Baxter
(NYSE: BAX)
shares ticked up today on third-quarter results that came in even with the consensus forecast.
Shares of BAX were up 1.6% at $33.30 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose slightly.
The Deerfield, Illinois-based company posted profits of $2.51 billion. That amounts to 9¢ per share on sales of $3.71 billion for the three months ended Sept. 30, 2023.
Baxter recorded a more than $4 billion bottom-line gain out of the red on sales growth of 2.7%.
Adjusted to exclude one-time items, earnings per share came in at 68¢, equaling expectations on Wall Street. Sales narrowly topped projections of $3.69 billion.
Baxter now expects adjusted EPS to range between $2.57 and $2.60. It previously projected between $2.92 and $3 if the BPS sale failed to go through. The company’s expectation of revenue growth between 1% and 2% remains the same as in the previous quarter.
What contributed to Baxter’s third-quarter performance?
Baxter attributed improved performance — which exceeded its guidance — to new product launches in pharmaceuticals, solid demand for medical products and therapies and continued improvement in product availability in healthcare systems and technologies. Kidney care sales came in better than expected as the company continues to work toward a spinoff.
That spinoff and the divestiture of its biopharma solutions (BPS) business represent part of a restructuring effort Baxter implemented at the start of the year. The restructuring effort goes into effect this quarter.
It aims to simplify its commercial and manufacturing footprint and improve its capital structure. The company said it completed the BPS divestiture in a deal with Advent International and Warburg Pincus at the end of this quarter.
“Baxter continues to successfully execute upon the slate of strategic actions we announced at the outset of 2023. These initiatives are centered on enhancing business performance and increasing innovation, to drive incremental value for all of our stakeholders,” said José (Joe) E. Almeida, chair, president and CEO. “This progress is demonstrated across several actions this quarter, including the completion of the biopharma solutions divestiture, verticalization of our four business segments and solid third-quarter performance. These milestones are critical in building momentum on Baxter’s ongoing transformation journey.”