Baxter Q4 Earnings Beat Expectations, Issues Strong 2025 Outlook

On Thursday, Baxter International Inc. BAX reported a fourth-quarter 2024 adjusted EPS of 58 cents, beating the management guidance of 50 cents-53 cents and the Wall Street estimate of 52 cents.

The medical device company reported sales of $2.75 billion, up 1% year over year (+2% on a constant currency basis), beating the consensus of $2.67 billion.

The fourth quarter’s top-line performance exceeded previous guidance, driven by better-than-expected sales in the company’s Medical Products & Therapies and Pharmaceuticals segments. 

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Medical Products & Therapies sales were flat at $1.31 billion at reported rates and up low single digits at constant currency rates due to reduced sales of IV solutions, which, as expected, declined due to the impact of Hurricane Helene.

Infusion systems product portfolio, parenteral nutrition products, and strong demand for Advanced Surgery products drove the growth.

Pharmaceutical unit sales increased 8% to $643 million, driven by double-digit growth in specialty injectables, reflecting continued momentum from recent new product launches and ongoing strength in Drug Compounding.

Healthcare Systems & Technologies sales declined 1% to $784 million. Sales growth in the U.S. Care and Connectivity Solutions division was fueled by strength in the Patient Support Systems business due to upgrades from existing customers and new competitive wins, offset by select product/market exits.

Guidance: Baxter expects 2025 adjusted EPS of $2.45-$2.55 versus consensus of $2.47, with sales growth of 5%-6% on a reported basis and 4%-5% on an organic basis.

Baxter expects Q1 2025 adjusted EPS of $0.47-$0.50 versus consensus of $0.52, with sales growth of 3%-4% on a reported basis and approximately 4% on an operational basis.

In the third quarter earnings release, Baxter said it anticipates a full-year 2025 adjusted operating margin of approximately 16.5% on a continuing operations basis, which reflects an anticipated 100 basis point negative impact due to stranded costs. The company expects to offset these stranded costs in 2027.

Price Action: BAX stock is up 8.14% at $33.33 at the last check on Thursday.

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