The Deerfield, Ill.-based company posted profits of $247 million, or 48¢ per share, on sales of $2.7 billion for the three months ended June 30, 2020, for a 21.1% bottom-line slide) on a sales decline of -4.1%.
Adjusted to exclude one-time items, earnings per share were 64¢, 7¢ behind Wall Street, where analysts were looking for sales of $2.9 billion.
Baxter’s acute therapies segment received a boost in demand amid the COVID-19 pandemic, along with its renal care and clinical nutrition GBUs, helping to offset some of the financial downturns over the past several months.
However, the pandemic’s impact resulted in declines in the company’s medication delivery, pharmaceuticals, and advanced surgery businesses, which Baxter attributes to lower rates of hospital admissions and declines of elective surgeries in the wake of the pandemic.
“Baxter colleagues worldwide continue to address the urgent needs of patients, clinicians and first responders in the ongoing battle against COVID-19, while bringing our life-sustaining products to all those who depend on us for chronic and acute care,” Baxter chairman & CEO José Almeida said in a news release. “Our medically essential portfolio, geographic reach, and the power of our business transformation strengthen our underlying resilience as we navigate today’s unprecedented landscape, position for tomorrow’s challenges, and embrace our strategic opportunities.
“I am proud of our 50,000 employees, who are motivated by our mission to save and sustain lives and dedicated to enhancing value for all of our stakeholders.”
Baxter is projecting full-year 2020 adjusted EPS of between $3.00 and $3.10, with sales growth expected to range from -1% to 1% year-over-year.
BAX shares were down -6.1% at $85.23 per share in mid-afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -0.6%.