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With a market cap of $17.9 billion, Illinois-based Baxter International Inc. (BAX) is a global leader in medical technology. It specializes in renal care, medication delivery, pharmaceuticals, and kidney care solutions. The company is expected to announce its fiscal Q2 earnings results on Thursday, Jul. 25.
Ahead of the event, analysts expect BAX to report a profit of $0.66 per share, up 20% from $0.55 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. Strong demand for its infusion pumps and dialysis products helped the company surpass the consensus EPS estimate by 6.6% in the most recent quarter.
For fiscal 2024, analysts expect BAX to report EPS of $2.91, up 11.9% from $2.60 in fiscal 2023.
BAX has dipped 23.5% over the past 52 weeks, trailing behind both the broader S&P 500 Index's ($SPX) 25.8% rise and the S&P 500 Healthcare Sector SPDR's (XLV) 13.3% increase over the same period.
Shares of Baxter International soared on Feb. 8 after its better-than-expected Q4 earnings result, with notable performance in its Medical Products and Therapies segment and a favorable supply chain environment. However, despite beating Q1 earnings estimates, the stock pulled back nearly 8.5% on May 2 due to investor concerns over the timing and potential complexities of the planned separation of its kidney care segment, which is expected in the second half of 2024.
Analysts' consensus rating on Baxter International stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 14 analysts covering the stock, three recommend a "Strong Buy," and 11 advise a "Hold." This consensus is slightly less bullish than three months ago, with four analysts suggesting a "Strong Buy."
The average analyst price target for BAX is $42.77, indicating a modest potential upside of 21.4% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
