Baxter International Inc. posted a 12.3 percent earnings increase despite flat third-quarter sales, but upped its full-year guidance despite missing its Q3 earnings-per-share target.
The Deerfield, Ill.-based medical devices leviathan posted net income for the three months ended Sept. 30 of $530 million, on $3.15 billion in sales, compared with $476 million on sales of $3.15 billion during the same period last year.
Baxter failed to meet its previous earnings per share guidance of $0.95 to $0.97, posting $0.87 in earnings per diluted share. Still, despite the prospect of continued flat sales growth during the fourth quarter, the company upped its full-year earnings forecast from $3.76-$3.80 to $3.79-$3.81.
The company also took some lumps from the weak dollar, losing about 6 percent of sales growth for the quarter to unfavorable foreign exchange rates. Inside the U.S., sales rose 5 percent to $1.3 billion; international sales slid 4 percent to $1.8 billion.
The earnings increase stemmed from a 3.6-point increase in gross margins, which rose to nearly 52 percent of net sales ($1.63 billion) from 48.3 percent of net sales ($1.52 billion).
Here’s a rundown, courtesy of Leerink Swann, of some companies’ earnings releases and consensus estimates for sales and earnings-per-share:
- 10/20: Boston Scientific Corp.: Analyst estimates (mean): $2.04 billion, $.14 EPS
- 10/20: Stryker Corp.: Analyst estimates (mean): $1.62 billion, $.69 EPS
- 10/20: NuVasive Inc.: Analyst estimates (mean): $92.8 million, $.05 EPS
- 10/21: St. Jude Medical Inc.: Analyst estimates (mean): $1.17 billion, $.58 EPS
- 10/21: Zimmer Holdings Inc.: Analyst estimates (mean): $953 million, $.86 EPS
- 10/27: Hospira Inc.: Analyst estimates (mean): $932 million, $.68 EPS
- 11/4: Becton, Dickinson & Co.: Analyst estimates (mean): $1.84 billion, $1.25 EPS
- 11/17: Covidien, Ltd.: Analyst estimates (mean): $2.62 billion, $.70 EPS