Benzinga - by Vandana Singh, Benzinga Editor.
Thursday, Baxter International Inc (NYSE:BAX) reported first-quarter adjusted EPS of $0.65, up 10% Y/Y, beating the consensus of $0.61 and the management guidance of $0.59-$0.62.
The company reported sales of $3.59 billion, which beat the consensus of $3.553 billion. Sales increased 2% on a reported basis and 3% on a constant currency basis, exceeding the company’s previously issued guidance of approximately 1% and 1% to 2%, respectively.
“Baxter’s results in the first quarter reflect the company’s solid operational performance, fueled by the benefits being realized from our ongoing strategic transformation initiatives, including our new operating model structure and continued strong execution across our integrated supply chain network,” said José (Joe) E. Almeida, chair, president and chief executive officer.
Baxter’s weakness is mainly in the healthcare systems and technologies segment.
Sales fell 9% on a reported and constant currency basis to $667 million, reflecting the phasing of certain orders to later in the year, the timing of backlog reduction efforts in the prior year period, softness in the U.S. primary care market, and some operational challenges.
Medical Products & Therapies sales increased 6% to $1.23 billion.
Guidance: Growth for the Healthcare Systems & Technologies segment is expected to meaningfully improve in the second half of the year.
Baxter expects 2024 sales growth of approximately 2% on a reported basis and 2% to 3% on a constant currency basis, compared to approximately 2% growth expected earlier.
The company expects adjusted EPS of $2.88-$2.98 compared to the consensus of $2.90 and the prior guidance of $2.85-$2.95.
For the second quarter, the company expects sales growth of approximately 1% on a reported basis and 2% to 3% on a constant currency basis, with adjusted EPS of $0.65-$0.67 compared to the consensus of $0.68.
Price Action: BAX shares are down 8.06% at $37.09 at last check Thursday.
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