Q2 2024 Baxter International Inc Earnings Call Transcript
Key Points
- Baxter International Inc (BAX) exceeded its previously issued guidance on both the top and bottom lines for the second quarter of 2024.
- The company increased its full-year sales outlook and adjusted EPS guidance due to strong performance.
- Sales growth was broad-based across all four Baxter segments, with notable demand and improved pricing for products.
- The Pharmaceuticals segment grew 9% at reported rates and 11% at constant currency rates, driven by new product launches and strong demand.
- Baxter's operational efficiency improvements and integrated supply chain network contributed to strong performance, offsetting negative impacts from foreign exchange and higher tax rates.
- The Health Care Systems and Technologies (HST) segment experienced a decline in the frontline care division due to a difficult comparison to the prior year and continued softness in the US primary care market.
- Kidney Care sales were flat year over year at reported rates, with growth partially offset by an expected decline in sales of in-center hemodialysis products.
- The adjusted tax rate for the quarter was higher than expected at 23.9%, compared to 17.8% in the prior year period.
- The company faces ongoing challenges with foreign exchange impacts and higher-than-anticipated tax rates.
- Baxter's guidance for the fourth quarter of 2024 implies revenue growth below 1%, primarily due to a slowdown in the compounding business and potential impacts from value-based procurement in Kidney Care.
Good morning, ladies and gentlemen, and welcome to Baxter International's Second Quarter 2024 earnings conference call. Your lines will remain in a listen-only mode until the question-and-answer segment of today's call. (Operator Instructions) As a reminder, this call is being recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcast without Baxter's permission. If you have any objections, please disconnect at this time. I would now like to turn the call over to Ms. Clare Trachtman, Senior Vice President, Chief Investor Relations Officer at Baxter International. Ms. Trachtman, you may begin.
Good morning, and welcome to our second quarter 2024 earnings conference call. Joining me today are Joe Almeida, Baxter's Chairman and Chief Executive Officer, and Joel Grade, Baxter's Executive Vice President and Chief Financial Officer. On the call this morning, we will be discussing Baxter's Second Quarter 2024 results, along with our financial
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