Baxter International Inc. BAX is scheduled to release third-quarter 2024 results on Nov. 8, before the opening bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 3.03%. BAX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 3.74%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Q3 Estimates
Currently, the consensus estimate for revenues is pegged at $3.84 billion, indicating an improvement of 3.6% from the prior-year quarter’s reported figure. However, the consensus mark for earnings is pinned at 78 cents per share, implying a 14.7% year-over-year improvement.
Factors to Note
For the third quarter, Baxter expects sales to grow 3-4% on a reported basis and 4-5% at constant currency (cc). Adjusted earnings per share are expected to be between 77 cents and 79 cents.
Sustained demand and the positive impact of pricing are likely to have aided sales for the Medical Products and Therapies segment. Infusion Therapies and Technologies sales are likely to have benefited from the IV Solutions portfolio in the international market, as well as the solid performance of the infusion system portfolio. Moreover, recent FDA approvals for Novum IQ volume infusion pump and Dose IQ Safety Software might have accelerated growth for the segment. Moreover, the launch of Helion Integrated Surgical System in Thailand in July should have brought in additional revenues.
Sales in the Pharmaceutical segment are expected to have been boosted by strong growth in the U.S. injectables portfolio on the back of new launches as well as continued strong demand for services within the drug compounding portfolio internationally. The launch of five injectable products in the United States in April to provide ready-to-use formulations might have brought in additional revenues.
In May, Clinolipid received the FDA approval for an expanded indication to be used in pediatric patients, including preterm and term neonates. Softness in the primary care market is likely to have hurt Front line Care sales during the third quarter.
Baxter International Inc. Price and EPS Surprise
Baxter International Inc. price-eps-surprise | Baxter International Inc. Quote
Renal Care segment sales reflected a recovering trend during the previous few quarters. The growth in sales during the second quarter was driven by positive pricing and demand for Acute Therapies and Peritoneal Dialysis products. This was partially offset by a decline in sales of in-center hemodialysis products due to select product and market exits. The trend is likely to have continued in the third quarter.
Sales in the Acute Therapies segment are also expected to have benefited from growth in the United States and strength in the APAC region.
The company is planning to complete the divestment of Renal Care and Acute Therapies segments during late 2024 or early 2025. It is currently in discussion with Carlyle Group for the divestment of its kidney care spinoff, Vantive, in a deal valued at more than $4 billion, including debt. BAX may provide an update on its progress during the third quarter earnings call.
Meanwhile, ongoing transformation initiatives are likely to have enhanced operational efficiencies, which might have led to lower expenses during the quarter. However, inflationary pressure, as well as freight and supply-chain constraints, are likely to have increased cost of goods, thereby hurting the gross margin. However, these headwinds are anticipated to have been softer than those in the previously reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Baxter this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% for Baxter.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Baxter currently has a Zacks Rank #3 (Hold).
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to come up with an earnings beat this reporting cycle.
Brainsway BWAY has an Earnings ESP of +100.00% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has risen 69.4% year to date. BWAY’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 139.68%.
Haemonetics HAE has an Earnings ESP of +0.18% and a Zacks Rank of 2 at present.
The stock fell 12.3% year to date. HAE’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 3.46%.
ICU Medical ICUI has an Earnings ESP of +2.67% and a Zacks Rank of 3 at present.
The stock has risen 73.8% year to date. ICUI’s earnings beat estimates in the last reported quarter. It has a trailing four-quarter average earnings surprise of 32.06%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>Baxter International Inc. (BAX) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
ICU Medical, Inc. (ICUI) : Free Stock Analysis Report
Brainsway Ltd. Sponsored ADR (BWAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
