Baxter Sees Q2 Adj. EPS In Line Or Below Market; Lifts FY24 View; Stock Down In Pre-market

(RTTNews) - Medtech firm Baxter International Inc. (BAX), while reporting weak first quarter profit, on Thursday issued second quarter earnings outlook in line or below market estimates, with sales growth. The company also lifted fiscal 2024 earnings view.

In pre-market activity on the NYSE, Baxter shares were losing around 3.05 percent to trade at $39.11.

For the second quarter, the company expects adjusted earnings, before special items, of $0.65 to $0.67 per share and sales growth of approximately 1 percent on a reported basis and 2 percent to 3 percent on a constant currency basis.

Analysts on average expect the company to report earnings of $0.67 per share for the quarter, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

For fiscal 2024, Baxter now expects adjusted earnings, before special items, of $2.88 to $2.98 per share and sales growth of around 2 percent on a reported basis and 2 percent to 3 percent on a constant currency basis.

The company previously expected annual adjusted earnings, before special items, of $2.85 to $2.95 per share on sales growth of approximately 2% on both a reported and constant currency basis.

In fiscal 2023, total adjusted earnings were $2.92 per share, and adjusted earnings from continuing operations were $2.60 per share.

Analysts expect earnings of $2.90 per share for the year.

In its first quarter, Baxter's profit decreased from last year but beat the Street estimates.

The company's bottom line came in at $37 million, or $0.07 per share. This compares with $44 million, or $0.09 per share, in last year's first quarter.

Adjusted earnings were $333 million or $0.65 per share for the period. Analysts had expected the company to earn $0.61 per share.

The company's revenue for the quarter rose 2.3 percent to $3.59 billion from $3.51 billion last year.

Baxter further said its preparations continue for the proposed separation of its Kidney Care segment. As announced on March 4, the company is exploring a potential sale of the Kidney Care business in lieu of a proposed spinoff of that business. No final decision on the separation structure has been made.

Baxter currently expects the separation of its Kidney Care business to take place in the second half of 2024.

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