Baxter Sees Q4 Earnings Below Market; Cuts FY22 View, Now Sees Net Loss - Update

(RTTNews) - While announcing third-quarter results, medtech firm Baxter International Inc. (BAX) issued fourth-quarter earnings view below market estimates, and trimmed fiscal 2022 outlook, now expecting a net loss.

In pre-market trade on the NYSE, Baxter shares were losing around 1 percent to trade at $57.04.

For fourth quarter, the company expects earnings of $0.60 to $0.67 per share and adjusted earnings of $0.92 to $0.99 per share.

On average, 13 analysts polled by Thomson Reuters expect earnings of $1 per share for the quarter. Analysts' estimates typically exclude special items.

The company expects fourth-quarter sales growth of mid-to-high single digits on a reported basis, mid-teens on a constant currency basis and approximately flat on an operational basis.

For fiscal 2022, Baxter now expects loss of $4.52 to $4.45 per share and adjusted earnings of $3.53 to $3.60 per share.

Analysts estimate earnings of $3.62 per share for the year.

The company now expects sales growth of 17 percent to 18 percent on a reported basis, approximately 23 percent on a constant currency basis and low single digits on an operational basis.

Previously, the company expected earnings in a range of $1.82 to $1.92 per share and adjusted earnings in a range of $3.60 to $3.70 per share on sales growth in the high-teens on a reported basis, in the mid-20s on a constant currency basis and 2 to 3 percent on an operational basis.

Baxter said its updated full-year financial outlook reflects the continued impact from supply constraints for electromechanical components, foreign exchange pressures as well as increased interest expenses and a higher effective tax rate.