Baxter Q2 Profit Tops View, Sees Q3 EPS Above Estimates, Lifts FY16 Forecast

(RTTNews) - Baxter International Inc. (BAX), a provider of essential renal and hospital products, reported Tuesday that its second quarter net income was $1.21 billion or $2.19 per share, significantly higher than last year's $332 million or $0.60 per share.

The results included net gain of approximately $1.1 billion from the disposition of the company's remaining shares of Baxalta Inc., which the company spun-off in July 2015.

On an adjusted basis, excluding special items, Baxter's net income totaled $256 million or $0.46 per share, compared to $0.19 last year.

On average, 14 analysts polled by Thomson Reuters expected earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

Baxter's worldwide sales totaled $2.59 billion, an increase of 4 percent from $2.48 billion last year. Sales grew 6 percent on a constant currency basis. Analysts were looking for revenues of $2.52 billion for the quarter.

Citing the strong results, the company raised its financial outlook for full-year 2016. For full-year 2016, Baxter now expects reported sales growth of 1 percent to 2 percent and on a constant currency basis, sales growth of 3 percent to 4 percent.

In addition, the company now expects earnings from continuing operations, before special items, of $1.69 to $1.74 per share for the full year, as compared to previous guidance of $1.59 to $1.67 per share. Analysts expect earnings of $1.64 per share.

For the third quarter, the company expects reported sales growth of 2 percent to 3 percent and on a constant currency basis, sales growth of 3 percent to 4 percent.

Baxter expects earnings from continuing operations, before special items, of $0.43 to $0.45 per share for the third quarter of 2016.

Analysts expect earnings of $0.42 per share.