In This Article:
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Total Company Sales Growth: 4% increase on both reported and constant currency basis.
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Adjusted Earnings Per Share (EPS): $0.80, ahead of guidance range of $0.77 to $0.79.
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Medical Products & Therapies Segment Growth: 7% increase at both reported and constant currency rates.
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Healthcare Systems & Technologies Segment Growth: 1% increase on both reported and constant currency rates.
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Pharmaceuticals Segment Growth: 1% increase on both reported and constant currency basis.
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Kidney Care Segment Growth: 4% increase on a reported basis and 5% at constant currency.
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Adjusted Operating Margin: 15.6%, inclusive of discontinued operations, an increase of 40 basis points versus the prior year.
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Adjusted Gross Margin: 42.5%, an increase of 80 basis points over the prior year.
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Net Interest Expense: $88 million, a decrease of $40 million versus the prior year period.
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Full Year Sales Growth Guidance: 1% to 2% as reported, approximately 2% on a constant currency basis.
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Full Year Adjusted EPS Guidance: $2.90 to $2.94 per diluted share, inclusive of discontinued operations.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Baxter International Inc (NYSE:BAX) reported a 4% sales growth in the third quarter of 2024, in line with prior guidance.
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The Medical Products & Therapies segment led with a 7% growth, driven by strong demand for the Novum IQ platform and Advanced Surgery division.
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The company achieved an adjusted earnings per share of $0.80, surpassing the guidance range of $0.77 to $0.79.
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Baxter's North Cove facility recovery efforts were ahead of schedule, with key production lines restarting sooner than expected.
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The pending sale of the Kidney Care business is progressing well, expected to close by late 2024 or early 2025, which aligns with Baxter's strategic transformation goals.
Negative Points
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Hurricane Helene significantly impacted Baxter's North Cove operations, leading to an estimated $200 million sales loss in the fourth quarter.
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The Healthcare Systems & Technologies segment showed only 1% growth, with challenges in the US primary care market and international sales declines.
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Pharmaceuticals segment growth was limited to 1%, with supply constraints and sales phasing issues affecting performance.
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Stranded costs from the Kidney Care business divestiture negatively impacted operating margins by 240 basis points in the third quarter.
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The company anticipates a continued negative impact from Hurricane Helene into the first quarter of 2025, affecting sales and operations.