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Valued at a market cap of $18.7 billion, Baxter International Inc. (BAX) is a leading global medical technology company. Based in Deerfield, Illinois, it specializes in diverse healthcare products, focusing on renal care, hospital solutions, and pharmaceuticals to improve patient outcomes worldwide. The company is expected to unveil its fiscal Q3 earnings results before the market opens on Friday, Nov. 8.
Ahead of the event, analysts forecast the drug and medical device maker to post a profit of $0.78 per share, reflecting a growth of 14.7% from $0.68 per share in the same quarter last year. The company has consistently surpassed Wall Street's bottom-line projections in the past four quarters. BAX surpassed the consensus EPS estimate by a margin of 3% in the last reported quarter.
For fiscal 2024, analysts expect BAX to report EPS of $2.96, a 13.9% increase from $2.60 in fiscal 2023.
Over the past 52 weeks, BAX has returned 12.8%, underperforming the broader S&P 500 Index's ($SPX) 36.8% rise and the Health Care Select Sector SPDR Fund's (XLV) 17.1% gain over the same period.
Shares of Baxter International climbed 6.6% on Aug. 6 after the company reported stronger-than-expected Q2 adjusted EPS of $0.68 and revenue of $3.8 billion. Sales in key segments like Pharmaceuticals grew strongly, with double-digit increases driven by new product launches and high demand for drug compounding, while Medical Products & Therapies benefited from the launch of the Novum IQ infusion pump. Additionally, the company raised its full-year adjusted EPS guidance to $2.93–$3.01, and progress toward the spin-off of its Kidney Care segment, expected by late 2024 or early 2025, contributed to positive investor sentiment.
Analysts' consensus rating on BAX stock is cautious, with a "Hold" rating overall. Out of 13 analysts covering the stock, opinions include two "Strong Buys," 10 "Holds," and one "Moderate Sell." This configuration is slightly less bullish than three months ago, with three analysts suggesting a "Strong Buy." The average analyst price target for BAX is $40.75, suggesting a modest potential upside of 10.9% from 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.
