Baxter International Beats on Revenue, Matches Expectations on EPS

Seth Jayson, The Motley Fool
Updated

Baxter International (NYS: BAX) reported earnings on July 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Baxter International beat slightly on revenues and met expectations on earnings per share.

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


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

Revenue details
Baxter International reported revenue of $3.57 billion. The 15 analysts polled by S&P Capital IQ expected revenue of $3.53 billion on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $3.54 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
EPS came in at $1.12. The 19 earnings estimates compiled by S&P Capital IQ anticipated $1.11 per share. GAAP EPS of $1.19 for Q2 were 11% higher than the prior-year quarter's $1.07 per share.

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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 52.4%, 50 basis points better than the prior-year quarter. Operating margin was 21.8%, 170 basis points worse than the prior-year quarter. Net margin was 18.5%, 110 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.52 billion. On the bottom line, the average EPS estimate is $1.15.

Next year's average estimate for revenue is $14.19 billion.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 640 members out of 671 rating the stock outperform, and 31 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 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 $61.94.

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

Seth Jaysonhad 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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