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Baxter International Inc BAX

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Baxter Beats in Q2 but Shows Caution on 2021 Guidance; Shares Fairly Valued

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA |

Narrow-moat Baxter mildly beat adjusted EPS expectations in the second quarter and raised the bottom end of its adjusted EPS guidance range for 2021. However, this mild increase in near-term profit trends does not substantially affect our $80 fair value estimate. Shares remain about fairly valued, in our opinion. 

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Company Profile

Business Description

Baxter manufactures medical products across seven major reported business segments. The renal segment (32% of 2020 sales) includes peritoneal dialysis and hemodialysis products for chronically ill patients while the acute therapies segment (6%) offers kidney or other organ support tools in intensive care situations. The medication delivery segment (23% of sales) sells IV pumps, administrative sets, and solutions while the nutrition segment (8% of sales) offers parenteral nutrition therapies. The pharmaceuticals segment (18% of sales) offers injectable drugs, anesthetic gases, and compounding services. The advanced surgery segment (8% of sales) provides hemostatic products and biosurgical sealants. Contract manufacturing rounds out the remaining sales.

Contact
One Baxter Parkway
Deerfield, IL, 60015
T +1 224 948-2000
Sector Healthcare
Industry Medical Instruments & Supplies
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Classic Growth
Employees 50,000

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