Maybe Wall Street is getting too accustomed to Baxter International (NYSE: BAX) beating consensus earnings estimates.

The last time Baxter merely matchedthe consensus forecast was the third quarter of 2004. The last time it missed was the third quarter of 2003 -- by a penny. On Thursday, its earnings per share of $0.98, excluding one-time events, topped the average Wall Street third-quarter estimate by a penny, and beat last year's number by $0.10.

However, the medical conglomerate's stock was hit hard -- down 4.4%-as revenue was flat versus the year ago quarter. Third-quarter revenue of $3.14 billion lagged the consensus forecast estimate of $3.19 billion. Without the impact of foreign currency, Baxter's sales would have been up 6%.

More salesmanship needed
Given the market's reaction, it looks like Baxter and its well-diversified peers, Johnson & Johnson (NYSE: JNJ) and Abbott Labs (NYSE: ABT), will have to show finicky analysts that they can raise revenue even when adverse foreign currency exchange rates affect top line results from their far-flung empires.

On Tuesday, J&Jreported earnings per share of $1.20, beating Wall Street's forecast by $0.07. Similar to Baxter, the stock skidded because revenue of was lower than the year-ago quarter and under Wall Street's expectations.

On Wednesday, Abbott fared better.Its stock price actually rose after the company reported earnings per share of $0.92, excluding special items, or $0.02 better than the average analyst forecast. Maybe that's because this company actually gave Wall Street what it wanted on the revenue side, actually growing it over the year-ago quarter.

Buy and grow
Earlier this year, Baxter expressed an interest in strategic acquisitions,but it has only pulled the trigger on one deal which it described as "immaterial" to this year's results.

By contrast, Johnson & Johnson has purchased stakesin Elan (NYSE: ELN) and Crucell (Nasdaq: CRXL), as well as all of Cougar Biotechnology and breast-implant company Mentor.

Abbott Labs has been actively acquiring, including the recent agreementfor the drug division of Belgium's drug-and-chemical conglomerate Solvay as well as purchases of the eye-care companies Advanced Medical Optics and Visiogen . Continued...