Latest news with #BAX
Yahoo
15-05-2025
- Business
- Yahoo
BAX Q1 Earnings Call: Revenue Tops Expectations, Margins Face Tariff and Cost Pressures
Healthcare company Baxter International (NYSE:BAX) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 5.4% year on year to $2.63 billion. The company expects next quarter's revenue to be around $2.82 billion, close to analysts' estimates. Its non-GAAP profit of $0.55 per share was 14.8% above analysts' consensus estimates. Is now the time to buy BAX? Find out in our full research report (it's free). Revenue: $2.63 billion vs analyst estimates of $2.58 billion (5.4% year-on-year growth, 1.9% beat) Adjusted EPS: $0.55 vs analyst estimates of $0.48 (14.8% beat) Adjusted EBITDA: $639 million vs analyst estimates of $484.8 million (24.3% margin, 31.8% beat) Revenue Guidance for Q2 CY2025 is $2.82 billion at the midpoint, roughly in line with what analysts were expecting Management slightly raised its full-year Adjusted EPS guidance to $2.51 at the midpoint Operating Margin: 2.2%, down from 4.6% in the same quarter last year Free Cash Flow was -$315 million compared to -$13 million in the same quarter last year Constant Currency Revenue rose 7% year on year (2% in the same quarter last year) Market Capitalization: $15.55 billion Baxter International's first quarter results were primarily driven by robust sales growth across all its business segments, with notable outperformance in Medical Products & Therapies (MPT) and Healthcare Systems & Technologies (HST). Management attributed the top-line beat to increased demand for infusion systems, a strong recovery in IV solutions supply, and competitive wins in patient support systems. In addition, distributors began rebuilding inventory earlier than anticipated, and the company benefited from operational efficiencies, which helped offset ongoing cost pressures. Looking ahead, Baxter's guidance reflects both confidence in underlying business momentum and caution regarding external factors. Management highlighted persistent macroeconomic uncertainty, the impact of new and proposed global tariffs, and the ongoing transition following the sale of the Kidney Care business. CFO Joel Grade emphasized a continued focus on operational efficiency and targeted investments in innovation, while noting that new tariffs and foreign exchange headwinds are expected to weigh on margins for the remainder of the year. Baxter's leadership identified several key operational and market factors that shaped Q1 performance and set the context for the rest of the year. Strong segment growth, supply chain recovery, and competitive gains in core franchises were central themes. MPT Segment Outperformance: Medical Products & Therapies growth was supported by double-digit gains in U.S. infusion systems, led by the ongoing Novum IQ pump rollout. The business also benefited from improved supply and backorder clearance in nutrition products. IV Solutions Supply Recovery: The North Cove IV solutions facility returned to pre-disruption production levels, enabling removal of product allocations and prompting some hospitals and distributors to rebuild inventory ahead of schedule. Management expects continued conservation in hospital usage but anticipates normalization as allocations are lifted. HST Segment Momentum: Healthcare Systems & Technologies saw strong U.S. capital orders, particularly in Care and Connectivity Solutions. Management credited competitive wins in patient support and ICU product lines, as well as a healthy backlog supporting future growth. Tariff and Cost Mitigation Efforts: New global tariffs, particularly those affecting U.S. and China trade, emerged as a headwind. Management outlined mitigation strategies including supply chain optimization, selective pricing actions, and advocacy for product exemptions to offset estimated impacts. Ongoing Strategic Transformation: Baxter is transitioning following the sale of its Kidney Care business. Management highlighted ongoing cost containment efforts, reallocation of stranded costs, and investments in innovation, all intended to support long-term margin expansion and growth. Management's outlook for the coming quarters hinges on navigating macroeconomic headwinds, capitalizing on backlog strength, and executing operational improvements to drive sustainable growth and margin recovery. Tariff and FX Headwinds: The company expects new tariffs and adverse foreign exchange rates to pressure operating margins, with mitigation efforts only partially offsetting these impacts in the near term. Backlog and Capital Demand: A strong order book in Care and Connectivity Solutions and ongoing recovery in healthcare capital spending are expected to support revenue stability, though management is monitoring for demand shifts due to customer reimbursement challenges. Operational Efficiency and Innovation: Baxter is prioritizing supply chain optimization, targeted pricing, and accelerated investment in new product development to offset cost pressures and lay the groundwork for future margin expansion. Joanne Wuensch (Citi): Asked about specific mitigation strategies for tariffs and the sustainability of HST growth. Management detailed supply chain adjustments and targeted pricing, while maintaining a conservative outlook despite strong backlog. David Roman (Goldman Sachs): Queried the impact of IV solution allocation removal and long-term changes in hospital inventory practices. Management expects ongoing conservation but predicts gradual normalization as allocations end. Travis Steed (BofA Securities): Questioned margin pressures from cost reclassifications and the trajectory back to pre-pandemic margins. Management cited temporary impacts from MSA income and planning costs, with long-term margin expansion tied to innovation and product mix. Vijay Kumar (Evercore ISI): Sought clarification on the deceleration in Q2 growth and Novum IQ's market share gains. Management attributed Q2 guidance to ongoing IV solution conservation and built-in conservatism, while confirming Novum IQ has achieved low single-digit share gains. Pito Chickering (Deutsche Bank): Asked for a bridge between previous and updated EPS guidance given operational and tariff impacts, and probed drivers of U.S. CCS wins. Management pointed to strong operational execution offset by tariffs and FX, and highlighted commercial progress and digital enhancements in CCS. In the coming quarters, the StockStory team will track (1) progress on tariff mitigation and supply chain adjustments, (2) evidence of sustained order growth and backlog conversion in the HST segment, and (3) normalization in IV solutions demand as hospital inventory practices adjust. We will also monitor execution on new product launches and any updates on permanent CEO selection, as both could significantly affect Baxter's strategic direction. Baxter currently trades at a forward P/E ratio of 12×. In the wake of earnings, is it a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
14-05-2025
- Business
- Yahoo
1 Mid-Cap Stock to Target This Week and 2 to Avoid
Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo. These dynamics can rattle even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here is one mid-cap stock with huge upside potential and two that could be down big. Market Cap: $11.21 billion Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products. Why Do We Think CCK Will Underperform? Constant currency revenue growth has disappointed over the past two years and shows demand was soft Anticipated sales growth of 2% for the next year implies demand will be shaky Gross margin of 20.3% reflects its high production costs Crown Holdings is trading at $97.77 per share, or 14x forward P/E. If you're considering CCK for your portfolio, see our FREE research report to learn more. Market Cap: $15.99 billion With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE:BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide. Why Do We Steer Clear of BAX? Customers postponed purchases of its products and services this cycle as its revenue declined by 10.3% annually over the last two years Weak constant currency growth over the past two years indicates challenges in maintaining its market share Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable At $31.10 per share, Baxter trades at 12.4x forward P/E. Dive into our free research report to see why there are better opportunities than BAX. Market Cap: $22.13 billion Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line. Why Are We Bullish on PODD? Average constant currency growth of 26.6% over the past two years demonstrates its ability to grow internationally despite currency fluctuations Incremental sales significantly boosted profitability as its annual earnings per share growth of 114% over the last five years outstripped its revenue performance Free cash flow margin increased by 21.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders Insulet's stock price of $313.30 implies a valuation ratio of 71.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
NDTV
12-05-2025
- Health
- NDTV
Scientists Find Molecule That Blocks Brain Cell Death In Parkinson's, Alzheimer's
Sydney: A team of Australian scientists has identified a small molecule that blocks cell death, an advance that could lead to new treatments for neurodegenerative conditions like Parkinson's and Alzheimer's. The team from the Melbourne-based Walter and Eliza Hall Institute of Medical Research (WEHI) aimed to find new chemicals that block cell death, which could help treat degenerative diseases in the future. The findings offer hope for treatments that could slow or stop the progression of neurodegenerative diseases. After screening over 100,000 chemical compounds, the team found a small molecule that targets a killer protein called BAX. By interfering with a well-understood cell death protein, the molecule effectively stopped cells from dying. "We were thrilled to find a small molecule that targets a killer protein called BAX and stops it working," said Professor Guillaume Lessene from WEHI. "While not the case in most cells, in neurons turning off BAX alone may be sufficient to limit cell death," Lessene added. While drugs that trigger cell death are transforming the treatment of certain cancers, the development of cell death blockers -- that could be similarly game-changing for neurodegenerative conditions -- has proven challenging. The new molecule targets a killer protein called BAX, which kills cells by damaging mitochondria, the powerhouse of cells. "For the first time we could keep BAX away from mitochondria and keep cells alive using this molecule," said lead author and Dewson Lab researcher Kaiming Li. "This could pave the way for next-generation cell death inhibitors to combat degenerative conditions," Li said, in the paper published in the journal Science Advances. While drugs that trigger cell death are transforming the treatment of certain cancers, the development of cell death blockers - that could be similarly game-changing for neurodegenerative conditions -- has proven challenging. The study demonstrates the potential to identify drugs that block cell death and may open a new avenue to find much-needed disease-modifying drugs for Parkinson's and Alzheimer's, said the researchers.
Hans India
12-05-2025
- Health
- Hans India
Scientists find molecule that blocks brain cell death in Parkinson's, Alzheimer's
Sydney: A team of Australian scientists has identified a small molecule that blocks cell death, an advance that could lead to new treatments for neurodegenerative conditions like Parkinson's and Alzheimer's. The team from the Melbourne-based Walter and Eliza Hall Institute of Medical Research (WEHI) aimed to find new chemicals that block cell death, which could help treat degenerative diseases in the future. The findings offer hope for treatments that could slow or stop the progression of neurodegenerative diseases. After screening over 100,000 chemical compounds, the team found a small molecule that targets a killer protein called BAX. By interfering with a well-understood cell death protein, the molecule effectively stopped cells from dying. 'We were thrilled to find a small molecule that targets a killer protein called BAX and stops it working,' said Professor Guillaume Lessene from WEHI. 'While not the case in most cells, in neurons turning off BAX alone may be sufficient to limit cell death," Lessene added. While drugs that trigger cell death are transforming the treatment of certain cancers, the development of cell death blockers -- that could be similarly game-changing for neurodegenerative conditions -- has proven challenging. The new molecule targets a killer protein called BAX, which kills cells by damaging mitochondria, the powerhouse of cells. 'For the first time we could keep BAX away from mitochondria and keep cells alive using this molecule,' said lead author and Dewson Lab researcher Kaiming Li. 'This could pave the way for next-generation cell death inhibitors to combat degenerative conditions,' Li said, in the paper published in the journal Science Advances. While drugs that trigger cell death are transforming the treatment of certain cancers, the development of cell death blockers – that could be similarly game-changing for neurodegenerative conditions -- has proven challenging. The study demonstrates the potential to identify drugs that block cell death and may open a new avenue to find much-needed disease-modifying drugs for Parkinson's and Alzheimer's, said the researchers.
Yahoo
22-02-2025
- Business
- Yahoo
Baxter International Full Year 2024 Earnings: EPS Misses Expectations
Revenue: US$10.6b (down 28% from FY 2023). Net loss: US$337.0m (loss widened by 343% from FY 2023). US$0.66 loss per share (further deteriorated from US$0.15 loss in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. The primary driver behind last 12 months revenue was the Medical Products and Therapies segment contributing a total revenue of US$5.21b (49% of total revenue). Notably, cost of sales worth US$6.43b amounted to 60% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$2.86b (63% of total expenses). Explore how BAX's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Medical Equipment industry in the US. Performance of the American Medical Equipment industry. The company's shares are up 9.7% from a week ago. You should always think about risks. Case in point, we've spotted 2 warning signs for Baxter International you should be aware of, and 1 of them is significant. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
