Baxter expands share repurchase program to $3.4B

Baxter (NYSE:BAX) said yesterday that it expanded its share purchase program to $3.4 billion.

The Deerfield, Ill.-based company approved a $2 billion increase in authorization for the company’s existing share repurchase plan.

Baxter also declared a quarterly cash dividend of 19¢ per share of common stock to stockholders as of Dec 3, payable on Jan. 2, of 2019. The company’s indicated annual dividend rate is 76¢ per share of common stock.

“Baxter’s strong balance sheet allows us to serve our shareholders by investing in growth as well as returning value through dividends and share repurchases,” CFO Jay Saccaro said in prepared remarks.

Last month, Baxter shares fell after the healthcare company missed estimates on Wall Street with its third-quarter sales results and cut its revenue outlook for the rest of the year.

Baxter posted profits of $544 million, or $1.00 per share, on sales of $2.77 billion for the three months ended Sept. 30, for a bottom-line gain of 116.7% on sales growth of 2.2% compared with Q3 2017.

The company raised the low end of its earnings outlook, saying it now expects to report adjusted EPS of $2.98 to $3.00, compared with $2.94 to $3 previously, but cut its sales growth guidance to 5%, down from 6% previously.

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