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Analyzing Baxter International’s Top Line Trends

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BAX overview

Baxter International’s (BAX) global business units include renal care, medication delivery, pharmaceuticals, nutrition, advanced surgery, acute therapies, and other, which primarily includes sales from Baxter’s pharmaceutical partnering business.

In this series, we’ll explore Baxter’s financials, the performance of its global business units, its geographic performance, analysts’ views on its stock, and its valuation metrics.

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Top line

Baxter International generated revenue of $2.84 billion in the second quarter compared to $2.6 billion in the comparable period in 2017. In 2018 and 2019, the company is expected to generate revenues of $11.2 billion and $11.7 billion, respectively, compared to revenue of $10.56 billion in 2017.

Baxter International incurred a cost of sales of $1.6 billion in the second quarter compared to $1.47 billion in the second quarter of 2017.

The company’s gross profit increased from $1.13 billion in the second quarter of 2017 to $1.24 billion in the second quarter of 2018. Its gross margin expanded from 45.18% in the second quarter of 2017 to 45.50% in the second quarter of 2018.

Geographic performance

Baxter International’s geographic segments include the Americas, which consists of North and South America, the EMEA (Europe, the Middle East, and Africa), and the APAC (Asia-Pacific). Sales in the Americas segment increased from $1.43 billion in the second quarter of 2017 to $1.52 billion in the second quarter of 2018.

Sales from the EMEA segment increased from $666 million in the second quarter of 2017 to $758 million in the second quarter of 2018, and sales from the APAC segment increased from $506 million in the second quarter of 2017 to $559 million in the second quarter of 2018.

We’ll take a look at the performances of Baxter International’s business units in the next article.

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