What Happened?
Shares of healthcare company Baxter International (NYSE:BAX) fell 20% in the afternoon session after the company reported disappointing second-quarter results and cut its full-year profit forecast, citing the lingering impact of a hurricane. The healthcare company pointed to the lingering effects of Hurricane Helene, which damaged a key manufacturing facility and disrupted the supply of its IV solutions. Baxter’s adjusted earnings per share of 59 cents missed analysts' estimates, while revenue of $2.81 billion also came in slightly below expectations. In response to these challenges and what management called demand softness, the company lowered its full-year profit guidance. The weak results and revised outlook prompted a negative reaction from investors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Baxter? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Baxter’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Baxter and indicate this news significantly impacted the market’s perception of the business.
Baxter is down 22.3% since the beginning of the year, and at $22.74 per share, it is trading 43.5% below its 52-week high of $40.26 from September 2024. Investors who bought $1,000 worth of Baxter’s shares 5 years ago would now be looking at an investment worth $263.20.
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