The 10-second takeaway
For the quarter ended March 31 (Q1), Baxter International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share increased. GAAP earnings per share dropped.
Gross margins grew, operating margins expanded, net margins contracted.
Baxter International reported revenue of $3.45 billion. The 17 analysts polled by S&P Capital IQ foresaw a top line of $3.48 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.05. The 21 earnings estimates compiled by S&P Capital IQ averaged $1.05 per share. Non-GAAP EPS of $1.05 for Q1 were 4.0% higher than the prior-year quarter's $1.01 per share. GAAP EPS of $1.00 for Q1 were 3.8% lower than the prior-year quarter's $1.04 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 50.9%, 30 basis points better than the prior-year quarter. Operating margin was 20.7%, 20 basis points better than the prior-year quarter. Net margin was 16.0%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.71 billion. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $15.56 billion. The average EPS estimate is $4.67.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 633 members out of 664 rating the stock outperform, and 31 members rating it underperform. Among 214 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 209 give Baxter International a green thumbs-up, and five 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 $72.19.
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