Baxter shares rally as Q4 earnings top estimates

Investing.com -- Baxter International Inc. saw its shares jump 7.5% after the medical technology company reported fourth-quarter earnings and revenue that exceeded analyst expectations.

The company posted adjusted earnings per share of $0.58, beating the consensus estimate of $0.52. Revenue came in at $2.75 billion, surpassing expectations of $2.67 billion and representing a 1% increase YoY on a reported basis and 2% growth at constant currency.

Baxter (NYSE: BAX)'s fourth-quarter performance was driven by better-than-expected sales in its Medical (TASE:BLWV) Products&Therapies and Pharmaceuticals segments. The Pharmaceuticals unit grew sales by high single digits, while Medical Products&Therapies sales were flat at reported rates but grew low single digits at constant currency.

"Our 2024 performance and related strategic milestones reflect Baxter's growing momentum in our pursuit of enhanced value for patients, healthcare providers, customers and shareholders," said Brent Shafer, chair and interim CEO.

For the full year 2024, Baxter reported sales from continuing operations of $10.64 billion, up 3% on both a reported and constant currency basis. Adjusted EPS from continuing operations was $1.89.

Looking ahead, Baxter provided guidance for Q1 2025 adjusted EPS of $0.47-$0.50 and full-year 2025 adjusted EPS of $2.45-$2.55. The company expects 2025 sales growth of 5-6% on a reported basis.

The positive quarterly results and outlook come as Baxter recently completed the sale of its Kidney Care business for $3.4 billion in net after-tax proceeds, positioning the company for its next stage of growth.

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