Baxter International Inc. (NYSE:BAX) Quarterly Earnings Preview

• Baxter International Inc. (NYSE:BAX) is expected to report an EPS of $0.81 and revenue of approximately $2.67 billion for its upcoming quarterly earnings.
• The company has a history of surpassing earnings expectations, with an average surprise of 3.62% over the past four quarters.
• Baxter's financial metrics indicate a high valuation with a P/E ratio of 145.54 and a debt-to-equity ratio of 1.68, highlighting its reliance on debt financing.

Baxter International Inc. (NYSE:BAX) is a global healthcare company that provides a broad portfolio of essential medical products, including infusion therapies, pharmaceuticals, and patient support systems. The company is set to release its quarterly earnings on February 20, 2025. Analysts expect an earnings per share (EPS) of $0.81 and revenue of approximately $2.67 billion.

Baxter has a history of surpassing earnings expectations, with an average surprise of 3.62% over the past four quarters. Despite challenges like Hurricane Helene, the company anticipates growth in its core segments to support recovery. For the fourth quarter of 2024, the consensus revenue estimate is $2.67 billion. Analysts have not revised their EPS estimates in the past 30 days. Stability in earnings projections can influence investor reactions and stock price movements, as highlighted by empirical studies.

Baxter's financial metrics reveal a high valuation with a P/E ratio of 145.54, indicating that investors are paying a premium for its earnings. The price-to-sales ratio of 1.12 suggests that investors pay $1.12 for every dollar of sales. The enterprise value to sales ratio is 1.97, reflecting the company's total valuation relative to its sales.

The company's debt-to-equity ratio is 1.68, showing significant reliance on debt financing. Baxter's current ratio of 1.43 indicates its ability to cover short-term liabilities with short-term assets. These financial metrics provide insight into the company's valuation and financial health, which are crucial for investors assessing Baxter's performance.