Baxter’s profits nearly double during Street-beating Q3

Baxter (NYSE:BAX) nearly doubled its profits during the third quarter and handily beat the consensus expectation on Wall Street.

The Chicago-area healthcare giant posted profits of $251 million, or 45¢ per share, on sales of $2.71 billion for the three months ended Sept. 30, for a bottom-line gain of 93.1% on sales growth of 5.8%.

Adjusted to exclude one-time items, earnings per share were 64¢, a full nickel ahead of the consensus on The Street, where analysts were looking for sales of $2.66 billion.

“Baxter’s solid performance in the third quarter reflects our continued focus on disciplined execution,” chairman & CEO Joe Almeida said in prepared remarks. “We are advancing innovation and operational excellence across the organization to deliver positive results for our stakeholders – even as we respond to extraordinary challenges like the recent natural disasters across the Americas and the Caribbean. I’m proud of how our employees continuously step up to make a difference for our patients, healthcare providers, global communities and fellow colleagues.”

Baxter said production is limited at its three plants in Puerto Rico and that it won temporary permission from the FDA to import products from Ireland, Australia, Canada and Mexico to supply the U.S. market.

“While these actions will help mitigate some of the projected shortfall in supply, they will not be adequate to fully bridge the gap in the fourth quarter,” the company said.

That will likely mean a $70 million hit to fourth-quarter revenues, Baxter said, but held to its forecast for constant-currency sales growth of roughly 4%. Adjusted EPS are now pegged at $2.40 to $2.43, however, up from prior guidance of $2.34 to $2.40.

Fourth-quarter adjusted EPS are forecast to be 56¢ to 59¢ on constant-currency sales growth of roughly 2%, Baxter said.

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