Baxter’s Profit Strains Put Execution And Valuation Story Under Scrutiny

Simply Wall St.02-23 11:34

Baxter International (NYSE:BAX) reported fourth quarter revenue growth but weaker profitability. Management cited an unfavorable sales mix, higher costs, and operational challenges as key pressure ...

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Management cited an unfavorable sales mix, higher costs, and operational challenges as key pressure ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nyse-bax/baxter-international/news/baxters-profit-strains-put-execution-and-valuation-story-und\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Baxter’s Profit Strains Put Execution And Valuation Story Under Scrutiny</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBaxter’s Profit Strains Put Execution And Valuation Story Under Scrutiny\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-23 11:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/healthcare/nyse-bax/baxter-international/news/baxters-profit-strains-put-execution-and-valuation-story-und><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Baxter International (NYSE:BAX) reported fourth quarter revenue growth but weaker profitability. Management cited an unfavorable sales mix, higher costs, and operational challenges as key pressure ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nyse-bax/baxter-international/news/baxters-profit-strains-put-execution-and-valuation-story-und\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1267930490.SGD","symbol_name":"TEMPLETON GLOBAL EQUITY INCOME \"AS\" (SGD) INC A","start_time":0,"source_url":"https://simplywall.st/stocks/us/healthcare/nyse-bax/baxter-international/news/baxters-profit-strains-put-execution-and-valuation-story-und","article_id":"2613248205","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/6021000-choice1-main-header/1585186659638"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/healthcare/nyse-bax/baxter-international/news/baxters-profit-strains-put-execution-and-valuation-story-und","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2613248205","pubTimestamp":1771817652,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Baxter International (NYSE:BAX) reported fourth quarter revenue growth but weaker profitability.\nManagement cited an unfavorable sales mix, higher costs, and operational challenges as key pressure points.\nThe company recorded significant goodwill impairments that weighed on reported earnings.\nCEO Andrew Hider publicly called the quarter disappointing and said performance needs meaningful improvement.\n\nBaxter International, a major medical products and therapies company, sits at the center of...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1267930490.SGD":"TEMPLETON GLOBAL EQUITY INCOME \"AS\" (SGD) INC A","BK4504":"桥水持仓","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU0162691827.USD":"BGF US BASIC VALUE \"A4\" INC","LU2098885051.SGD":"JPMorgan Funds - Multi-Manager Alternatives A (acc) SGD","BK4588":"碎股","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","BK4585":"ETF&股票定投概念","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","BK4082":"医疗保健设备","LU0072461881.USD":"BGF US BASIC VALUE \"A2\" ACC","LU1303367103.USD":"摩根大通多经理另类基金 A (acc)","BAX":"百特国际","LU0006061336.USD":"Blackrock US Small and MidCap Opportunities A2 USD"},"translate_title":"百特的利润压力使执行和估值故事受到审查","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BAX":1.5},"content_text":"Baxter International (NYSE:BAX) reported fourth quarter revenue growth but weaker profitability. Management cited an unfavorable sales mix, higher costs, and operational challenges as key pressure points. The company recorded significant goodwill impairments that weighed on reported earnings. CEO Andrew Hider publicly called the quarter disappointing and said performance needs meaningful improvement.  Baxter International, a major medical products and therapies company, sits at the center of hospital supply chains and critical care treatments. For investors, the latest quarter indicates that selling more products did not automatically translate into healthier margins, particularly with cost pressures and mix shifts working against profitability. That combination of volume strength and profit strain is an important consideration for anyone tracking large medtech companies closely connected to hospital budgets. The company’s goodwill impairments and the CEO’s direct comments indicate that leadership is under pressure to tighten execution and reassess parts of the portfolio. As you follow NYSE:BAX, key areas to watch include how management addresses cost structure, product mix, and operational efficiency, and how those decisions may affect cash generation and balance sheet flexibility. Stay updated on the most important news stories for Baxter International by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Baxter International. NYSE:BAX 1-Year Stock Price Chart Does the team leading Baxter International have what it takes? See our full breakdown of the management team's track record and compensation. This quarter puts Baxter’s executive team, and new CEO Andrew Hider in particular, firmly in the spotlight. Revenue of US$2,974 million for the quarter and US$11,244 million for the year shows the product set is still moving through hospital systems, but the company reported a quarterly net loss of US$1,128 million and full year net loss of US$957 million, alongside US$485 million of goodwill impairments. When a CEO openly labels results as disappointing, it is often a signal that the bar for internal execution has been raised and that management credibility is now closely tied to visible operational progress. AdvertisementHow This Fits Into The Baxter International Narrative  The public focus on execution and cost discipline aligns with the existing narrative that new leadership could help drive efficiency gains and better-margin offerings over time. However, recurring impairment charges and continued losses highlight that margin pressure and operational issues are more entrenched than the narrative might suggest, which could complicate efforts to lift profitability. The company’s guidance for flat to 1% GAAP sales growth in 2026 and the small quarterly dividend affirmation of US$0.0100 per share introduce signals about management’s current risk tolerance and capital allocation that are not fully reflected in the prior storyline.  Knowing what a company is worth starts with understanding its story.\nCheck out one of the top narratives in the Simply Wall St Community for Baxter International to help decide what it is worth to you. The Risks and Rewards Investors Should Consider  ⚠️ Analysts have flagged at least one key risk, including concerns that Baxter’s debt is not well covered by operating cash flow, which can matter more when profitability is under strain. ⚠️ Continued net losses and repeated goodwill impairments point to lingering pressure on returns from past acquisitions, something investors may weigh against peers such as Medtronic, Becton Dickinson, or Abbott Laboratories that also compete in hospital-focused devices and supplies. 🎁 On the positive side, analysts see room for earnings growth and have highlighted that Baxter is trading at what they view as good value relative to peers and industry benchmarks. 🎁 Baxter is also assessed as trading below one independent estimate of fair value, which some investors may see as a potential entry point if they are comfortable with the execution risk.  What To Watch Going Forward From here, your focus is likely to be on how quickly management can translate Hider’s candid tone into measurable operational change. Key markers will include any shift in impairment charges, the path of losses or a move back toward profitability, and whether flat to 1% 2026 GAAP sales guidance proves conservative or tight. You may also want to track decisions on capital allocation, including how much flexibility Baxter has after years of buybacks totaling 103,783,750 shares, and how the small quarterly dividend fits into broader balance sheet priorities. Comparing Baxter’s progress on margins and product mix with large medtech peers can help you assess whether leadership is closing the execution gap. To stay informed on how the latest news impacts the investment narrative for Baxter International, head to the\ncommunity page for Baxter International to stay updated on the top community narratives.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Baxter International might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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