Baxter International Inc. (NYSE: BAX) posted double-digit growth to both its top and bottom lines during the second-quarter, thanks to steady growth in its bioscience, medical product and transfusion therapy businesses.
The Deerfield, Ill.-based company posted earnings of $629 million on sales of $3.5 billion for the three months ended June 30, an 11 percent increase in sales and a 17 percent increase in profits over the second quarter of 2010. That translates to diluted earnings per share of $1.07, up 19 percent over the 90 cents diluted EPS reported for Q2 2010.
"This performance was a result of double-digit sales growth, operational leverage, foreign currency favorability and the benefit from our ongoing share repurchase program," Baxter chairman, president & CEO Robert Parkinson said during a conference call with analysts.
The storm isn’t over just yet, Parkinson warned.
"While we’re pleased with improving fundamentals and enhanced financial performance as evidenced by our first half results, I highlight that we continue to navigate through a challenging macro environment that’s evolving on a global basis and continues to absorb ongoing pressures on our business and the healthcare industry more broadly," he said during the call.
Baxter has been struggling to regain Wall Street’s confidence since its shares plummeted more than 30 percent in one month, from $59.10 to $40.67, between April and May 2010.
Baxter raised its 2011 earnings outlook to between $4.27 and $4.32 diluted EPS, over previous guidance of between $4.20 and $4.28, according to the report.
Unlike Abbott (NYSE:ABT), whose "beat & raise" quarter did little for its share price, Baxter shares were up more than 2 percent to $62.22 in afternoon trading today, after setting a 52-week high-water mark of $62.47.