Baxter (NYSE:BAX) shares are down today on mixed second-quarter results, with the medtech giant reducing its full-year outlook amid supply chain challenges and inflationary pressures.
BAX shares were down more than 10% to $59.66 apiece in morning trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up slightly.
The Deerfield, Ill.–based company — maker of renal care products, drug delivery devices and more — earned $252 million, or 50¢ per share, off $3.75 billion in sales for the quarter ended June 30, 2022, for a bottom-line slide of 15% and a top-line gain of 21%.
Adjusted to exclude one-time items, the company had EPS of 87¢, meeting the expectations of The Street, where analysts predicted an adjusted EPS of 87¢. Q2 revenues missed the analysts’ $3.88 billion projection.
“Baxter’s diverse, durable portfolio of essential healthcare products powers our business, even amid unprecedented macroeconomic headwinds,” Baxter CEO José (Joe) E. Almeida said in a news release.
“While we continue to navigate a dynamic near-term landscape, our recent combination with Hillrom is fueling the next phase of our transformation journey, unlocking new opportunities to advance our lifesaving mission and expand our impact across all sites of care worldwide.”
For the full year, Baxter now projects U.S. GAAP EPS of $1.82–1.92, adjusted EPS of $3.60–3.70 per diluted share — and high-teens sales growth on a reported basis, mid-20s sales growth on a constant currency basis, and 2% to 3% on an operational basis. That’s down from the company’s previous 2022 outlook — U.S. GAAP EPS of $2.35–2.43, adjusted EPS of $4.12–4.20 — and sales growth of 23–24% on a reported basis, 25–26 on a constant currency basis, and roughly 3% on an operational basis.
