($BAX) Baxter International – ROE of 35%, soaring past the industry average of 8%$

Baxter International Inc. (BAX) recently posted second-quarter earnings of 96 cents per share, topping the consensus estimate by 2% and surpassing the previous year’s 85 cents. The company also upped its full-year earnings guidance, and analysts followed suit.

Company Description

Baxter International develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions.

As a global diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide. The company’s products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices, clinical and medical research laboratories, and by patients at home under physician supervision. Baxter manufactures products in 26 countries and sells them in more than 100 countries.

A Solid Quarter

The company recently posted second-quarter earnings of 96 cents per share, topping the consensus estimate by 2% and surpassing the previous year’s 85 cents.

Worldwide sales of $3.1 billion slipped by 2%. Excluding the impact of foreign currency, worldwide sales were up 8%. U.S. sales climbed 7% to $1.3 billion. International sales dipped by 8% to $1.8 billion. Excluding the impact of foreign currency, international sales increased 9%.

The company also upped its full-year earnings guidance, and analysts followed suit.

Baxter sees a 2009 earnings range of $3.76 to $3.80 per share. Analysts are calling for 2009 earnings of $3.79, up 2 cents in just the past week.

Favorable Industry Comparisons

Baxter offers a return on equity (ROE) of 35%, soaring past the industry average of 8%. The company boasts a net profit margin of 18%, surpassing the industry average of 15%. Baxter also rewards shareholders with an industry-leading dividend yield of 2%.

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