BAXTER INTERNATIONAL Reports Second Quarter Earnings Results for 2023 Fiscal Year
August 25, 2023
🌥️Earnings Overview
On June 30, 2023, BAXTER INTERNATIONAL ($NYSE:BAX) reported their fiscal year 2023 second quarter earnings results. Compared to the corresponding quarter in the previous year, total revenue decreased by 1.0% to USD 3707.0 million and net income dropped to USD -141.0 million from USD 252.0 million.
Share Price
The company’s stock opened at $47.2 and closed at $45.5, representing a 7.1% drop from the previous closing price of $49.0. This marked a significant decrease in the company’s stock price, with investors expressing concern about the company’s outlook in the coming quarters. This was due to higher costs associated with new product development and increased marketing and promotional spending. Despite the lower-than-expected earnings results, BAXTER INTERNATIONAL remains optimistic about its future prospects. The company has been investing heavily in new product development and marketing initiatives that are expected to help drive sales growth in the coming quarters.
In addition, the company continues to focus on expanding its customer base and expanding into new markets. With the right strategies in place, BAXTER INTERNATIONAL is confident that it can achieve long-term growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Baxter International. More…
| Total Revenues | Net Income | Net Margin |
| 15.18k | -2.85k | -6.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Baxter International. More…
| Operations | Investing | Financing |
| 1.56k | -783 | -913 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Baxter International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.89k | 22.25k | 11.01 |
Key Ratios Snapshot
Some of the financial key ratios for Baxter International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.0% | -7.6% | -14.9% |
| FCF Margin | ROE | ROA |
| 5.5% | -24.7% | -5.1% |
Analysis
As GoodWhale, my task is to analyze BAXTER INTERNATIONAL‘s fundamentals. Our Star Chart shows that BAXTER INTERNATIONAL has a high health score of 7/10 with regard to its cashflows and debt, indicating its ability to pay off debt and fund future operations. Moreover, BAXTER INTERNATIONAL is strong in dividend, medium in profitability, and weak in asset and growth. We classify BAXTER INTERNATIONAL as a ‘rhino’, meaning that it has achieved moderate revenue or earnings growth. Investors who are looking for predictable, moderately growing companies may be interested in BAXTER INTERNATIONAL. Unlike ‘unicorn’ or ‘tiger’ companies with higher growth rate, BAXTER INTERNATIONAL may be attractive for investors who seek more moderate yet steady returns. For example, long-term investors who are looking for reliable dividend income may find BAXTER INTERNATIONAL’s dividend strength appealing. 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
Investors should take note of the second quarter earnings results reported by BAXTER INTERNATIONAL on June 30 2023. Total revenue decreased by 1.0%, to USD 3707.0 million, while net income decreased to USD -141.0 million from USD 252.0 million the same quarter last year. This news prompted a downward movement in the company’s stock price the same day. Going forward, investors should monitor the company’s financial performance closely to determine whether this trend will continue or if the company is able to rebound.
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