Baxter (NYSE: BAX) shares ticked up today on second-quarter results that came in ahead of the consensus Wall Street forecast.
Shares of BAX rose 7% to $37.06 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 1.1%.
The Deerfield, Illinois-based medtech company reported losses of $314 million. That equals 62¢ per share on sales of $3.81 billion for the three months ended June 30, 2024.
Baxter recorded a more than $170 million bottom-line slide deeper into the red on a sales uptick of 2.8%.
Adjusted to exclude one-time items, earnings per share came in at 68¢. That landed 2¢ ahead of expectations on Wall Street. Sales also posted a beat as experts forecast revenues of $3.76 billion.
The company said its better-than-expected sales growth extended across multiple portfolios. Pharmaceuticals, which grew by double digits, got a boost from new product launches and heightened demand. Baxter attributed mid-single-digit growth in Medical Products & Therapies to positive pricing and demand, plus the first U.S. sales of the Novum IQ large-volume infusion pump with Dose IQ safety software.
Baxter also reported growth in Healthcare Systems & Technologies, offset by lower sales in Front Line Care products. Kidney Care recorded growth, although select product and market exits offset that improvement. Baxter currently expects to separate its Kidney Care business in late 2024 or early 2025.
“Baxter’s strategic transformation continues to gain momentum and drive performance benefiting our broad range of stakeholders,” said José (Joe) E. Almeida, chair, president and CEO. “In addition to delivering positive top-line and bottom-line results in Q2 2024, Baxter’s portfolio of medically essential products continues to expand with the launch of leading-edge technologies and differentiated product presentations. We look forward to building on our positive trajectory and driving additional value for patients, healthcare providers, shareholders and our many other stakeholder communities.”
Baxter expects 2024 sales growth to total 3%, with adjusted earnings per share to range between $2.93 and $3.01.
