Baxter International (BAX) Surprises with Strong Q3 Earnings, Beating Expectations Despite Hurricane Impact
Baxter International Inc. (BAX) delivered a strong performance in the third quarter of 2024, exceeding analysts’ expectations and highlighting the resilience of its core businesses. The medical device company reported adjusted earnings per share (EPS) of 80 cents, surpassing both management guidance (77-79 cents) and Wall Street estimates (78 cents). This positive result was driven by strong revenue growth in the Medical Products & Therapies and Kidney Care segments, coupled with ongoing improvements in the integrated supply chain and disciplined expense management.
Despite facing headwinds from Hurricane Helene, which disrupted operations at its North Cove manufacturing facility, Baxter demonstrated its ability to navigate unforeseen challenges. The company’s sales for the quarter reached $3.85 billion, in line with consensus estimates. Excluding BioPharma Solutions (BPS) sales and including Kidney Care sales in both periods, Baxter’s worldwide sales grew 4% year-over-year, consistent with the company’s prior guidance.
Key Highlights:
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Strong Revenue Growth:
Baxter’s Medical Products & Therapies revenue increased by 7% to $1.34 billion, while Healthcare Systems & Technologies sales rose 1% to $752 million and Pharmaceuticals sales climbed 1% to $588 million.*
Supply Chain Resilience:
Despite the challenges posed by Hurricane Helene, Baxter has successfully restarted the highest-throughput IV solutions manufacturing line at its North Cove facility. This line is expected to be fully operational by the end of November, allowing Baxter to resume normal production levels and meet customer demand.*
Positive Outlook:
Despite the hurricane’s impact, Baxter remains confident in its growth trajectory, particularly following the pending sale of its Kidney Care business. The company forecasts adjusted EPS of 77-81 cents for the fourth quarter, with sales from continuing operations expected to decline in the low-single digits.Looking Ahead:
Baxter is well-positioned for continued success in the long term. The company’s commitment to innovation, operational efficiency, and strategic acquisitions will drive future growth. While the recent hurricane impact may create short-term challenges, Baxter’s solid financial performance and positive outlook for the future bode well for investors.
Price Action:
BAX stock was down 1.22% at $35.60 in pre-market trading on Friday, following the release of the earnings report.
