GET DAILY SIGNALSBaxter'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.
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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 in downward trend: price dove below 50-day moving average on October 29, 2026
BAX moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend. In 24 of 32 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 75%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for BAX moved out of overbought territory on October 16, 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 32 similar instances where the indicator moved out of overbought territory. In 21 of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at 66%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 33 of 55 cases where BAX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 60%.
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BAX as a result. In 62 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 72%.
The Moving Average Convergence Divergence Histogram (MACD) for BAX turned negative on October 29, 2026. 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 46 similar instances when the indicator turned negative. In 34 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 74%.
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%.
Bullish Trend Analysis
The 10-day moving average for BAX crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 69%.
Following a +4.65% 3-day Advance, the price is estimated to grow further. Considering data from situations where BAX advanced for three days, in 166 of 288 cases, the price rose further within the following month. The odds of a continued upward trend are 58%.
BAX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 143 of 210 cases where BAX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 68%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 41 (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 PE Growth Rating for this company is 63 (best 1 - 100 worst), pointing to average 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 Valuation Rating of 94 (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 (1.958) is normal, around the industry mean (5.000). P/E Ratio (-11.353) is within average values for comparable stocks, (37.535). BAX's Projected Growth (PEG Ratio) (36.677) is very high in comparison to the industry average of (4.143). 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 (56.876).
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 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 94, 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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