This medical device company beat analysts’ earnings estimates by $0.08 last quarter.
Baxter International Inc. (BAX)
From Wall Street Stock Forecaster
Baxter International Inc. (BAX; Conservative Growth Portfolio; TSINetwork Rating: Average; makes a variety of medical devices, including intravenous pumps and kidney-dialysis equipment.
The company continues to benefit from a multi-year restructuring plan it began in 2015. The plan cut $1.0 billion from the company’s annual expenses in 2018. Baxter now expects those savings to reach $1.2 billion when it completes the plan by the end of 2023.
The stock trades at 23.2 times the $3.28 a share it will probably earn in 2019. That’s a reasonable multiple, as research spending (about 5% of revenue) hurts current earnings and inflates the company’s p/e. The dividend is currently $0.76, paid annually.
Baxter is a buy.
Patrick McKeough, Wall Street Stock Forecaster, www.tsinetwork.ca, 888-292-0296, May 2019