The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Baxter International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded.
Gross margins increased, operating margins shrank, net margins grew.
Baxter International tallied revenue of $3.48 billion. The 16 analysts polled by S&P Capital IQ expected a top line of $3.52 billion on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $3.48 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.14. The 21 earnings estimates compiled by S&P Capital IQ averaged $1.14 per share. GAAP EPS of $1.06 for Q3 were 5.0% higher than the prior-year quarter's $1.01 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.1%, 120 basis points better than the prior-year quarter. Operating margin was 22.3%, 140 basis points worse than the prior-year quarter. Net margin was 16.8%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.71 billion. On the bottom line, the average EPS estimate is $1.26.
Next year's average estimate for revenue is $14.16 billion. The average EPS estimate is $4.53.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 634 members out of 666 rating the stock outperform, and 32 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 $62.93.
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