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.
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