UPDATE: Baxter Posts Upbeat Q3 Earnings, Issues Weak Earnings Forecast

Baxter International

reported upbeat earnings for the third quarter. The Deerfield, Illinois-based company posted a quarterly profit of $468 million, or $0.86 per share, versus a year-ago profit of $544 million, or $0.99 per share. Excluding special items, its adjusted earnings climbed 9% to $1.35 per share from $1.24 per share. Its net sales surged 13% to $4.2 billion. Baxter had projected earnings of $1.28 to $1.32 per share on sales growth of 12% to 13%. Analysts were expecting earnings of $1.31 per share on revenue of $4.21 billion. Sales within the United States gained 7% to $1.8 billion, while international sales jumped 18% to $2.4 billion. Baxter's medical products sales increased 17% to $2.52 billion. Its bioscience business' revenue climbed 8% to $1.67 billion. For the fourth quarter, the company projects earnings of $1.30 to $1.33 per share on sales growth of around 3%. Analysts projected earnings of $1.41 per share on sales of $4.39 billion. Baxter now expects full-year revenue growth of 11% to 12%, versus its earlier outlook of growth of 10% to 11%. It projects earnings of $4.86 to $4.89 per share, versus it earlier forecast of $5.10 to $5.20 per share. ''Our performance has afforded us the opportunity to accelerate investments in research and development and further enhance manufacturing, quality and operational excellence, while meeting our stated financial objectives,'' said Robert L. Parkinson, Jr., chairman and chief executive officer. Baxter shares declined 2.70% to $67.00 in pre-market trading.