NEW YORK - Baxter International Inc. (NYSE:{{7951|BABAX) reported third-quarter earnings that beat expectations, but shares fell 2% after the medical products company issued weaker-than-expected guidance for the fourth quarter.
The Deerfield, Illinois-based company posted adjusted earnings of $0.80 per share for Q3, exceeding analyst estimates of $0.78. Revenue came in at $3.85 billion, in line with expectations.
However, Baxter's fourth-quarter earnings forecast of $0.77 to $0.81 per share fell short of the $0.85 analysts were projecting. For the full year 2024, the company now expects adjusted EPS of $2.90 to $2.94, below the consensus estimate of $2.95.
"Baxter delivered positive performance in the third quarter of 2024, as the company continues to execute against its strategic transformation," said José (Joe) E. Almeida, chair, president and chief executive officer.
The company said it is making progress restoring production at its North Cove facility following damage from Hurricane Helene. Baxter expects the hurricane's aftermath to impact its near-term financial outlook.
Sales from continuing operations rose 4% YoY to $2.70 billion in Q3, with growth across all segments. The Medical (TASE:PMCN) Products & Therapies segment saw high single-digit growth, while Healthcare Systems & Technologies and Pharmaceuticals both grew at low single-digit rates.
Baxter maintained its expectation that the pending $3.8 billion sale of its Kidney Care business to Carlyle will close in late 2024 or early 2025. The company said this divestiture represents a "defining milestone" in its ongoing transformation.
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