Baxter (NYSE:BAX) shares spiked to a 52-week high this morning after the healthcare giant reported Wall Street-beating 2nd-quarter adjusted earnings per share, despite a sales growth miss and sliding profits.
The Deerfield, Ill.-based company reported profits of $590 million, or $1.07 per share, on sales of $3.67 billion for the 3 months ended June 30.
That represents sales growth of 2.7%, lower than Wall Street’s $3.71 billion sales forecast, and a bottom-line slide of 10.7%.
But adjusted for 1-time items, earnings per share were $1.16, ahead of The Street’s expectations by 3¢. That, and a boost to the lower end of Baxter’s full-year earnings guidance, sent shares up today – despite a postponed closing date for its blockbuster buyout of dialysis company Gambro, now slated to close during the 3rd quarter.
"Baxter’s financial results reflect the benefits of our diversified healthcare model," chairman & CEO Robert Parkinson Jr. said in prepared remarks. "We continue to advance care across our key franchises in both developed and emerging markets, while focusing on innovation and R&D programs that will fuel future growth and enhance value for shareholders."
Baxter confirmed its outlook for the rest of the year, saying it still expects sales growth of 8%-9% including the Gambro deal or about 4% excluding that impact. Earnings per share are forecast to be between $4.62 and $4.70 per share, up 2¢ on the lower end from its prior guidance.
Third-quarter sales growth is expected to reach 6% excluding Gambro and 10%-13% including sales from the Swedish company, with EPS slated to reach $1.18-$1.21 per share, according to a press release.
BAX shares reached a high today of $74.14 before subsiding to $73.68 apiece as of about 11 a.m.