Baxter International Inc. : Technical Research on CareFusion and Baxter: Medical Equipment Companies on M&A Spree
02/25/2013| 08:05am US/Eastern
LONDON, February 25, 2013 /PRNewswire/ --
Medical equipment sector is highly competitive and companies need to grow through
constant innovations and mergers to remain relevant. The result is generally positive for
the investors as Baxter International Inc. (NYSE: BAX) recently declared its quarterly
dividend. The companies in this field are consolidating their positions as CareFusion
Corporation (NYSE: CFN) is on the verge completing its acquisition of a Brazilian company.
StockCall has posted free technical research reports on CareFusion and Baxter
International and these can be accessed by signing up at
Baxter International Inc. Announces Dividend
Baxter International Inc. announced its latest quarterly dividend at 45 cents per
share. The company's dividend yield stands at 2.69 percent and the stock appreciated 17
percent in the past 52 weeks. The company recently completed the acquisition of OBI-1, a
hemophilia compound from Inspiration Biopharmaceuticals. Inspiration is in the process to
liquidate and hence, disposing off its assets. The acquisition of the compound will help
Baxter International Inc. in consolidating its position in hemophilia market. Baxter
International Inc. technical report can be accessed for free by signing up at
Baxter International Inc. is generating good hedge fund buying interest as well. The
company's stock is being held by Baker Ellis Asset Management LLC. It is also one of the
biggest holdings of hedge fund Iridian Asset Management. Apart from this, Citadel
Investment Group increased its stake in the company in the third quarter. Institutional
buying is considered a good omen for the future performance of the stock.
The stock performed this year and is expected to keep up the momentum as it announced
encouraging results for its fiscal fourth quarter. Its revenue for the quarter stood at
$3.75 billion, surpassing consensus estimate of $3.71 billion. Its EPS matched analysts'
expectations of $1.26 per share. This year it is likely to benefit from its acquisition of
Swedish company, Gambro. The deal is expected to create synergies worth $300 million.
Overall, the company has good prospects on the horizon.
CareFusion Corporation Touches New Highs
CareFusion recently created a new 52-week high and the stock rose 14.5 percent so far
in this year. The company also reported good quarterly results with $909 million in
revenue, up from $890 million in revenue it had reported for the second quarter of the
last year. Its adjusted net income for the quarter stood at 54 cents per share. Thus, the
company showed overall growth. Download the free report on CareFusion Corp. upon
CareFusion, however, got dropped by David Einhorn's Greenlight Capital Inc., which
sold 4.59 million shares of the company in the third quarter. However, the stock grew 25
percent in the past 52 weeks and with its good results, the prospects for the stock are
bright. Its stock is currently trading at Price/Earnings ratio of 18.91, in-line with
industry standard, albeit a little on the higher side. Its high Price/Earnings ratio is,
however, justified by the growth rate of the company.
CareFusion also undertook M&A exercise as it acquired Intermed Equipamento Medico
Hospitalar late last year. The acquisition is expected to be finalized in the second
quarter of this year and while it would be slightly dilutive in fiscal 2013, for fiscal
2014, the acquisition will have neutral impact. The long-term impact of the acquisition is
expected to be positive.
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