BAXTER INTERNATIONAL Reports Fourth Quarter Results for FY 2022 with 23.9% Decrease in Total Revenue

Earnings Overview

BAXTER INTERNATIONAL ($NYSE:BAX) reported total revenue of USD 181.0 million for the fourth quarter of fiscal year 2022, a decrease of 23.9% year-over-year. Net income for the same period was USD 3887.0 million, a 10.6% increase compared to the same quarter of the prior year. The results were released on December 31, 2022.

Transcripts Simplified

Fourth quarter 2022 global sales of $3.9 billion increased 11% on a reported basis, 17% on a constant currency basis, and 2% operationally. Adjusted earnings decreased 15% to $0.88 per share outside the guidance range of $0.92 to $0.99 per share due to unfavorable product mix and foreign exchange losses on balance sheet positions. Sales in the Americas were flat on a constant currency basis, while Europe, Middle East and Africa grew 5% and APAC increased 2% on a constant currency basis. Global sales for Renal were $981 million, increasing 3% on a constant currency basis.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Baxter International. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Baxter International. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Baxter International. More…

Key Ratios Snapshot

Some of the financial key ratios for Baxter International are shown below. More…

Market Price

On Thursday, BAXTER INTERNATIONAL reported their fourth quarter results for FY 2022, with a staggering 23.9% decrease in total revenue from the same period last year. The company’s stock opened at $41.4 and closed at $40.1, plunging by 12.1% from its previous closing price of 45.7. The announcement of the financial results came after Baxter’s previous quarter earnings report which showed a 5% increase in total revenue. The company’s global medical products and pharmaceuticals businesses are expected to take a hit as a result of this decrease.

In addition, their global renal and nutrition businesses are also expected to experience a significant decline in revenue as they continue to battle against the global economic downturn. Baxter International’s management team is currently working with the board of directors to develop strategies in order to accelerate growth and profitability in the coming quarters. They are also exploring potential acquisitions and joint ventures as potential means of achieving this goal. Despite the disappointing fourth quarter results, BAXTER INTERNATIONAL’s share price has been gradually rising since its plunge on Thursday and overall, the company is optimistic of its prospects in the months ahead. Live Quote…

Analysis

At GoodWhale, we recently took a look at the financials of BAXTER INTERNATIONAL and found that the company is a high risk investment. Our Risk Rating indicates that there are financial and business-related risks associated with investing in this company. We detected 3 risk warnings in BAXTER INTERNATIONAL’s balance sheet, cashflow statement, and non-financial indicators. If you’d like to know more about these risks in greater detail, you can become a registered user and check them out for yourself. We want to make sure that our users are making educated and informed decisions about their investments. More…

Peers

Baxter International Inc is a large medical device company. Its main competitors are Utah Medical Products Inc, Clarity Medical Group Holding Ltd, and Merit Medical Systems Inc.

– Utah Medical Products Inc ($NASDAQ:UTMD)

The company’s market cap is $313.74 million and its ROE is 11.43%. Utah Medical Products, Inc. engages in the design, manufacture, and marketing of medical devices. It operates through the following segments: Pregnancy & Newborn, Patient Care, and Animal Health. The Pregnancy & Newborn segment offers a line of products used by obstetricians, gynecologists, and neonatal caregivers for the health and well-being of pregnant women and their babies. The Patient Care segment provides a line of products used by hospitals, clinics, and home healthcare providers for the treatment of respiratory and other conditions. The Animal Health segment offers a line of products used by veterinarians for the health and well-being of animals.

– Clarity Medical Group Holding Ltd ($SEHK:01406)

According to Clarity Medical Group Holding Ltd’s market cap as of 2022, the company is worth 599.47 million. Clarity Medical Group Holding Ltd is a Medical Group that provides healthcare services. The company was founded in 2014 and is headquartered in Hong Kong.

– Merit Medical Systems Inc ($NASDAQ:MMSI)

Medstronic is a medical device company that manufactures and sells a variety of medical devices and equipment. The company has a market cap of 3.29B as of 2022 and a ROE of 5.86%. Medtronic’s products are used in a variety of medical procedures, including cardiac surgery, vascular surgery, and neurology.

Summary

Baxter International reported its Q4 results for fiscal year 2022, with total revenue of USD 181.0 million, a decrease of 23.9% compared to the same period the previous year.

However, net income saw a 10.6% increase over the same period in the prior year. Despite this increase, the stock price moved down the same day. Investors interested in Baxter International should take note of its current performance and consider the potential risk associated with investing in this company.

Additionally, analysts should closely monitor both its revenue and income to determine the company’s future prospects.