NYSE$BAX

Baxter International Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Baxter's Q1 2023 performance reflected sustained demand for medically essential products amidst a stabilizing macroeconomic climate and healthcare marketplace.

Baxter's first-quarter 2023 results showed a worldwide sales decrease of 2% on a reported basis, totaling $3.65 billion, but an increase of 2% on a constant currency basis. U.S. GAAP earnings per share (EPS) totaled $0.09, while adjusted EPS totaled $0.59. The company is advancing its strategic transformation initiatives, including a new operating model and the proposed spinoff of its Kidney Care segment.

  • Worldwide sales totaled approximately $3.65 billion, a decrease of 2% on a reported basis and an increase of 2% on a constant currency basis.
  • U.S. sales totaled $1.73 billion, decreasing 1% on a reported basis.
  • Net income attributable to Baxter was $44 million, or $0.09 per diluted share, a decline of 36% on a U.S. GAAP basis.
  • Adjusted net income attributable to Baxter totaled $297 million, or $0.59 per diluted share, a 37% decrease.

Headline financials

Total Revenue

$3.65B

Previous: $3.71B-1.6%
EPS (adj)

$0.59

Previous: $0.93-36.6%
Adjusted Operating Income

$503M

Previous: $666M-24.5%
Adjusted Net Income Attributable to Baxter Stockholders

$297M

Previous: $471M-36.9%
Free Cash Flow

$44M

Previous: $71M-38.0%
Net Income

$44M

Previous: $71M-38.0%
Operating Income

$186M

Previous: $163M+14.1%
Gross Profit

$1.35B

Previous: $1.35B-0.1%
Cash & Equivalents

$1.67B

Previous: $2.29B-27.1%
Total Assets

$28.3B

Previous: $32.7B-13.5%
Stock-Based Comp

$25M

Previous: $32M-21.9%

Revenue & EPS history

Baxter · Revenue · Quarterly

$3.65B

Q1 2023-1.6%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Baxter · $597M total across 2 segments · Q3 2023

  • Pharmaceuticals
    $580M
  • Other
    $17M

Forward guidance

Baxter expects full-year 2023 sales growth of 1% to 2% on a reported basis and approximately 1% on a constant currency basis. The company anticipates U.S. GAAP earnings of $1.16 to $1.31 per diluted share and adjusted earnings of $2.85 to $3.00 per diluted share. For the second quarter of 2023, sales growth is expected to be approximately 1% to 2% on a reported basis and 2% to 3% on a constant currency basis, with U.S. GAAP earnings of $0.18 to $0.20 per diluted share and adjusted earnings of $0.59 to $0.61 per diluted share.

Tailwinds

  • Full-year 2023 sales growth of 1% to 2% on a reported basis is expected.
  • Constant currency sales growth for full-year 2023 is expected to be approximately 1%.
  • Full-year U.S. GAAP earnings are projected to be $1.16 to $1.31 per diluted share.
  • Adjusted earnings for full-year 2023 are expected to be $2.85 to $3.00 per diluted share.
  • Second-quarter sales growth of approximately 1% to 2% on a reported basis is anticipated.

Headwinds

  • Second-quarter U.S. GAAP earnings are expected to be $0.18 to $0.20 per diluted share.
  • Adjusted earnings for the second quarter are projected to be $0.59 to $0.61 per diluted share.
  • The company's outlook does not reflect the potential impact of future business or asset acquisitions or dispositions.
  • The company's outlook does not reflect the potential impact of goodwill or intangible asset impairments
  • The company's outlook does not reflect the potential impact of restructuring actions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.4%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-0.9%

Avg return

30 days after

47%

34 / 72 earnings

Positive

+18.2%

Q4 2019

Best reaction

-16.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.1%-0.9%+11.2%
Q4 2025-16.0%-6.9%-21.9%
Q3 2025-14.4%-20.0%-16.4%
Q1 2025-1.6%-4.0%-2.1%
Q4 2024+8.5%+16.6%+7.7%
Q3 2024-5.0%-9.5%-11.8%
Q2 2024+5.6%+7.2%+12.1%
Q1 2024-8.6%-10.5%-15.5%
Q4 2023+0.4%+0.6%+11.1%
Q3 2023+3.6%+4.3%+11.5%
Q2 2023-4.0%-8.1%-15.2%
Q1 2023+3.5%+2.0%-10.4%
Q4 2022-10.4%-12.6%-16.8%
Q3 2022-4.6%-6.7%-2.8%
Q2 2022-12.2%-11.9%-14.4%
Q1 2022-0.0%+1.4%+7.2%
Q4 2021-3.3%-0.8%-7.1%
Q3 2021-3.6%-2.0%-6.9%
Q2 2021-5.6%-6.9%-9.7%
Q1 2021-1.5%+0.5%-5.6%
Q4 2020+0.0%-0.4%+1.0%
Q3 2020-0.7%-1.1%-2.8%
Q2 2020-4.8%-10.6%-5.2%
Q1 2020-4.0%-3.0%-1.6%
Q4 2019+18.2%+5.8%+26.5%
Q3 2019+18.2%+5.8%+26.5%
Q2 2019+1.5%+2.7%+1.3%
Q1 2019-0.1%+0.0%-1.5%
Q4 2018+0.6%+0.5%+5.7%
Q3 2018-8.1%-9.0%-0.2%
Q2 2018-6.3%-5.3%-5.4%
Q1 2018+5.5%+5.5%+9.0%
Q4 2017-4.8%-7.4%-8.0%
Q3 2017+0.9%+0.3%-0.4%
Q2 2017-2.8%-2.6%-0.9%
Q1 2017+4.2%+4.5%+10.2%
Q4 2016+0.5%+0.9%+6.3%
Q3 2016-2.1%-2.6%-3.9%
Q2 2016+4.8%+4.2%+2.2%
Q1 2016+1.3%
Q4 2015+2.6%
Q3 2015+3.7%
Q2 2015+5.0%
Q1 2015+1.1%
Q4 2014+0.2%
Q3 2014-1.6%
Q2 2014-0.1%
Q1 2014-0.4%
Q4 2013-3.0%
Q3 2013-2.3%
Q2 2013+1.3%
Q1 2013-1.6%
Q4 2012+2.1%
Q3 2012+0.0%
Q2 2012+0.1%
Q1 2012-0.4%
Q4 2011+1.8%
Q3 2011+2.8%
Q2 2011-2.7%
Q1 2011+1.7%
Q4 2007-1.2%
Q4 2010-1.2%
Q3 2010+1.2%
Q2 2010+0.3%
Q1 2009+0.9%
Q1 2010-0.8%
Q4 2009-0.3%
Q3 2008-0.8%
Q3 2009-0.8%
Q2 2008+2.2%
Q2 2009+2.2%
Q4 2008+2.2%

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