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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BAX's RSI Oscillator recovers from oversold territory
The RSI Oscillator for BAX moved out of oversold territory on September 22, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 43 similar instances when the indicator left oversold territory. In 28 of the 43 cases the stock moved higher. This puts the odds of a move higher at 65%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 30, 2026. You may want to consider a long position or call options on BAX as a result. In 49 of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 57%.
The Moving Average Convergence Divergence (MACD) for BAX just turned positive on September 30, 2026. Looking at past instances where BAX's MACD turned positive, the stock continued to rise in 19 of 46 cases over the following month. The odds of a continued upward trend are 41%.
Following a +3.70% 3-day Advance, the price is estimated to grow further. Considering data from situations where BAX advanced for three days, in 166 of 291 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
BAX moved below its 50-day moving average on September 09, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BAX crossed bearishly below the 50-day moving average on September 15, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 85%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
BAX broke above its upper Bollinger Band on October 05, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BAX entered a downward trend on September 30, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 26 (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 Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. BAX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 94 (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 Valuation Rating of 98 (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (1.957) is normal, around the industry mean (5.011). P/E Ratio (87.846) is within average values for comparable stocks, (163.451). BAX's Projected Growth (PEG Ratio) (36.677) is very high in comparison to the industry average of (4.456). Dividend Yield (0.002) settles around the average of (0.005) among similar stocks. P/S Ratio (1.057) is also within normal values, averaging (56.074).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (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 97, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
Is there a Benefit to Self-Managing?
Can I Purchase Individual Health Insurance?
What is the definition of hedging in finance, and why is it important for beginners to understand?
Best Pet Stocks To Buy: Navigating the Flourishing Pet Care Industry
Earnings Reports and Projections for the Week July 15 - 19
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 PharmaceuticalsOther
Advertisement