Baxter's (BAX, $77.90) Q3 revenue misses expectations, according to preliminary report
Baxter International Inc. reported preliminary third-quarter 2019 revenues of $2.85 billion, which were lower than the Zacks Consensus Estimate of $2.86 billion. However, the figure was +3% higher compared to the year-ago quarter, on a reported basis. (+5% on both constant currency and operational basis).
Revenues in Americas were up +2.5% on a year-over-year basis, according to the preliminary results.
In EMEA, revenues increased + 3.3% from the year-ago quarter.
APAC revenues rose +4.3% from the prior-year quarter.
Baxter’s Renal Care segment generated revenues of $918 million in the quarter under review, up +0.9% year-over-year. Medication Delivery unit’s revenues increased +7.5% to $701 million. Pharmaceuticals revenues came in at $527 million, up +1.5% from the year-ago quarter. Clinical Nutrition revenues at the segment rose +0.5% to $219 million. Revenues from Advanced Surgery segment were $216 million, up +8%. Acute Therapies segment revenues of $130 million, were up +6.6% from the prior-year quarter.
Other revenues in the segment totaled $140 million, down -4.1% on a year-over-year basis.
Baxter’s preliminary adjusted gross margin contracted - 60 bps to 45.7% in the third quarter. Preliminary operating margin expanded +370 bps to 17.6% in the quarter.
According to the preliminary report, Baxter expects fourth quarter 2019 revenues to grow in the range of +3-4% on a reported basis, and approximately +5% on both constant currency and operational basis.
The company predicts that operating margin would range between 15.2% and 15.9% on a reported basis, and 18.5-19% on an adjusted basis.
BAX in upward trend: price may ascend as a result of having broken its lower Bollinger Band on December 16, 2024
BAX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 45 cases where BAX's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 10 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 12 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BAX advanced for three days, in of 289 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 05, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BAX as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BAX turned negative on December 10, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BAX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for BAX entered a downward trend on December 18, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.640) is normal, around the industry mean (23.300). P/E Ratio (85.609) is within average values for comparable stocks, (83.485). Projected Growth (PEG Ratio) (2.241) is also within normal values, averaging (5.667). Dividend Yield (0.027) settles around the average of (0.018) among similar stocks. P/S Ratio (1.488) is also within normal values, averaging (43.338).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BAX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BAX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
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General Information
a provider of a portfolio of essential renal and hospital products, including acute and chronic dialysis, sterile IV solutions, infusion systems and devices
Industry MedicalSpecialties