On November 2, 2023, Baxter International Inc (BAX, Financial), a global leader in medical technology, reported its third-quarter earnings for 2023. The company's revenue from continuing operations reached $3.71 billion, marking a 3% increase on a reported basis and 2% on a constant currency basis. This performance exceeded the company's previously issued guidance.
Financial Performance
Baxter's U.S. GAAP earnings per share (EPS) from continuing operations stood at $0.09, while the adjusted EPS from continuing operations was $0.68, surpassing the company's guidance. The company's total net income attributable to Baxter was $2.51 billion, or $4.93 per diluted share. This includes $0.09 from continuing operations and $4.83 from discontinued operations. On an adjusted basis, the total net income attributable to Baxter was $415 million, or $0.82 per diluted share, exceeding the company's previously announced third-quarter 2023 guidance.
Strategic Realignment
Starting this quarter, Baxter has begun reporting performance according to four verticalized business segments, reflecting the strategic realignment announced in January 2023. This new model is designed to drive heightened innovation and improved agility in response to marketplace dynamics.
Divestiture and Spinoff
Baxter completed the divestiture of its BioPharma Solutions business at the end of the third quarter. This move is expected to further streamline Baxter's strategic focus. The company also continues to progress in its plans for the proposed spinoff of its Kidney Care segment into an independent, publicly traded company, expected to occur by July 2024 or earlier.
2023 Financial Outlook
For the full year 2023, Baxter expects adjusted earnings from continuing operations, before special items, of $2.57 to $2.60 per share. The company anticipates sales growth from continuing operations of 1% to 2% on a reported basis and approximately 2% on a constant currency basis. For the fourth quarter of 2023, Baxter expects adjusted earnings from continuing operations, before special items, of $0.85 to $0.88 per share.
Explore the complete 8-K earnings release (here) from Baxter International Inc for further details.
