Baxter International’s Financial Performance Shows Mixed Results

With a market capitalization of $15.6 billion, Baxter International Inc. (BAX) operates as a leading healthcare company specializing in medical products and therapies. The firm primarily focuses on renal care, medication delivery, and pharmaceuticals while headquartered in Deerfield, Illinois. Baxter offers a variety of healthcare solutions for hospitals, clinics, and home care settings worldwide.

Stock Performance Overview

BAX has struggled against the broader market over the last 52 weeks, with shares decreasing by 17% during this period. In comparison, the S&P 500 Index ($SPX) has risen by 8.6%. However, year-to-date, Baxter’s stock has seen a 3.9% increase, notably outperforming the SPX, which has declined by 4.4%.

Examining comparative performances, Baxter has underperformed relative to the Health Care Select Sector SPDR Fund’s (XLV) 4.1% drop over the same time frame.

Recent Earnings and Forecasts

Despite reporting a stronger-than-expected Q1 2025 adjusted EPS of $0.55 and revenue reaching $2.6 billion, shares fell by 1.6% on May 1. The company absorbed $98 million in costs related to Hurricane Helene, revealing operational vulnerabilities, particularly at its North Cove facility, which supplies 60% of U.S. IV fluids. Although Baxter raised its lower EPS guidance for 2025 from $2.45 to $2.47, the upper range stayed the same at $2.55.

For the fiscal year ending in December 2025, analysts project a 32.3% year-over-year growth in EPS, reaching $2.50. The company’s earnings surprise record appears positive, having met or exceeded consensus estimates for the last four quarters.

Analyst Ratings

Among 15 analysts tracking Baxter, the consensus rating is classified as a “Moderate Buy,” consisting of five “Strong Buy” ratings, nine “Holds,” and one “Moderate Sell.” This rating reflects a more optimistic outlook than three months ago when only two “Strong Buy” ratings were noted.

As of May 2, Stifel adjusted its price target for Baxter International to $36 while maintaining a “Buy” rating, noting strong Q1 results. Baxter’s reported sales of $2.6 billion represent its ninth consecutive quarter of exceeding expectations.

Currently, BAX is trading below the average price target of $36.89. The highest target price of $44 suggests a potential upside of approximately 45.2% from current pricing.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view 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.