Baxter Q2 Adj. Profit Declines

(RTTNews) - Baxter International Inc. (BAX) reported a second quarter loss from continuing operations of $193 million or $0.39 per share compared to profit of $185 million or $0.36 per share, last year. Adjusted earnings per share was $0.66, down 24% from a year ago. Adjusted earnings per share from continuing operations was $0.55, down 25%.

On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.60, for the quarter. Analysts' estimates typically exclude special items.

Second quarter net sales were $3.71 billion, up 3% from prior year. Analysts on average had estimated $3.79 billion in revenue.

The company expects third-quarter adjusted adjusted earnings from continuing operations of $0.65 to $0.67 per share.

The company's current expectation is that the pending sale of BioPharma Solutions or BPS is likely to close towards the end of the third quarter. The company provided a financial outlook that also contemplates a scenario in which the transaction does not close in 2023.

If the BPS sale is completed on September 30, 2023, the company projects 2023 adjusted earnings from continuing operations of $2.54 to $2.62 per share. If BPS remains a part of Baxter through full year, the company projects 2023 adjusted earnings from continuing operations of $2.49 to $2.57 per diluted share; and sales growth from continuing operations of 1% to 2% on a reported basis and approximately 2% on a constant currency basis.

Baxter is preparing to spin off its Renal Care and Acute Therapies global businesses into an independent, publicly traded company. The spinoff is currently expected to occur by July 2024 or earlier.

Shares of Baxter International are down 3% in pre-market trade on Thursday.

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