Baxter (NYSE:BAX) beat Wall Street’s forecast for its 4th-quarter sales and earnings today, but a bottom-line hit from its $4 billion acquisition of Gambro and earnings guidance for 2014 combined to send its share price down a hair today.
Baxter posted profits of $326 million, or 59¢ per share, on sales of $4.37 billion for the 3 months ended Dec. 31, 2013, representing a 34.0% profit decline on 16.4% sales growth compared with the same period in 2012. Adjusted to exclude 1-time items, profits were $692.0 million, or $1.26 per share, a penny ahead of expectations on Wall Street. Baxter still managed to beat The Street’s top-line forecast by a cool $118 million.
Full-year profits came in at $2.01 billion, or $3.66 per share, on sales of $15.26 billion, for a 13.5% profit slide on 7.5% sales growth. Adjusted profits were $2.57 billion, for adjusted EPS of $4.67, again a penny ahead of The Street.
"We continue to meet our financial objectives while navigating a challenging and complex macro-environment," chairman & CEO Robert Parkinson Jr. said in prepared remarks. "We remain focused on the company’s strategic priorities of advancing the new product pipeline, investing in future growth opportunities, and strengthening our operational execution, which will result in enhanced value for patients, healthcare providers and shareholders."
Baxter said the buyout of Swedish dialysis giant Gambro was largely responsible for a $366 million, 67¢ after-tax charge during the 4th quarter.
First-quarter EPS are slated to reach $1.06 to $1.09 on sales growth of 13%-14%, according to a press release. Full-year EPS, pegged at $5.05 to $5.25 on sales growth 9%-10%, just meets expectations on The Street at the top end.
BAX shares were trading at $69.47 apiece as of about 1:40 p.m. today, down 0.4%.