Healthcare company Baxter International (NYSE: BAX) will be announcing earnings results this Thursday before market hours. Here’s what you need to know.
Baxter beat analysts’ revenue expectations last quarter, reporting revenues of $2.96 billion, up 5.3% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
Is Baxter a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Baxter’s revenue to grow 2.7% year on year, slowing from the 5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Baxter has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Baxter’s peers in the healthcare equipment and supplies segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Neogen delivered year-on-year revenue growth of 6.5%, beating analysts’ expectations by 7%, and Abbott Laboratories reported revenues up 14.5%, in line with consensus estimates. Neogen traded down 2.3% following the results while Abbott Laboratories’s stock price was unchanged.
Read our full analysis of Neogen’s results here and Abbott Laboratories’s results here.
There has been positive sentiment among investors in the healthcare equipment and supplies segment, with share prices up 3.6% on average over the last month. Baxter is up 5.8% during the same time and is heading into earnings with an average analyst price target of $27.92 (compared to the current share price of $24.92).
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