Baxter (NYSE:BAX) shares were up today after the company reported preliminary net sales for the fourth quarter of fiscal 2019 that topped the Wall Street consensus.
The Deerfield, Ill.-based company posted net sales of $3 billion for the fourth quarter, marking 7% growth on a reported basis and 9% growth on an operational basis. That number brought Baxter’s full-year net sales to $11.4 billion for an increase of 2% (reported) and 5% (operational).
Baxter’s preliminary sales numbers beat the numbers estimated by Wall Street analysts, who projected fourth-quarter sales of $2.94 billion and annual revenue of $11.24 billion. Shares of BAX were up 3.75% at $89.12 per share in mid-afternoon trading today as a reflection of that.
Baxter also said it expects its fourth-quarter GAAP operating margin and adjusted operating margin to rise above previous guidance of 15.2% to 15.9% and 18.5% to 19% of sales, respectively. The company anticipates full-year 2020 sales growth of 4% to 5% and an operating margin of 17% to 18% (reported) and 19% to 20% (adjusted).
The preliminary numbers do not take into account the proposed $350 million acquisition of Sanofi’s (NYSE:SNY) Seprafilm adhesion barrier and related assets, which is expected to close in the first quarter of 2020.
Baxter expects to report on its complete third and fourth-quarter results, as well as full-year 2019, as soon as possible, but not later than the end of the first quarter of 2020, according to a news release.
“Our fourth quarter reflects Baxter’s strongest operational sales growth since the 2015 spin-off of Baxalta, driven by outstanding performance across all our global businesses and regions,” Baxter chairman & CEO José Almeida said in the news release. “We’re continuing to execute on our innovation pipeline and augment our businesses through strategic partnerships and acquisitions, all in pursuit of returning even greater value to our stakeholders now and in the years ahead.”