Shares in Baxter (NYSE:BAX) held steady today after the medical device maker exceeded earnings expectations on Wall Street with its 4th quarter results, but barely missed revenue estimates.
The Deerfield, Ill.-based company posted profits of $243 million, or 44¢ per share, on sales of $2.64 billion for the 3 months ended Dec. 31, for bottom-line growth of 18.5% on sales growth of 1.5% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were 57¢, ahead of consensus on The Street, where analysts were looking for sales of $2.65 billion.
“Baxter’s solid operational performance in 2016 was fueled by strong sales and disciplined execution across the organization,” chairman & CEO José Almeida said in prepared remarks. “We’ll continue to build on this momentum in 2017 and beyond, driven by new product launches, effective portfolio management and further progress on our business transformation initiatives – all in support of delivering sustainable top-quartile results for our shareholders, and advancing our mission to save and sustain lives.”
Baxter said it expects to post adjusted EPS of $2.10 to $2.18 per share for the full year 2017. For the 1st quarter of 2017, the company said it expects sales growth in the range of 3% to 4% and estimates forecast adjusted earnings to fall somewhere between 50¢ and 52¢ per share.
BAX shares were trading at $47.52 apiece today in afternoon trading, down -0.8%.
Earlier this month, Baxter agreed to pay $18 million to settle criminal and civil cases regarding a sterile intravenous solution plant in North Carolina where mold was found in air filters.
The agreement includes penalties and forfeitures of $16 million and another $2.2 million to settle a civil qui tam lawsuit with the U.S. Justice Dept. Whistleblower Christopher Wall, who filed the False Claims suit, is due to receive about $432,000 from the case, according to the Justice Dept.
In December, the company laid off 12 employees from its Bloomington, Ind. facilities. The dismissals marked the 2nd round for Baxter at its Bloomington facilities, after the company laid of 36 employees in 2015.