Baxter International (BAX, Financial) is set to engage with investors during a post-first-quarter earnings call on May 2. The call is part of an ongoing series of interactions aimed at providing updates on the company's financial performance and strategic direction.
The session, which will feature Marcus, a Medical Supplies & Devices Analyst, conversing with SVP of Investor Relations, Trachtman, offers a platform for discussing the financial outcomes from the first quarter. Hosted by JPMorgan, the call is scheduled to commence at 11 a.m. and is expected to draw significant interest from investors keen to understand the implications of recent developments on Baxter's financial trajectory.
As the company continues to navigate the competitive landscape of medical supplies and devices, this call provides a crucial opportunity for stakeholders to gain insights directly from company executives.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Baxter International Inc (BAX, Financial) is $38.92 with a high estimate of $53.85 and a low estimate of $30.00. The average target implies an upside of 28.78% from the current price of $30.22. More detailed estimate data can be found on the Baxter International Inc (BAX) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Baxter International Inc's (BAX, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Baxter International Inc (BAX, Financial) in one year is $43.61, suggesting a upside of 44.31% from the current price of $30.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Baxter International Inc (BAX) Summary page.
BAX Key Business Developments
Release Date: February 20, 2025
- Fourth-Quarter 2024 Global Sales: $2.75 billion, increased 1% on a reported basis and 2% on a constant currency basis.
- Full-Year 2024 Sales: $10.6 billion, increased 3% on both reported and constant currency basis.
- Fourth-Quarter Adjusted Earnings Per Share (EPS): $0.58, ahead of prior guidance of $0.50 to $0.53.
- Full-Year 2024 Adjusted EPS: $1.89, increased 11% over the prior year.
- Medical Products & Therapies (MPT) Sales: $1.3 billion in Q4, increased 1%; $5.2 billion for full year, advanced 5%.
- Healthcare Systems & Technologies (HST) Sales: $784 million in Q4, decreased 1%; $3 billion for full year, declined 2%.
- Pharmaceutical Segment Sales: $643 million in Q4, increased 8%; $2.4 billion for full year, advanced 7%.
- Adjusted Operating Margin: 15.2% for Q4, decreased 190 basis points year-over-year.
- Fourth-Quarter Adjusted Gross Margin: 44.5%, declined slightly by 10 basis points year-over-year.
- Full-Year 2024 Adjusted Gross Margin: 43.5%.
- Full-Year 2025 Sales Growth Outlook: 5% to 6% on a reported basis.
- Full-Year 2025 Adjusted EPS Outlook: $2.45 to $2.55 per diluted share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Baxter International Inc (BAX, Financial) reported fourth-quarter 2024 global sales from continuing operations of $2.75 billion, which increased 1% on a reported basis and 2% on a constant currency basis, exceeding prior guidance.
- The company successfully launched the Novum IQ infusion pump platform in the United States, contributing to a 50% growth in their infusion business in 2024.
- Baxter International Inc (BAX) completed the divestiture of its non-core BioPharma Solutions business, positioning the company to focus on core operations and drive profitable growth.
- The company reported a full-year 2024 adjusted earnings per share from continuing operations of $1.89, an increase of 11% over the prior year.
- Baxter International Inc (BAX) anticipates full-year 2025 sales growth of 5% to 6% on a reported basis, with operational sales expected to grow 4% to 5%.
Negative Points
- Hurricane Helene negatively impacted Baxter International Inc (BAX)'s sales by approximately $110 million in the fourth quarter of 2024.
- The Healthcare Systems & Technologies segment experienced a 1% decline in sales for the quarter, with Front Line Care sales declining 8%.
- The company faces a negative impact from foreign exchange, which is expected to reduce 2025 sales growth by approximately 200 basis points.
- Baxter International Inc (BAX) is dealing with stranded costs following the divestiture of its Kidney Care business, which it aims to offset by 2027.
- The company is undergoing a CEO transition, which may introduce uncertainty in strategic direction and execution.
