BAX) is expected to report Q2 earnings around July 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Baxter International's revenues will shrink 0.0% and EPS will grow 3.7%.

The average estimate for revenue is $3.53 billion. On the bottom line, the average EPS estimate is $1.11.


Revenue details
Last quarter, Baxter International booked revenue of $3.39 billion. GAAP reported sales were 3.2% higher than the prior-year quarter's $3.28 billion.

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

EPS details
Last quarter, non-GAAP EPS came in at $1.01. GAAP EPS of $1.04 for Q1 were 6.1% higher than the prior-year quarter's $0.98 per share.

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

Recent performance
For the preceding quarter, gross margin was 50.6%, 40 basis points worse than the prior-year quarter. Operating margin was 20.5%, 220 basis points worse than the prior-year quarter. Net margin was 17.4%, about the same as the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $14.20 billion. The average EPS estimate is $4.52.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 641 members out of 673 rating the stock outperform, and 32 members rating it underperform. Among 195 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 189 give Baxter International a green thumbs-up, and six 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 $64.13.

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At the time thisarticle was published 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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