Can Core Renal Care Unit Drive Baxter's (BAX) Q1 Earnings?
Zacks Investment Research | Apr 22, 2019 10:41PM ET
Baxter International Inc. (NYSE:BAX) is scheduled to report first-quarter 2019 earnings on Jan 31, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 6.9%. Further, it has an average four-quarter positive surprise of 9.1%.
Let’s see how things are shaping up prior to this announcement.
Which Way Are Q1 Estimates Treading?
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 68 cents, suggesting a decline of 2.9% from the year-ago reported figure.
The same for revenues stands at $2.62 billion, indicating a fall of 2.3% from the year-ago quarter.
Renal Care in Focus
Baxter’s Renal Care segment, which offers improved dialysis solutions for patients, is expected to drive first-quarter results.
The company expects to witness growth in this segment in the to-be-reported quarter, backed by consistent rise in global demand for its peritoneal dialysis (PD) products. Further, the company anticipates experiencing growth for PD patients in the United States on the back of rise in patient volumes.
This apart, the company’s successful rollout of Kaguya in Japan is projected to contribute to the unit’s performance on patient growth.
In January, Baxter announced the Sharesource remote patient management that will be available in 40 countries, which is likely to evolve peritoneal dialysis practice management. Enhancements like this might contribute to the segment’s performance in the soon-to-be-reported quarter.
Global demand for continued renal replacement therapies along with continued momentum in PD is expected to drive growth in this segment in the first quarter. Baxter continues to project growth of around 2% to 3% at constant currency in 2019.
Factors to Influence Q1
The company is likely to deliver better-than-expected results in the to-be-reported quarter driven by anticipated solid show across Renal Care, Advanced Surgery and Acute Therapies businesses. Additionally, increased demand for Baxter’s contract manufacturing services might also contribute to the overall performance in the first quarter.
Baxter International Inc. Price and EPS Surprise
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