The 10-second takeaway
For the quarter ended March 31 (Q1), Baxter International beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share grew.
Gross margin and operating margin dropped, while net margin was steady.
Baxter International booked revenue of $3.39 billion. The 16 analysts polled by S&P Capital IQ hoped for revenue of $3.3 billion on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $3.28 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.01. The 19 earnings estimates compiled by S&P Capital IQ forecast $1 per share on the same basis. GAAP EPS of $1.04 for Q1 were 6.1% higher than the prior-year quarter's $0.98 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 50.6%, 40 basis points worse than the prior-year quarter. Operating margin was 20.5%, 220 basis points worse than the prior-year quarter. Net margin was 17.4%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $3.55 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $14.2 billion. The average EPS estimate is $4.53.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 638 members rating the stock outperform and 33 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 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 $64.06.
The health-care investing landscape is littered with also-rans and a few major winners. Is Baxter International the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Click here for instant access to this free report.
- Add Baxter International to My Watchlist.
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 may not 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.