Bloomberg News

Baxter Profit Beats Analyst Estimates on Hemophilia Products (3)

January 23, 2014

Baxter International's Office Stands in Toronto

Baxter International Inc. signage is displayed outside of the company's office in Toronto. Baxter said sales gained 16 percent in the fourth quarter of 2013, boosted by demand for hemophilia treatments and medical products, as well as its acquisition of Gambro AB. Photographer: Brent Lewin/Bloomberg

Baxter International Inc. (BAX:US), a maker of dialysis products, reported fourth-quarter profit that beat analysts’ estimates on demand for hemophilia therapies.

Fourth-quarter earnings, excluding one-time items, of $1.26 a share beat by 1 cent the average of 15 analyst estimates (BAX:US) compiled by Bloomberg.

Sales rose 16 percent to $4.4 billion, boosted by the Advate and Feiba hemophilia treatments and the acquisition of Sweden’s Gambro AB, Deerfield, Illinois-based Baxter said in a statement today. Earnings excluding one-time items for 2014 will probably be $5.05 to $5.25 a share, the company said. The outlook (BAX:US) excludes 25 cents in amortization expenses.

“Overall, performance in the quarter looked solid,” Derrick Sung, an analyst with Sanford C. Bernstein & Co., wrote in a research note today. Baxter’s forecast missed his estimate of $5.29 a share, he said. “The weaker outlook raises some questions.”

Baxter declined 1.1 percent to $69 at the close of trading in New York. The shares have gained 3.6 percent in the last 12 months.

Net income in the quarter fell 34 percent to $326 million, or 59 cents a share, from $494 million, or 89 cents, a year earlier, Baxter said. The results were weighed down by $366 million in one-time items that included the cost of acquiring Gambro, the company said.

Baxter said in December 2012 it agreed to acquire Gambro for 18.3 billion kronor ($2.8 billion), adding a unit with about $1.6 billion in annual sales.

To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net

To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • BAX
    (Baxter International Inc)
    • $73.1 USD
    • 0.45
    • 0.62%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus