S&P 500 (NYSE:SPY) component Baxter International (NYSE:BAX) will unveil its latest earnings on Thursday, October 18, 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 $1.14 per share, a rise of 4.6% 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 $1.16. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.14 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 is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of $1.12 per share against the mean estimate of $1.11. In the prior quarter, the company reported profit of $1.01.
Are you well-positioned with a winning post-election portfolio?: Check out our newest CHEAT SHEET stock picks now>>
Stock Price Performance: Between July 19, 2012 and October 12, 2012, the stock price rose $4.25 (7.5%), from $56.44 to $60.69. 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 November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 12.6% (-$6.85) over that span.
A Look Back: In the second quarter, profit rose 7.5% to $661 million ($1.19 a share) from $615 million ($1.07 a share) the year earlier, exceeding analyst expectations. Revenue rose 1% to $3.57 billion from $3.54 billion.
Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 9.5% in the fourth quarter of the last fiscal year and 3.2% in the first quarter before increasing again in the second quarter.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.9% in the third quarter of the last fiscal year, 2.7% in the fourth quarter of the last fiscal year and 3.2% in the first quarter before increasing again in the second quarter.
Wall St. Revenue Expectations: Analysts are projecting a rise of 1.1% in revenue from the year-earlier quarter to $3.52 billion.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: