Baxter Reports Strong Medical Devices Sales In Q1, Lifts 2025 Guidance, Stock Jumps

Core Viewpoint - Baxter International Inc. reported strong first-quarter 2025 results, exceeding both management guidance and Wall Street estimates for adjusted EPS and sales growth [1][2]. Financial Performance - Adjusted EPS for Q1 2025 was 62 cents, surpassing management's guidance of 47 to 50 cents and Wall Street's estimate of 48 cents [1]. - Total sales reached $2.63 billion, reflecting a 5% year-over-year increase, which also exceeded the consensus estimate of $2.59 billion [1][2]. - The company raised its 2025 adjusted EPS guidance to a range of $2.47-$2.55, compared to the previous guidance of $2.45-$2.55, with sales growth expectations adjusted to 7%-8% from 5%-6% [3]. Segment Performance - Medical Products & Therapies sales increased by 3% to $1.26 billion, with a 6% increase on a constant currency basis, driven by strong demand for IV infusion pumps and nutrition therapies in the U.S. [3]. - Healthcare Systems & Technologies sales totaled approximately $704 million, up 6% on both a reported and operational basis, fueled by strong U.S. sales in Patient Support Systems [3]. - Pharmaceutical sales reached $581 million, reflecting a 1% increase on a reported basis and a 3% increase operationally, driven by mid-single-digit growth in specialty injectables [3]. Future Guidance - For Q2 2025, Baxter expects adjusted EPS in the range of 59 to 63 cents, with a consensus estimate of 61 cents, and sales growth projected at 4%-5% on a reported basis [4].