3 Healthcare Stocks in the Spotlight After Earnings

Baxter International Inc (NYSE:BAX) reported its results for the third quarter. Net income for the medical instruments and supplies company rose to $576 million ($1.01 per share) vs. $525 million (89 cents per share) in the same quarter a year earlier. This marks a rise of 9.7% from the year earlier quarter. Revenue rose 7.9% to $3.48 billion from the year earlier quarter. BAX reported adjusted net income of $1.09 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $1.08 per share. Analysts were expecting revenue of $3.41 billion.

“The evolving global macro-environment will exert ongoing pressures on our business, creating challenges that we will manage through disciplined execution of our strategies,” said Robert L. Parkinson, Jr., chairman and chief executive officer. “We continue to benefit from the diversified and medically-necessary nature of our portfolio, broad geographic reach and strong financial position, and remain committed to innovation through clinical differentiation, enhanced operational and cost effectiveness, improved earnings growth, and delivering sustained value for our shareholders.”

Competitors to Watch: Covidien plc (NYSE:COV), C.R. Bard, Inc. (NYSE:BCR), ICU Medical, Incorporated (NASDAQ:ICUI), Teleflex Incorporated (NYSE:TFX), Hospira, Inc. (NYSE:HSP), CryoLife, Inc. (NYSE:CRY), Becton, Dickinson and Co. (NYSE:BDX), CareFusion Corporation (NYSE:CFN), Haemonetics Corporation (NYSE:HAE), and NxStage Medical, Inc. (NASDAQ:NXTM).

Boston Scientific Corporation (NYSE:BSX) posted lower net income in the third quarter compared with a year-earlier period. Net income for the medical instruments and supplies company fell to $142 million (9 cents per share) vs. $190 million (12 cents per share) a year earlier. This is a decline of 25.3% from the year earlier quarter. Revenue fell 2.2% to $1.87 billion from the year earlier quarter. BSX reported adjusted net income of 15 cents per share. By that measure, the company beat the mean estimate of 8 cents per share. Analysts were expecting revenue of $1.91 billion.

“Boston Scientific’s earnings performance remains strong, despite very challenging global economic and end-market conditions that adversely impacted revenue,” stated Hank Kucheman, Chief Executive Officer of Boston Scientific Corporation. “The execution of the Company’s POWER strategy is the right top priority for the entire leadership team.”

Competitors to Watch: Medtronic, Inc. (NYSE:MDT), St. Jude Medical, Inc. (NYSE:STJ), Merit Medical Systems, Inc. (NASDAQ:MMSI), C.R. Bard, Inc. (NYSE:BCR), Abbott Laboratories (NYSE:ABT), Johnson & Johnson (NYSE:JNJ), Stryker Corporation (NYSE:SYK), Teleflex Incorporated (NYSE:TFX), AngioDynamics, Inc. (NASDAQ:ANGO), and The Spectranetics Corp. (NASDAQ:SPNC).

Eli Lilly and Company (NYSE:LLY) in the third quarter as profit dropped from a year earlier. Net income for the drug manufacturer fell to $1.24 billion ($1.11 per share) vs. $1.3 billion ($1.18 per share) a year earlier. This is a decline of 5.1% from the year earlier quarter. Revenue rose 8.7% to $6.15 billion from the year earlier quarter. LLY reported adjusted net income of $1.13 per share. By that measure, the company fell in line with the mean estimate of $1.13 per share. Analysts were expecting revenue of $6.03 billion.

 “In the third quarter Lilly continued to drive revenue growth for many key brands, including Cymbalta, Humalog, Forteo and Strattera, with strong growth also seen in animal health, Japan and China. This growth offset the continued erosion of Gemzar sales due to generic competition,” said John C. Lechleiter, Ph.D., Lilly’s chairman, president and chief executive officer. “As we face the loss of patent exclusivity for Zyprexa in most major markets, we are well-prepared as a company to meet the challenges before us. We remain committed to our innovation-based strategy and are focused on delivering the next wave of new medicines to patients in the coming years.”

Competitors to Watch: Pfizer Inc. (NYSE:PFE), Bristol Myers Squibb Co. (NYSE:BMY), Merck & Co., Inc. (NYSE:MRK), Johnson & Johnson (NYSE:JNJ), Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN), GlaxoSmithKline plc (NYSE:GSK), Alkermes, Inc. (NASDAQ:ALKS), Roche Holding Ltd. (RHHBY), Novartis AG (NYSE:NVS), and Abbott Laboratories (NYSE:ABT).

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