We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Baxter International (BAX) Q4 Earnings Beat, Revenues Lag
Read MoreHide Full Article
Baxter International Inc.(BAX - Free Report) reported fourth-quarter 2016 adjusted earnings of 57 cents per share, which surpassed the Zacks Consensus Estimate by 5 cents and were well above the year-ago figure of 43 cents.
Over the last four trailing quarters, the company posted positive earnings surprises, the average being 27.02%. Currently, Baxter has a Zacks Rank #3 (Hold).
The company posted sales of $2.64 billion, marginally missing the Zacks Consensus Estimate of $2.65 billion. At constant currency (cc), revenues increased 2% on a year-over-year basis.
For the full year, Baxter reported adjusted earnings of $1.96 per share, an increase of 42% on a year-over-year basis. The company posted full-year revenues of $10.2 billion, up 4% on year-over-year basis at cc.
Stock Performance
Over the last three months, the stock added 2.5%, higher than the Zacks classified Medical Products sub-industry’s gain of almost 1%. However, the current level compares unfavorably with the S&P 500’s return of 8.4% over the same time frame.
Meanwhile, a long-term expected earnings growth rate of 11.36% instills confidence in investors.
Segment Details
U.S.sales were up 5% on a year-over-year basis to $1.1 billion. International sales increased 1% at cc to $1.5 billion.
Adjusting for the impact of foreign exchange and increased competition for the company’s cyclophosphamide, Baxter’s sales were up 7% in the domestic market. Internationally, sales increased 3% in the reported quarter.
Hospital products sales inched up 1% at cc on a year-over-year basis to $1.6 billion. Sales in this segment were driven by solid demand for IV solutions, nutritional therapies and IV access administration sets.
Renal products sales increased 5% to $1 billion. Renal products sales were driven by peritoneal dialysis products as well as increased global demand for continuous renal replacement therapies.
Guidance
For full-year 2017, the company projects earnings from continuing operations, before special items, in the band of $2.10 to $2.18 per share.
For the first quarter of 2017, Baxter expects sales growth in the range of 3% to 4% at cc. Adjusted earnings are forecast in the range of 50 cents to 52 cents per share.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 144.6%.
Avinger projects sales growth of 2.3% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.
Inogen has a long-term expected earnings growth rate of approximately 17.5%. Notably, the stock represents an impressive one-year return of 96%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Baxter International (BAX) Q4 Earnings Beat, Revenues Lag
Baxter International Inc.(BAX - Free Report) reported fourth-quarter 2016 adjusted earnings of 57 cents per share, which surpassed the Zacks Consensus Estimate by 5 cents and were well above the year-ago figure of 43 cents.
Over the last four trailing quarters, the company posted positive earnings surprises, the average being 27.02%. Currently, Baxter has a Zacks Rank #3 (Hold).
The company posted sales of $2.64 billion, marginally missing the Zacks Consensus Estimate of $2.65 billion. At constant currency (cc), revenues increased 2% on a year-over-year basis.
Baxter International Inc. Price and EPS Surprise
Baxter International Inc. Price and EPS Surprise | Baxter International Inc. Quote
For the full year, Baxter reported adjusted earnings of $1.96 per share, an increase of 42% on a year-over-year basis. The company posted full-year revenues of $10.2 billion, up 4% on year-over-year basis at cc.
Stock Performance
Over the last three months, the stock added 2.5%, higher than the Zacks classified Medical Products sub-industry’s gain of almost 1%. However, the current level compares unfavorably with the S&P 500’s return of 8.4% over the same time frame.
Meanwhile, a long-term expected earnings growth rate of 11.36% instills confidence in investors.
Segment Details
U.S.sales were up 5% on a year-over-year basis to $1.1 billion. International sales increased 1% at cc to $1.5 billion.
Adjusting for the impact of foreign exchange and increased competition for the company’s cyclophosphamide, Baxter’s sales were up 7% in the domestic market. Internationally, sales increased 3% in the reported quarter.
Hospital products sales inched up 1% at cc on a year-over-year basis to $1.6 billion. Sales in this segment were driven by solid demand for IV solutions, nutritional therapies and IV access administration sets.
Renal products sales increased 5% to $1 billion. Renal products sales were driven by peritoneal dialysis products as well as increased global demand for continuous renal replacement therapies.
Guidance
For full-year 2017, the company projects earnings from continuing operations, before special items, in the band of $2.10 to $2.18 per share.
For the first quarter of 2017, Baxter expects sales growth in the range of 3% to 4% at cc. Adjusted earnings are forecast in the range of 50 cents to 52 cents per share.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Addus Glaukos Corporation (GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Inogen, Inc (INGN - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 144.6%.
Avinger projects sales growth of 2.3% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.
Inogen has a long-term expected earnings growth rate of approximately 17.5%. Notably, the stock represents an impressive one-year return of 96%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>