Baxter Shares Fall Despite Better-Than-Expected Q3 Earnings, FY21 EPS Outlook Boost

Loading...
Loading...
  • Baxter International Inc BAX posted Q3 revenue of $3.23 billion, in line with the consensus, up 9% on a reported basis, 7% on a constant currency basis, and 6% on an operational basis.
  • Adjusted EPS of $1.02 increased 23% and surpassed the estimate of $0.94.
  • Growth was led by increased sales in BioPharma Solutions, which benefitted from multiple collaborations to help manufacture COVID-19 vaccines on a contract basis. 
  • Medication Delivery sales growth advanced low double digits, driven by strength in the U.S. for IV therapies and infusion systems products.
  • Clinical Nutrition, Acute Therapies, and Advanced Surgery delivered mid-single-digit growth, driven by ongoing demand, particularly outside the U.S.
  • The gross and operating margins remained almost unchanged at 40% and 16%, respectively.
  • Outlook: Baxter expects FY21 sales growth of approximately 7% - 8% on a reported basis, 5% - 6% on a constant currency basis, and 4% - 5% on an operational basis. 
  • It expects an adjusted EPS of $3.58 - $3.62, better than the previous guidance of $3.49 - $3.55, versus the $3.34 consensus.
  • For Q4, Baxter expects an adjusted EPS of $1.00 to $1.04, with sales growth of 3% - 4% on a reported basis, 4% - 5% on a constant currency basis and 3% - 4% on an operational basis
  • Price Action: BAX shares traded 4.07% lower at $78.72 on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceHealth CareMoversTrading IdeasGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...