Baxter Reports Quarterly Pace; Shares down 2.7%

Baxter (New York Stock Exchange: BAX) reported better-than-expected fourth quarter results, beating both earnings and revenue estimates, driven by robust demand, driving strong performance across all regions.

However, despite the pace, shares of the US multinational healthcare company fell 2.7% on February 17, after BAX released earnings per share (EPS) guidance for fiscal year 2022 below market expectations. analysts.

Fourth quarter figures

Adjusted earnings of $1.04 per share were up 30% year over year and were one cent higher than analysts’ expectations of $1.03 per share. The company reported earnings of $0.80 per share for the prior year period.

Revenue jumped 10% year-over-year to $3.5 billion and topped consensus estimates of $3.35 billion. The revenue increase reflects strong demand for certain Baxter products and therapies across all regions during the pandemic, which was partially offset by fewer surgeries due to the emergence of the Omicron variant.

Outlook for fiscal year 2022

Based on the strong fourth quarter results, management provided financial guidance for fiscal year 2022. The company expects adjusted earnings to be between $4.25 and $4.35 per share, while the consensus estimate is set at $4.36 per share. Sales growth should be between 24% and 25%.

For the first quarter, adjusted earnings are expected to be between $0.79 and $0.82 per share.

CEO Comments

BAX CEO José (Joe) E. Almeida said, “Our acquisition of Hillrom in December 2021 creates new potential for our team to advance connected care solutions, expand portfolio access and to realize efficiencies to generate added value for patients, clinicians, employees and investors. and other stakeholders.

Analyst recommendation

Overall, the stock has a strong buy consensus rating based on 7 buys and 1 hold. Baxter International’s stock average forecast of $99.63 implies upside potential of 20.3% from current levels.

TipRanks smart score

BAX earns a “Perfect 10” on TipRanks’ Smart Score rating system, indicating the stock has strong potential to outperform market expectations.

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