What To Be Aware Of Before Baxter International Announces Its Earnings
Baxter International Inc.: Company Overview and Earnings Outlook
Baxter International Inc. (BAX), valued at $10.3 billion, delivers a wide array of medical devices, pharmaceuticals, and healthcare solutions for use in hospitals, clinics, and home care. The company operates globally through three main divisions: Medical Products and Therapies, Healthcare Systems and Technologies, and Pharmaceuticals, reaching patients and healthcare professionals worldwide through its expansive distribution network.
Headquartered in Deerfield, Illinois, Baxter is preparing to announce its fourth-quarter fiscal 2025 financial results. Analysts anticipate the company will report an adjusted earnings per share (EPS) of $0.53, representing an 8.6% decrease from the $0.58 reported in the same period last year. Over the past four quarters, Baxter has exceeded earnings expectations three times, while falling short once.
Looking ahead to fiscal 2025, analysts expect Baxter to achieve an adjusted EPS of $2.36, marking a 24.9% increase from the $1.89 reported in fiscal 2024.
Image source: www.barchart.com
Over the past year, Baxter’s share price has dropped by 35%, significantly lagging behind the S&P 500 Index’s 16.9% gain and the State Street Health Care Select Sector SPDR ETF’s (XLV) 10.4% rise during the same timeframe.
Image source: www.barchart.com
Despite delivering a stronger-than-expected adjusted EPS of $0.69 for Q3 2025, Baxter’s stock fell 14.5% on October 30 after reporting revenue of $2.84 billion, which missed analyst estimates. The company also revised its full-year adjusted EPS guidance down to a range of $2.35 to $2.40 and lowered its sales growth outlook to 4%–5%, citing disruptions at its North Cove facility caused by hurricanes. Ongoing challenges in its infusion pump business, including a shipment pause for the Novum IQ pump following two fatalities, have heightened investor concerns.
Analyst sentiment toward BAX remains cautious, with a consensus "Hold" rating. Of the 16 analysts covering the stock, two recommend a "Strong Buy," 13 suggest "Hold," and one rates it as a "Moderate Sell." This outlook is slightly less optimistic than three months ago, when three analysts rated it a "Strong Buy." The average price target stands at $21.71, implying a potential upside of nearly 8% from current levels.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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