The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Baxter International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly, and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins dropped, net margins increased.
Baxter International recorded revenue of $3.59 billion. The 15 analysts polled by S&P Capital IQ expected to see revenue of $3.57 billion. Sales were 2.7% higher than the prior-year quarter's $3.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.17. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share on the same basis. GAAP EPS of $1.01 for Q4 were 14% higher than the prior-year quarter's $0.72 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 49.1%, 90 basis points worse than the prior-year quarter. Operating margin was 17.4%, 590 basis points worse than the prior-year quarter. Net margin was 12.9%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.30 billion. On the bottom line, the average EPS estimate is $1.00.
Next year's average estimate for revenue is $14.19 billion. The average EPS estimate is $4.55.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Baxter International is outperform, with an average price target of $63.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley 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 don't 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.