Baxter (NYSE:BAX) managed to meet Wall Street analysts’ expectations with its 3rd-quarter earnings, but revenues for the healthcare conglomerate fell $40 million shy, sending shares down slightly this morning.
Deerfield, Ill.-based Baxter posted profits of $544 million, or 99¢ per share, on sales of $3.77 billion for the 3 months ended Sept. 30, for a 6.7% profit decline on 8.5% sales growth compared with Q3 2012.
Adjusted to exclude 1-time items, earnings were $1.19 per share, dead even with expectations on The Street. But analysts wanted more on the top line, expecting sales of $3.81 billion for the quarter.
The miss was likely driven by a later-than-forecast closing for Baxter’s blockbuster, $3.9 billion acquisition of Swedish dialysis giant Gambro AB, which closed Sept. 9 — more than a month later than expected.
"Our global presence and diversified healthcare model, together with the advancements we’ve made to our business portfolio and new product pipeline are focused on driving improved access to care, better outcomes for patients and enhanced value for our shareholders," chairman & CEO Robert Parkinson Jr. said in prepared remarks.
Baxter lowered its sales forecast for the full year from growth of 8%-9% to 7% and narrowed its earnings-per-share guidance from $4.62-$4.70 to $4.65-$4.67. Fourth-quarter EPS are pegged at $1.24-$1.26 on sales growth of 14%-15%, including a $400 million contribution from Gambro.
Investors responded by sending BAX shares down 0.6% to $67.18 apiece as of about 11 this morning.