The 10-second takeaway
For the quarter ended June 30 (Q2), Baxter International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share expanded. GAAP earnings per share contracted.
Gross margins expanded, operating margins expanded, net margins shrank.
Baxter International reported revenue of $3.67 billion. The 17 analysts polled by S&P Capital IQ expected to see a top line of $3.70 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 $1.16. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.13 per share. Non-GAAP EPS of $1.16 for Q2 were 3.6% higher than the prior-year quarter's $1.12 per share. GAAP EPS of $1.07 for Q2 were 10% lower than the prior-year quarter's $1.19 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 52.8%, 40 basis points better than the prior-year quarter. Operating margin was 22.6%, 80 basis points better than the prior-year quarter. Net margin was 16.1%, 240 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.99 billion. On the bottom line, the average EPS estimate is $1.18.
Next year's average estimate for revenue is $15.48 billion. The average EPS estimate is $4.66.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 643 members out of 674 rating the stock outperform, and 31 members rating it underperform. Among 215 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 210 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 $77.43.
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