Baxter
(NYSE: BAX)
shares ticked up today on fourth-quarter results that came in ahead of the consensus forecast.
Shares of BAX rose 1.2% at $39.87 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — dipped 0.2%.
The Deerfield, Illinois-based company posted profits of $245 million. That equals 48¢ per share on sales of $3.885 billion for the three months ended Dec. 31, 2023. Baxter reported a 35.4% bottom-line gain on sales growth of 3.7%.
Adjusted to exclude one-time items, earnings per share came in at 88¢. That landed 2¢ ahead of Wall Street’s expectations. Sales also came in just ahead of the forecasts as analysts projected $3.8 billion in revenue.
Baxter’s sales performance topped both external and internal expectations, with the company highlighting better-than-expected sales in the Medical Products and Therapies, Kidney Care and Pharmaceuticals segments, in particular. Healthcare Systems and Technologies performed well, reflecting strength in Care and Connectivity Solutions.
The company noted a decline in Kidney Care sales, despite that segment still topping projections. Baxter plans to spin that business off, calling it “Vantive.” Previously, the company earmarked July 2024 as the timeframe in which it expects the company to stand alone. Baxter says that process continues to progress on schedule.
“Baxter’s performance in 2023 reflects our building momentum as we executed upon several strategic initiatives designed to enhance our future performance, including the implementation of a new operating model, the sale of our BioPharma Solutions business and steady progress on the proposed separation of our Kidney Care segment,” said José (Joe) E. Almeida, chair, president and CEO. “Results for the fourth quarter and full year reflect solid demand for a range of our medically essential products, as well as continued improvement in the macroeconomic and supply chain environment. We plan to build on this momentum in 2024 as our dedicated employees work to advance Baxter’s ongoing business transformation and prepare for the proposed separation of our Kidney Care segment.”
Baxter expects sales growth totaling 2% in 2024, with adjusted EPS set to land between $2.85 and $2.95.