Baxter Earnings Cheat Sheet: Revenue Growth Drives Margin, Profit Increases

S&P 500 (NYSE:SPY) component Baxter International Inc (NYSE:BAX) reported its results for the second quarter. Baxter International Inc is a company which develops and manufactures healthcare products that save and sustain the lives of people with chronic, acute illnesses.

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Baxter International Inc Earnings Cheat Sheet for the Second Quarter

Results: Net income for Baxter International Inc rose to $615 million ($1.07 per share) vs. $535 million (90 cents per share) in the same quarter a year earlier. This marks a rise of 15% from the year earlier quarter.

Revenue: Rose 9.6% to $3.5 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BAX beat the mean analyst estimate of $1.02 per share. It beat the average revenue estimate of $3.38 billion.

Quoting Management: “We remain encouraged with the continued improvement in our financial performance and progress with the initiatives we have implemented to enhance our commercial, operational, and scientific effectiveness,” said Robert L. Parkinson, Jr., chairman and chief executive officer. “These initiatives, combined with Baxter’s global presence, diversified portfolio, and focus on innovation, provide unique opportunities for future growth in an evolving and challenging macro-environment.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 4 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 12.2% to $3.28 billion in the first quarter. The figure rose 0.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 2.5% in the third quarter of the last fiscal year from the year-ago quarter.

Gross margins grew 0.1 percentage point to 51.4%. The growth seemed to be driven by increased revenue, as the figure rose 9.6% from the year earlier quarter while costs rose 9.3%.

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).

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(Source: Xignite Financials)

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