Baxter (NYSE:BAX) shares are up today after the healthcare giant posted better-than-expected 1st-quarter earnings and raised its outlook for the rest of the year.
Profits for Deerfield, Ill.-based Baxter surged 684.6% to $3.38 billion, or $6.12 per share, despite a sales decline of -1.2% to $2.38 billion compared with Q1 2015. The bottom-line gain came thanks to an after-tax windfall of some $3.3 billion from the Baxalta spinout last July.
Adjusted to exclude 1-time items, earnings per share were 36¢, well ahead of Wall Street’s 29¢ consensus.
“We are off to a strong start in 2016, with 1st-quarter results exceeding our expectations,” chairman &CEO Joe Almeida said in prepared remarks. “Our new strategic framework focused on portfolio optimization, operational excellence and capital allocation is driving improved performance throughout the organization and is reflected in our increased financial outlook for the year. We are confident our strategy positions the company for sustainable growth and value creation for all our stakeholders.”
Baxter said it now expects to report adjusted EPS of $1.59 to $1.67 this year, up from prior guidance of $1.46 to $1.54, on sales growth of 1% (compared with -1% previously). Second-quarter adjusted EPS are pegged at 38¢ to 40¢ on sales growth of roughly 2%, the company said.
BAX shares gained 1.9% in early trading today, rising to $44.45 apiece.
