Baxter International: Steady in Core vs. Lingering Challenges in Others: What’s the Impact on Growth, Outlook, and Key Catalysts?

$50.00 — or $120.00 / year

Baxter International’s Q3 2024 results reflect steady execution in core segments alongside ongoing challenges that temper near-term growth expectations. Total sales grew 4% YoY on a constant currency basis, driven by a 7% rise in Medical Products & Therapies (MPT), bolstered by Novum IQ’s 50% YTD hardware growth. Adjusted EPS of $0.80 beat expectations by $0.02, highlighting effective cost management and supply chain efficiencies, while GAAP EPS of $0.27 missed by $0.14 due to higher-than-expected charges. Revenue of $2.70B missed by $1.15B, with Hurricane Helene contributing to a $200M sales shortfall and revised full-year EPS guidance of $2.90-$2.94. Gross margins improved 80 bps to 42.5%, but operating margins remain constrained by stranded costs from the pending Kidney Care divestiture, with full recovery expected by 2027. Challenges persist in Healthcare Systems & Technologies (HST), where international softness and U.S. market destocking weighed on results. Strategic tailwinds, such as pricing strength, Advanced Surgery growth, and a robust Pharma pipeline, provide longer-term potential, but near-term pressures in HST and lingering capacity constraints in MPT remain key hurdles. Can Baxter effectively navigate divestiture challenges and operational hurdles to unlock its core growth potential while stabilizing weaker segments?

Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures

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