Baxter International Faces Tough Q4 Ahead, Analysts Predict Earnings Drop
Anticipated quarterly earnings show a significant decline for the healthcare company.
Baxter International Inc. (BAX), based in Deerfield, Illinois, is a prominent player in the healthcare industry, dedicated to improving lives through innovative medical solutions. With a market capitalization of $15.8 billion, Baxter focuses on enhancing patient care with essential products in renal care, pharmaceuticals, and advanced surgical technologies. The company is scheduled to announce its Q4 earnings on Thursday, February 13.
Leading up to the earnings announcement, analysts project that Baxter will report a profit of $0.52 per share, indicating a sharp decline of 40.9% compared to $0.88 per share in the same quarter last year. Notably, Baxter has consistently exceeded Wall Street’s expectations in its earnings over the last four quarters.
In the company’s recent Q3 report, Baxter achieved an EPS of $0.80, which surpassed estimates by 2.6%. This success was fueled by high demand for its Medical Products & Therapies, particularly following the popular launch of the Novum IQ infusion pump in the U.S.
Looking ahead to fiscal 2024, analysts predict that BAX will generate an EPS of $1.83, reflecting a decline of 29.6% from $2.60 in fiscal 2023.
Baxter’s stock has dropped 19.9% over the past year, significantly underperforming compared to the S&P 500 Index’s ($SPX) gain of 26.5% and the Health Care Select Sector SPDR Fund’s (XLV) slight increase in the same timeframe.
After announcing its Q3 earnings on November 8, Baxter’s shares fell by 3.9%. The company reported a revenue of $3.85 billion, just above the consensus estimate of $3.84 billion. Baxter has adjusted its 2024 guidance, acknowledging the discontinuation of Kidney Care operations and the repercussions of Hurricane Helene, while excluding the discontinued operations of BPS. For the full year, Baxter anticipates sales growth between 1% and 2%.
The consensus rating among analysts for BAX stock remains cautious, with an average recommendation categorized as “Hold.” Out of 13 analysts monitoring the stock, two suggest a “Strong Buy,” ten maintain a “Hold,” and one recommends a “Moderate Sell.” The average price target for BAX stands at $37.12, indicating a possible upside of 19.8% from its current position.
On the date of publication, Rashmi Kumari did not hold any positions in the securities mentioned in this article. All information and data are provided solely for informational purposes. For further details, please review the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
