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

Baxter International Inc. (NYSE:BAX) shares 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 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.09). Baxter International had a positive return on equity of 17.38% and a negative net margin of 3.09%.The firm had revenue of $2.97 billion for the quarter, compared to the consensus estimate of $2.82 billion. During the same period in the previous year, the business earned $0.58 EPS. The firm’s revenue was up 8.0% compared to the same quarter last year. Baxter International has set its FY 2026 guidance at 1.850-2.050 EPS.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. JPMorgan Chase & Co. dropped their price objective on shares of Baxter International from $25.00 to $19.00 in a report on Friday, October 31st. Zacks Research lowered Baxter International from a “hold” rating to a “strong sell” rating in a report on Tuesday, January 20th. TD Cowen reaffirmed a “hold” rating on shares of Baxter International in a research report on Thursday, October 30th. Barclays decreased their price objective on Baxter International from $36.00 to $30.00 and set an “overweight” rating for the company in a report on Friday, January 9th. Finally, Wall Street Zen downgraded Baxter International from a “buy” rating to a “hold” rating in a research report on Saturday, February 7th. Two investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $21.40.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vestor Capital LLC increased its holdings in shares of Baxter International by 1,340.3% during the fourth quarter. Vestor Capital LLC now owns 40,645 shares of the medical instruments supplier’s stock valued at $777,000 after acquiring an additional 37,823 shares in the last quarter. Alteri Wealth LLC increased its stake in Baxter International by 12.4% during the 4th quarter. Alteri Wealth LLC now owns 10,487 shares of the medical instruments supplier’s stock valued at $200,000 after purchasing an additional 1,158 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in shares of Baxter International in the fourth quarter worth $46,000. Bruce G. Allen Investments LLC lifted its stake in shares of Baxter International by 22.8% during the fourth quarter. Bruce G. Allen Investments LLC now owns 4,452 shares of the medical instruments supplier’s stock worth $85,000 after buying an additional 827 shares during the period. Finally, New Mexico Educational Retirement Board grew its holdings in shares of Baxter International by 4.7% during the fourth quarter. New Mexico Educational Retirement Board now owns 24,261 shares of the medical instruments supplier’s stock valued at $464,000 after buying an additional 1,100 shares during the last quarter. 90.19% of the stock is currently owned by hedge funds and other institutional investors.

Baxter International Stock Down 11.7%

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

Baxter International Company Profile

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.