Baxter (BAX) Q2 Earnings Beat Estimates, '24 EPS View Raised

Core Insights - Baxter International Inc. reported second-quarter 2024 adjusted EPS of 68 cents, exceeding the Zacks Consensus Estimate of 66 cents by 3% and showing a year-over-year improvement of 23.6% [1] - The company's revenues from continuing operations reached $3.81 billion, reflecting a 3% increase on a reported basis and a 4% increase at constant currency, surpassing the Zacks Consensus Estimate by 1.9% [2] Revenue Details - Revenue growth was driven by positive demand and pricing across various product categories, with shares of Baxter rising 3.9% in pre-market trading following the results [2] - Year-to-date, Baxter's shares have declined by 10.3%, contrasting with the industry's growth of 3.2% and the S&P 500 Index's increase of 9% [2] Segmental Performance - Medical Products & Therapies segment reported total sales of $1.32 billion, up 4% year over year, benefiting from strong demand and pricing, particularly from the Novum IQ infusion pump [3] - Infusion Therapies & Technologies sales were $1.05 billion, up 4% year over year, while Advanced Surgery sales reached $277 million, up 2% [4] - Healthcare Systems and Technologies segment sales totaled $748 million, up 1% year over year, with growth driven by Care & Connectivity Solutions products [5] - Pharmaceuticals segment sales were $602 million, up 9% year over year, primarily due to new product launches and strong demand for Drug Compounding services [6] - Kidney Care segment sales were $1.12 billion, flat year over year but up 3% at constant currency, with plans to spin off this segment into a separate publicly traded company [7] Margin Analysis - Adjusted gross profit was $1.57 billion, a 4.7% increase year over year, with an adjusted gross margin improvement of 70 basis points to 41.2% [8] - Adjusted operating income from continuing operations was $522 million, up 6.7% year over year, with an adjusted operating margin improvement of 50 basis points to 13.7% [8] Future Guidance - For third-quarter 2024, Baxter anticipates sales growth of 3-4% on a reported basis and 4-5% at constant currency, with adjusted EPS expected between 77 cents and 79 cents [9] - For full-year 2024, sales growth is projected at 3% on a reported basis, with adjusted EPS expected in the range of $2.93-$3.01, an increase from previous guidance [10]