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 -3.27% downward trend, declining for three consecutive days on June 30, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where BAX declined for three days, in of 296 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for BAX moved out of overbought territory on July 08, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
BAX broke above its upper Bollinger Band on June 26, 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.
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for BAX just turned positive on June 24, 2026. Looking at past instances where BAX's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BAX advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 175 cases where BAX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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 Price Growth Rating for this company is (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 Valuation Rating of (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 (1.879) is normal, around the industry mean (4.723). P/E Ratio (87.846) is within average values for comparable stocks, (190.563). BAX's Projected Growth (PEG Ratio) (36.677) is very high in comparison to the industry average of (3.498). Dividend Yield (0.009) settles around the average of (0.023) among similar stocks. P/S Ratio (0.998) is also within normal values, averaging (84.930).
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 96, 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 PharmaceuticalsOther
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