Baxter International (NYSE:BAX) Shares Gap Down on Disappointing Earnings

Baxter International Inc. (NYSE:BAX)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $22.27, but opened at $19.52. Baxter International shares last traded at $19.0260, with a volume of 7,682,401 shares traded.

The medical instruments supplier reported $0.44 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.09). Baxter International had a negative net margin of 3.09% and a positive return on equity of 17.38%. The company had revenue of $2.97 billion for the quarter, compared to analyst estimates of $2.82 billion. During the same period in the prior year, the company posted $0.58 EPS. The business’s revenue was up 8.0% on a year-over-year basis. Baxter International has set its FY 2026 guidance at 1.850-2.050 EPS.

Analyst Ratings Changes

Several brokerages have recently issued reports on BAX. Jefferies Financial Group lowered their price target on Baxter International from $25.00 to $21.00 and set a “hold” rating on the stock in a research report on Thursday, October 30th. UBS Group dropped their price target on Baxter International from $24.00 to $21.00 and set a “neutral” rating on the stock in a research report on Friday, October 31st. Wall Street Zen downgraded shares of Baxter International from a “buy” rating to a “hold” rating in a research note on Saturday, February 7th. The Goldman Sachs Group boosted their price objective on shares of Baxter International from $22.00 to $23.00 and gave the stock a “neutral” rating in a report on Friday, January 9th. Finally, Evercore decreased their target price on Baxter International from $24.00 to $23.00 in a research report on Monday, January 5th. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, Baxter International currently has an average rating of “Reduce” and a consensus target price of $21.40.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Dodge & Cox raised its position in shares of Baxter International by 10.1% during the third quarter. Dodge & Cox now owns 57,396,370 shares of the medical instruments supplier’s stock worth $1,306,915,000 after acquiring an additional 5,274,750 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Baxter International by 7.8% during the 4th quarter. Geode Capital Management LLC now owns 13,510,205 shares of the medical instruments supplier’s stock worth $257,174,000 after buying an additional 972,891 shares during the period. Greenhaven Associates Inc. lifted its holdings in Baxter International by 70.0% in the fourth quarter. Greenhaven Associates Inc. now owns 10,693,223 shares of the medical instruments supplier’s stock valued at $204,347,000 after buying an additional 4,404,874 shares during the period. Ameriprise Financial Inc. grew its holdings in Baxter International by 1.3% during the 2nd quarter. Ameriprise Financial Inc. now owns 7,638,629 shares of the medical instruments supplier’s stock worth $231,304,000 after acquiring an additional 97,687 shares during the period. Finally, Thompson Siegel & Walmsley LLC lifted its stake in shares of Baxter International by 12.0% in the 4th quarter. Thompson Siegel & Walmsley LLC now owns 3,328,202 shares of the medical instruments supplier’s stock valued at $63,602,000 after purchasing an additional 356,612 shares during the period. Institutional investors and hedge funds own 90.19% of the company’s stock.

Baxter International Price Performance

The company has a 50-day moving average price of $19.76 and a 200-day moving average price of $21.34. The firm has a market capitalization of $10.11 billion, a P/E ratio of -28.83, a price-to-earnings-growth ratio of 1.27 and a beta of 0.59. The company has a debt-to-equity ratio of 1.21, a quick ratio of 1.18 and a current ratio of 1.84.

About Baxter International

Baxter International Inc is a global healthcare company that develops, manufactures and markets a broad portfolio of medical products, pharmaceutical therapies and biotechnology-based solutions. The company’s primary business activities are organized around renal care, medication delivery, acute therapies, pharmacy automation, surgical care and biotechnology. Baxter’s offerings are designed to support patient care in hospitals, dialysis centers, nursing homes and other healthcare facilities worldwide.

In the renal care segment, Baxter provides hemodialysis and peritoneal dialysis systems, water treatment equipment and related disposables, including dialyzers, bloodlines and catheters.