S&P 500 (NYSE:SPY) component Baxter International (NYSE:BAX) will unveil its latest earnings on Thursday, July 19, 2012. Baxter International is a company that develops and manufactures healthcare products that save and sustain the lives of people with chronic, acute illnesses.
Baxter International Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.11 per share, a rise of 3.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.12. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.11 during the last month. For the year, analysts are projecting profit of $4.53 per share, a rise of 5.1% from last year.
Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of $1.01 per share versus a mean estimate of 99 cents. Two quarters ago, it reported profit of $1.17 per share.
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Stock Price Performance: From June 14, 2012 to July 13, 2012, the stock price rose $5.50 (11.2%), from $49.03 to $54.53. The stock price saw one of its best stretches over the last year between January 18, 2012 and January 27, 2012, when shares rose for eight straight days, increasing 8% (+$4.12) over that span. It saw one of its worst periods between July 21, 2011 and August 4, 2011 when shares fell for 11 straight days, dropping 14.3% (-$8.95) over that span.
A Look Back: In the first quarter, profit rose 3.2% to $588 million ($1.04 a share) from $570 million (98 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.2% to $3.39 billion from $3.28 billion.
Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.
This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 9.7% in the third quarter of the last fiscal year and 9.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 10.7% in the second quarter of the last fiscal year, 7.9% in the third quarter of the last fiscal year and 2.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Wall St. Revenue Expectations: Analysts predict a decline of 0.3% in revenue from the year-earlier quarter to $3.53 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.67 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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