NYSE$BAX

Baxter International Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported a decrease in second-quarter revenue and earnings per share due to the impact of COVID-19, while acute therapies delivered strong growth.

Baxter's second-quarter revenue totaled $2.7 billion, a decrease of 4% on a reported basis. U.S. GAAP EPS was $0.48, a decline of 20%; adjusted EPS was $0.64, a decline of 24%. The company expects full-year 2020 reported sales growth between -1% to +1% and U.S. GAAP EPS of $2.40 to $2.50.

  • Second-quarter revenue decreased 4% on a reported basis, 1% on a constant currency basis, and 2% on an operational basis.
  • Second-quarter U.S. GAAP earnings per share (EPS) declined 20%; adjusted EPS declined 24%.
  • Acute Therapies delivered growth on both a reported and constant currency basis of over 40% due to increased product demand related to COVID-19.
  • Baxter expects full-year 2020 reported sales growth between -1% to +1%; constant currency and operational sales growth of flat to up low single digits.

Headline financials

Total Revenue

$2.72B

Previous: $2.84B-4.3%
EPS (adj)

$0.64

Previous: $0.89-28.1%
Adjusted Operating Income

$436M

Previous: $507M-14.0%
Adjusted Net Income Attributable to Baxter Stockholders

$329M

Previous: $436M-24.5%
Free Cash Flow

$246M

Previous: $343M-28.3%
Net Income

$246M

Previous: $343M-28.3%
Operating Income

$331M

Previous: $355M-6.8%
Gross Profit

$1.04B

Previous: $1.16B-10.4%
Cash & Equivalents

$4.09B

Previous: $2.93B+39.7%
Total Assets

$19.5B

Previous: $17.5B+10.9%
Stock-Based Comp

$35M

Previous: $35M+0.0%

Revenue & EPS history

Baxter · Revenue · Quarterly

$2.72B

Q2 2020-4.3%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Baxter · $614M total across 2 segments · Q2 2020

  • Pharmaceuticals
    $485M-9.9%
  • Other
    $129M+5.7%

Forward guidance

Baxter expects full-year 2020 sales growth compared to the prior-year period to be between -1% to 1% on a reported basis and to be flat to up low single digits on both a constant currency and operational basis. The company expects U.S. GAAP earnings of $2.40 to $2.50 per share and adjusted earnings, before special items, of $3.00 to $3.10 per share.

Tailwinds

  • Expects full-year 2020 sales growth between -1% to 1% on a reported basis.
  • Expects constant currency and operational sales growth of flat to up low single digits.
  • Expects U.S. GAAP earnings of $2.40 to $2.50 per share.
  • Expects adjusted earnings, before special items, of $3.00 to $3.10 per share.
  • Assumes a sequential improvement on a quarterly basis in both hospital admissions and surgical volumes, although still below prior-year levels.

Headwinds

  • Sales growth is expected to be between -1% to 1% on a reported basis.
  • Hospital admissions and surgical volumes are expected to remain below prior-year levels.
  • Second-quarter revenue decreased 4% on a reported basis.
  • Second-quarter U.S. GAAP earnings per share (EPS) declined 20%; adjusted EPS declined 24%.
  • Lower rates of hospital admissions and declines of elective surgeries negatively impacted Medication Delivery, Pharmaceuticals, and Advanced Surgery businesses.

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 Q2 2020

Historical avgQ2 2020

-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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