Baxter Reports Q1 Results; Raises Full-Year Guidance

Baxter has released the results of Q1 for its fiscal year 2024.
 
First-quarter sales reached $3.59 billion, growing 2% on a reported basis and exceeding the company’s previously issued guidance. Q1 U.S. GAAP diluted earnings per share (EPS) were $0.07 and adjusted diluted EPS were $0.65, which also topped the company’s previously issued guidance of $0.59-$0.62.
 
The company now expects full-year 2024 revenue growth of about 2% and full-year adjusted EPS of $2.88-$2.98.
 
First-quarter sales performance, according to Baxter, was driven by better-than-expected results in the majority of its business segments. Double-digit growth was posted in Pharmaceuticals (up 11%) due to new product launches and growing demand for Drug Compounding Services.
 
Medical Products & Therapies and Kidney Care both had mid-single-digit growth (up 6% and 3%, respectively), which reflected positive demand and pricing. This helped offset the decline in Healthcare Systems & Technologies (down 9%) due to phasing of some orders to later in the year, timing of backlog reduction efforts in the prior year, and softness in the U.S. primary care market.
 
Baxter also offered an update on the separation of its Kidney Care business on March 4, 2024. The company is exploring potential sale of the business instead of a proposed spinoff. A final decision has not yet been made on separation structure, but the company expects the separation to occur in the second half of 2024.
 
“Baxter’s results in the first quarter reflect the company’s solid operational performance, fueled by the benefits being realized from our ongoing strategic transformation initiatives, including our new operating model structure, and continued strong execution across our integrated supply chain network,” said José (Joe) E. Almeida, Baxter’s chair, president and CEO. “We are squarely focused on improving our operational execution and excited by the opportunities we are creating through recent innovation milestones. Our objective remains to accelerate performance and drive increased value for patients, healthcare providers and shareholders.”

Baxter’s Q1 Highlights