Baxter (NYSE:BAX)
posted a classic beat-and-raise 2nd quarter today, handily topping expectations on Wall Street, boosting its outlook for the rest of the year and sending its share price up in early trading.
The Chicago-area healthcare giant logged profits of $130 million, or 24¢ per share, on sales of $2.56 billion for the 3 months ended Sept. 30, for a dramatic 12,900% bottom-line gain on sales growth of 2.9% compared with Q3 2015.
Adjusted to exclude 1-time items, earnings per share were 56¢, a full 11¢ ahead of The Street, where analysts were looking for sales of $2.55 billion.
“We are pleased with the continued strength across our core franchises as well as our improved financial performance, both of which are reflected in our third quarter results,” chairman & CEO Joe Almeida said in prepared remarks. “Given this progress, we are intensifying our focus on portfolio management and innovation to accelerate our efforts to introduce new products and therapies.”
BAX shares were up 2.9% to $49.86 apiece today in early trading.
Baxter said it now expects to report adjusted EPS of $1.88 to $1.91 on sales growth of 2%, up from prior guidance of $1.69 to $1.74 on sales growth of 1% to 2%. Fourth-quarter adjusted EPS are pegged at 49¢ to 52¢ on sales growth of 2%, the company said.
Sales for Baxter’s hospital products division were up 2% to $1.6 billion. Renal sales were $977 million, up 4%, Baxter said.
