Baxter International Inc. (NYSE:BAX) is down 19.4% at $22.66 at the last check on Thursday. At around 11 a.m. EST, shares of the medical device company traded at $21.68—just shy of its 52-week low.
Baxter reported a second-quarter adjusted EPS of 59 cents. That’s inline with the management guidance of 59-63 cents and the Wall Street estimate of 61 cents.
Baxter reported sales of $2.81 billion, up 4% year over year on a reported basis and 1% on an operational basis. That’s almost in line with the consensus of $2.82 billion.
Management expected second quarter sales growth of 4%-5% on a reported basis and 1%-2% on an operational basis.
Medical Products & Therapies sales were flat year-over-year (+1% on a constant currency basis) at $1.32 billion.
Performance in the quarter reflected global strength for Advanced Surgery and infusion systems products within the Infusion Therapies & Technologies division. The softness in demand for IV solutions, due to fluid conservation efforts enacted following Hurricane Helene, offset the segment's growth in the quarter.
Healthcare Systems & Technologies sales for the second quarter totaled approximately $767 million, an increase of 3% on a reported and 2% on an operational basis.
Performance in the quarter reflected solid global growth for the Care & Connectivity Solutions division, with notable improvements in international growth.
Sales in the Front Line Care division improved sequentially but declined compared to the prior year, driven by softness in select markets outside the U.S.
Pharmaceutical sales reached $612 million, an increase of 2% on a reported basis and 1% on an operational basis.
Positive performance in the quarter reflected strength in Drug Compounding, which was partially offset by reduced sales of Injectables & Anesthesia.
Injectable sales declined 1%, primarily reflecting a difficult comparison to the prior-year period due to the timing of a government order. Anesthesia sales declined low double digits in the quarter globally.
Guidance: Baxter lowered its 2025 adjusted earnings guidance from $2.47-$2.55 to $2.42-$2.52 compared to the consensus of $2.52.
Baxter expects sales growth from continuing operations of 6%-7% on a reported basis, down from the prior range of 7%-8%. On an operational basis, Baxter expects sales growth of 3% to 4%, compared to 4%-5% expected previously.
For the third-quarter, Baxter expects sales growth from continuing operations of 6% to 7% on a reported basis. It also expects 3% to 4% on an operational basis.
The company expects adjusted earnings of 58 to 62 cents per share, below the consensus of 65 cents.
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