The 10-second takeaway
For the quarter ended June 30 (Q2), Baxter International beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share increased.
Gross margins increased, operating margins dropped, net margins expanded.
Baxter International reported revenue of $3.57 billion. The 15 analysts polled by S&P Capital IQ expected revenue of $3.53 billion on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $3.54 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 $1.12. The 19 earnings estimates compiled by S&P Capital IQ anticipated $1.11 per share. GAAP EPS of $1.19 for Q2 were 11% higher than the prior-year quarter's $1.07 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 52.4%, 50 basis points better than the prior-year quarter. Operating margin was 21.8%, 170 basis points worse than the prior-year quarter. Net margin was 18.5%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.52 billion. On the bottom line, the average EPS estimate is $1.15.
Next year's average estimate for revenue is $14.19 billion.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 640 members out of 671 rating the stock outperform, and 31 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 $61.94.
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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 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.