Benzinga - Baxter International Inc (NYSE: BAX) posted Q1 revenue of $3.65 billion, which beat the consensus of $3.60 billion, down 2% Y/Y on a reported basis and up 2% on a constant currency, exceeding the company's previously issued guidance the company said.
Adjusted EPS of $0.59, down 37% Y/Y, surpassed the consensus of $0.49 and the management consensus of $0.46-$0.50.
Sales growth in the quarter was primarily driven by strength in Advanced Surgery, Front Line Care, Pharmaceuticals, and Renal Care, partially offset by expected declines in Acute Therapies, BioPharma Solutions, and Patient Support Systems, which reflected a slowdown in capital spending for certain healthcare products.
The company said that sustained demand for the company's medically essential products combined with a stabilizing macroeconomic environment and an improvement in recent supply chain challenges has helped boost quarterly sales.
It compares with Baxter's comments from the last quarter's results when it flagged pressure from inflation and higher inventory costs to continue this year and had reduced up to 5% of its global workforce.
Baxter said that a spin-off of the kidney care segment is expected to occur by July 2024 or earlier.
Outlook: Baxter expects FY23 adjusted EPS of $2.85-$3.00 vs. the prior range of $2.75-$2.95 and a consensus of $2.86.
For Q2 FY23, the company sees adjusted EPS Of $0.59-$0.61 compared to the consensus of $0.60.
Price Action: BAX shares are down 1.63% at $45.63 on the last check Thursday.
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