Baxter International Inc., New York symbol BAX, has two divisions: Medical Products (57% of sales) makes intravenous pumps, syringes and kidney-dialysis equipment; and BioScience (43%) makes vaccines and drugs. Overseas markets account for 60% of its sales. As well, about half of Baxter’s sales are single-use medical products that hospitals and clinics must continually reorder. Baxter’s sales in the first quarter of 2011 rose 12.2%, to $3.3 billion from $2.9 billion a year earlier. The company is seeing strong demand for intravenous and nutritional therapies. Demand for injectable drugs is also rising. The stock market investment’s first-quarter 2011 earnings were $570 million, up 1.1% from $564 million a year earlier. Earnings per share rose 5.4%, to $0.98 from $0.93, on fewer shares outstanding. The year-earlier figures exclude costs related to the recall of defective drug infusion pumps. Research spending declined 5.7%, to $214 million (or 6.5% of sales) in the 2011 first quarter from $227 million (7.8% of sales). You can get our clear buy/sell/hold advice on Baxter and dozens of other U.S. stock market investments when you subscribe to Wall Street Stock Forecaster. What’s more, you can get the latest issue absolutely free. Click here to learn how.
Stock market investments: Baxter reports higher sales and earnings
Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.