Earnings Preview: Baxter International

Baxter International (BAX) is expected to report Q2 earnings before market open on Thursday, July 17, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for a profit of 82c on revenue of 3.05B. The consensus range is 80c to 82c for EPS, and revenue of $3.00B to $ 3.09B, according to First Call.

In its Q1 earnings release Baxter reported EPS 74c compared to consensus of 72c and revenue of $2.88B compared to consensus of $2.84B. Possible EPS drivers are a strong BioSciences division driven by Advate sales and productivity enhancements. Possible negative factors for this earnings period include the Heparin recall and negative changes to Medicare reimbursements.

Analyst Views

On June 23 Leerink Swann initiated the stock with an Outperform rating. On July 11, The firm increased their end of 2009 valuation to $75 from $70 to reflect the company's improving growth profile, consistent outperformance and continued excellent execution.