BAX Stock Gains Following Q1 Earnings Beat Estimates, Revenues Up Y/Y

Core Viewpoint - Baxter International Inc. reported strong first-quarter 2025 results, with adjusted EPS of 55 cents, exceeding estimates and showing significant year-over-year growth [1][14]. Financial Performance - Adjusted EPS of 55 cents beat the Zacks Consensus Estimate of 48 cents by 14.6% and improved 52.8% from the prior year [1] - Revenues from continued operations reached $2.63 billion, up 5.4% year-over-year, surpassing the Zacks Consensus Estimate by 2.3% [2] - Adjusted operating income from continuing operations was $285 million, reflecting a 55.7% year-over-year increase, with an adjusted operating margin improvement of 360 basis points to 10.9% [10] Segment Performance - Medical Products & Therapies segment sales totaled $1.26 billion, up 3% year-over-year, driven by strong demand in Infusion Therapies & Technologies [4] - Infusion Therapies and Technologies sales were $994 million, up 3% year-over-year, while Advanced Surgery category sales reached $268 million, up 2% [6] - Healthcare Systems and Technologies segment sales were $704 million, up 6% year-over-year, with strong performance in Patient Support Systems [7] - Pharmaceuticals segment sales were $581 million, up 1% year-over-year, primarily due to growth in specialty injectables [8] Margin Analysis - Adjusted gross profit was $1.09 billion, a 1.7% increase year-over-year, but the adjusted gross margin contracted by 160 basis points to 41.8% [9] Future Guidance - For Q2 2025, Baxter anticipates sales growth of 4-5% and adjusted EPS in the range of 59-63 cents [11] - For full-year 2025, continuing operational sales growth is expected to be 7-8%, with adjusted EPS projected between $2.47-$2.55 [12] Strategic Initiatives - Baxter completed its transformation plan with the sale of its Kidney Care business, aiming to redefine healthcare delivery and drive profitable growth [3] - The company introduced the Voalte Linq device to enhance communication in clinical settings, integrating with existing digital solutions [15] - The launch of Hemopatch Sealing Hemostat with room temperature storage is expected to improve surgical efficiency [16]