The Deerfield, Ill.-based company posted profits of $359 million, or 69¢ per share, on sales of $2.97 billion for the three months ended Sept. 30, 2020, for a -4.3% bottom-line slide on sales growth of 4.2%.
Adjusted to exclude one-time items, earnings per share were 83¢, 10¢ ahead of Wall Street, where analysts were looking for sales of $2.8 billion.
Baxter saw a low single-digit decline in medication delivery, while sales continued to feel the wrath of lower rates of emergency room utilization and hospitalizations brought on by the COVID-19 pandemic. However, the company’s acute therapies segment saw growth related to increased demand due to the pandemic.
“Baxter’s third-quarter performance reflects ongoing demand for our medically essential products as well as the company’s agility and resilience amid a historic public health crisis,” Baxter chairman & CEO José Almeida said in a news release. “Our multiyear transformation has positioned us with the strength and adaptability to address today’s unique challenges while continuing to identify opportunities to drive additional value for patients, clinicians, communities and shareholders.”
Baxter said it now expects to log adjusted EPS of $3.02 to $3.05. That outlook assumes double-digit declines in hospital admissions and mid-single-digit declines in surgical volumes during the fourth quarter when compared to pre-pandemic levels.
BAX shares were up 1.8% at $79.64 in early-morning trading today.