Technical Research on CareFusion and Baxter: Medical Equipment Companies on
LONDON, February 25, 2013
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 registration at
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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