Investors bid shares of Baxter (NYSE:BAX) up this morning after the healthcare giant reported sales and earnings that beat expectations on Wall Street and its own prior guidance, despite declines for both numbers.
The Deerfield Park, Ill.-based company said profits were down -22.7% to $430 million, or 78¢ per share, on a sales decline of -2.2% to $3.76 billion for the 3 months ended March 31.
But adjusted to exclude 1-time items, profits were $550 million, or $1 even per share, well ahead of the 88¢ forecast on The Street. Analysts there were looking for revenues of $3.69 billion; Baxter had guided to adjusted EPS of 85¢ to 90¢.
Almost exactly 1 year ago Baxter announced its plan to spin out its pharmaceuticals business as Baxalta, which is slated to occur mid-year.
Chairman & CEO Robert Parkinson Jr. said the split will benefit shareholders "from the unique attributes, distinct profiles, growth prospects and strategies of the 2 new companies."
"We continue to successfully deliver on a wide range of strategic and operational objectives that will drive future growth and position us for sustained success," Parkinson said in prepared remarks.
Baxter said it expects to post adjusted EPS of 92¢ to 96¢ per share, on constant-currency sales growth of 1% (-9% to -10% including foreign exchange rate effects). Financial guidance for both Baxalta and Baxter is scheduled to be released next month, Baxter said.
BAX shares were trading at $71.49 apiece, up 1.6%, in early activity today.