•
Mar 31, 2022

Baxter Q1 2022 Earnings Report

Reported a strong first quarter, driven by the acquisition of Hillrom and growth in key business segments.

Key Takeaways

Baxter's first-quarter 2022 results showed a 26% increase in revenue to $3.7 billion, driven by the Hillrom acquisition and growth in Medication Delivery and BioPharma Solutions. U.S. GAAP EPS was $0.14, while adjusted EPS reached $0.93. The company is navigating challenges including COVID-19 impacts, geopolitical unrest, and inflationary pressures.

First-quarter revenue increased 26% to $3.7 billion, with a 3% operational growth.

U.S. sales increased 49% on a reported basis and 3% operationally, totaling $1.76 billion.

U.S. GAAP EPS was $0.14, and adjusted EPS was $0.93, a 22% increase.

Hillrom businesses contributed approximately $755 million to first-quarter performance.

Total Revenue
$3.71B
Previous year: $2.95B
+25.8%
EPS
$0.93
Previous year: $0.76
+22.4%
Gross Profit
$1.35B
Previous year: $1.15B
+17.7%
Cash and Equivalents
$2.29B
Previous year: $3.18B
-27.9%
Total Assets
$32.7B
Previous year: $19.5B
+68.1%

Baxter

Baxter

Baxter Revenue by Geographic Location

Forward Guidance

Baxter expects full-year 2022 sales growth of 23% to 24% on a reported basis, and adjusted EPS of $4.12 to $4.20. For the second quarter, the company anticipates sales growth of approximately 26% and adjusted EPS of $0.86 to $0.89.

Positive Outlook

  • Full-year sales growth of 23% to 24% on a reported basis is expected.
  • Constant currency sales growth for the full year is projected at 25% to 26%.
  • Adjusted EPS for the full year is anticipated to be $4.12 to $4.20.
  • Second-quarter sales growth is expected to be approximately 26% on a reported basis.
  • Second-quarter adjusted EPS is projected to be $0.86 to $0.89.

Challenges Ahead

  • U.S. GAAP earnings are expected to be $2.35 to $2.43 per diluted share for the full year.
  • The financial outlook reflects the impact from higher oil prices.
  • Ongoing supply chain challenges are causing increased inflationary pressures.
  • The outlook excludes any contribution from the Novum IQ infusion system.
  • Second-quarter U.S. GAAP earnings are expected to be $0.48 to $0.51 per diluted share.

Revenue & Expenses

Visualization of income flow from segment revenue to net income