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Analysts’ March 2018 Ratings for Baxter International and Peers

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Financial performance in 4Q17

In 4Q17, Baxter International (BAX) reported revenues of ~$2.8 billion. These revenues represent year-over-year (or YoY) growth of 5.0% on a reported basis and 3.0% on a constant currency basis. The company’s operational revenues rose ~2.0% YoY in 4Q17.

These revenues excluded the impact of the increasing generic competition for cyclophosphamide in the US, foreign currency fluctuations, strategic exits by the company from several ventures, and the acquisition of Claris Injectables.

 

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Baxter International’s (BAX) top-line performance in 4Q17 was mainly driven by increased demand for the company’s Fluid Systems’ products. These products include intravenous access sets and large-volume IV solutions. These products also include chronic renal therapies such as peritoneal dialysis and center hemodialysis therapies in the US.

The company also reported high-single-digit growth in global sales of its acute renal therapies in 4Q17, owing to robust demand in the US and international markets. The company’s parenteral nutrition therapies witnessed robust uptake in international markets in 4Q17.

Baxter International also witnessed rising demand for its cytotoxic contract manufacturing services. However, the impact of Hurricane Maria on the company’s facilities in Puerto Rico had a negative impact on the company’s 4Q17 revenues of ~$70.0 million.

Analysts’ recommendations for Baxter International

Of the 17 analysts covering Baxter International (BAX) in March 2018, three recommend a “strong buy,” seven recommend a “buy,” six recommend a “hold,” and one analyst rates the company as a “sell.” None of the analysts recommend the company as a “strong sell.”

Analysts’ recommendations for BAX’s peers

Of the 21 analysts covering Abbott Laboratories (ABT) stock in March 2018, 80.9% recommend a “buy.” About 60.0% of the 20 analysts covering Becton Dickinson (BDX) stock recommend a “buy,” and 80.0% of the 25 analysts tracking Boston Scientific (BSX) recommend a “buy.”

In the next article, we’ll discuss the revenue growth prospects of Baxter International.

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