Why Baxter (BAX) Shares Are Plummeting Today - Baxter Intl (NYSE:BAX)

Baxter International Inc BAX posted Q2 revenue of $3.75 billion, missing the consensus of $3.88 billion, up 21% on a reported basis, 26% on a constant currency basis, and 3% on an operational basis.
Adjusted EPS of $0.87 increased 9%, in line with the consensus and the management guidance.
Baxter's newly acquired Hillrom businesses – Patient Support Systems, Front Line Care, and Surgical Solutions – contributed approximately $715 million on a reported basis.
The gross margin decreased from 39.8% to 38.8%, and the operating margin declined from 13.7% to 9.1%.
Growth in the quarter was partially offset by a decline in Acute Therapies and BioPharma Solutions, reflecting a challenging year-over-year comparison resulting from the prior year COVID-19 related sales in those businesses.
Outlook: Baxter expects FY22 sales growth in the high teen percentage versus the previous range of approximately 23% - 24% on a reported basis and around 2-3% on an operational basis (earlier 3%).
It expects an adjusted EPS of $3.60 - $3.70, down from $4.12 - $4.20 anticipated previously, versus the consensus of $4.13.
For Q3, Baxter expects an adjusted EPS of $0.79- $0.83 compared to the Wall Street estimate of $1.10.
The company forecasts sales growth in the low single digit on an operational basis.
Price Action: BAX shares are down 9.27% at $60.61 during the market session on the last check Thursday.

Baxter Shares Plunge After Q2 Earnings Miss, Disappointing FY22 Guidance