Baxter's (BAX) Q4 Earnings Top, Sales Rise on Strong Demand

Core Viewpoint - Baxter International Inc. reported better-than-expected adjusted earnings per share (EPS) for the fourth quarter of 2023, but the stock experienced a decline in pre-market trading despite the positive results [1][2]. Financial Performance - Adjusted EPS from continuing operations was 88 cents, exceeding the Zacks Consensus Estimate of 86 cents by 2.3% and improving 13% year-over-year [1]. - Total revenues from continued operations reached $3.89 billion, reflecting a 4% increase on a reported basis and 3% at constant currency, surpassing the Zacks Consensus Estimate by 2.4% [2]. - For the full year 2023, Baxter recorded total revenues of $14.81 billion, up 2% year-over-year, while adjusted EPS from continuing operations was $2.60, down 14% from the previous year [9]. Segment Performance - The Medical Products & Therapies segment generated sales of $1.32 billion, up 6% year-over-year [4]. - Infusion Therapies and Technologies sales totaled $1.04 billion, increasing by 5% year-over-year, while Advanced Surgery sales reached $278 million, up 7% [5]. - The Healthcare Systems and Technologies segment reported sales of $795 million, an 8% increase year-over-year [6]. - The Pharmaceuticals segment's sales were $596 million, up 8% year-over-year [6]. - The Kidney Care segment saw total sales of $1.16 billion, down 1% year-over-year, with Chronic Therapies sales at $950 million, down 2% [7]. Margin Analysis - Adjusted gross profit for the fourth quarter was $1.63 billion, a 5.7% increase year-over-year, with a gross margin improvement of 80 basis points to 42% [8]. - Adjusted operating income from continuing operations was $449 million, up 13% year-over-year, with an operating margin improvement of 90 basis points to 11.6% [8]. Future Guidance - For Q1 2024, Baxter anticipates sales growth of approximately 1% on a reported basis, with adjusted EPS expected between 59 cents and 62 cents [10]. - For the full year 2024, sales growth is projected to be nearly 2% on a reported basis, with adjusted EPS expected in the range of $2.85 to $2.95 [10].