UPDATE: Baxter (BAX) Tops Q3 EPS by 13c; Hikes FY16 EPS Outlook

(Updated - October 25, 2016 7:09 AM EDT)

Baxter (NYSE: BAX) reported Q3 EPS of $0.58, $0.13 better than the analyst estimate of $0.45. Revenue for the quarter came in at $2.56 billion versus the consensus estimate of $2.55 billion.

Outlook:

Based on the company’s strong performance in the first three quarters of the year, Baxter is raising its financial outlook for full-year 2016 including sales growth of approximately 2 percent on a reported basis or 4 percent on a constant currency basis, and earnings from continuing operations, before special items, of $1.88 to $1.91 per diluted share for the full year. Previous guidance called for reported sales of 1 to 2 percent (or 3 to 4 percent constant currency) and earnings of $1.69 to $1.74 per diluted share.

For the fourth quarter, the company expects sales growth of approximately 2 percent on both a reported and constant currency basis. Baxter expects earnings from continuing operations, before special items, of $0.49 to $0.52 per diluted share for the fourth quarter of 2016.

*** The Street sees FY16 EPS of $1.72 and Q4 EPS of $0.46.

The earnings per share guidance for the fourth quarter and full-year 2016 excludes $0.05 and $0.22, respectively, per diluted share of intangible asset amortization expense; an estimated $0.01 and $0.07, respectively, per diluted share of Baxalta separation-related expense activities; an estimated $0.07 and $0.51, respectively, per diluted share of business optimization charges; and $7.84 per diluted share of asset impairment, debt extinguishment loss, product related reserve adjustments, and Baxalta retained stake gains for full-year 2016. These estimates are based on information reasonably available at the time of this release and future events or new information may result in different actual results. Reconciling for the inclusion of these items results in GAAP earnings of $0.36 to $0.39 per diluted share for the fourth quarter of 2016, and $8.92 to $8.95 per diluted share for full-year 2016.

For earnings history and earnings-related data on Baxter (BAX) click here.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Tesla touts acceleration of new models, but Q1 results fall short of estimates
• Chubb Corp. (CB) Tops Q1 EPS by 10c
• Avangrid (AGR) Tops Q1 EPS by 19c