Baxter International Inc (BAX) Quote - XNYS | Morningstar

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Baxter Delivers Strong Q3 With Higher-Than-Expected Margins; No FVE Change

Senior Equity Analyst Julie Utterback

Julie Utterback, CFA Senior Equity Analyst

Analyst Note

| Julie Utterback, CFA | Oct 28, 2021

Baxter reported strong third-quarter results, including higher margins than we were expecting. Even after mildly increasingly our near-term profit assumptions, though, our $86 fair value estimate has not changed materially. We continue to view Baxter's moat as narrow and built on its essential dialysis and injectable therapies, which have both intangible assets and switching costs as moat sources.

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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

Global_CORP_Investor_Relations@baxter.com

Sector Healthcare

Industry Medical Instruments & Supplies

Most Recent Earnings Sep 30, 2021

Fiscal Year End Dec 31, 2021

Stock Type Classic Growth

Employees 50,000

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