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Mar 31, 2023
Baxter Q1 2023 Earnings Report
Baxter's Q1 2023 performance reflected sustained demand for medically essential products amidst a stabilizing macroeconomic climate and healthcare marketplace.
Key Takeaways
Baxter's first-quarter 2023 results showed a worldwide sales decrease of 2% on a reported basis, totaling $3.65 billion, but an increase of 2% on a constant currency basis. U.S. GAAP earnings per share (EPS) totaled $0.09, while adjusted EPS totaled $0.59. The company is advancing its strategic transformation initiatives, including a new operating model and the proposed spinoff of its Kidney Care segment.
Worldwide sales totaled approximately $3.65 billion, a decrease of 2% on a reported basis and an increase of 2% on a constant currency basis.
U.S. sales totaled $1.73 billion, decreasing 1% on a reported basis.
Net income attributable to Baxter was $44 million, or $0.09 per diluted share, a decline of 36% on a U.S. GAAP basis.
Adjusted net income attributable to Baxter totaled $297 million, or $0.59 per diluted share, a 37% decrease.
Baxter
Baxter
Baxter Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Baxter expects full-year 2023 sales growth of 1% to 2% on a reported basis and approximately 1% on a constant currency basis. The company anticipates U.S. GAAP earnings of $1.16 to $1.31 per diluted share and adjusted earnings of $2.85 to $3.00 per diluted share. For the second quarter of 2023, sales growth is expected to be approximately 1% to 2% on a reported basis and 2% to 3% on a constant currency basis, with U.S. GAAP earnings of $0.18 to $0.20 per diluted share and adjusted earnings of $0.59 to $0.61 per diluted share.
Positive Outlook
- Full-year 2023 sales growth of 1% to 2% on a reported basis is expected.
- Constant currency sales growth for full-year 2023 is expected to be approximately 1%.
- Full-year U.S. GAAP earnings are projected to be $1.16 to $1.31 per diluted share.
- Adjusted earnings for full-year 2023 are expected to be $2.85 to $3.00 per diluted share.
- Second-quarter sales growth of approximately 1% to 2% on a reported basis is anticipated.
Challenges Ahead
- Second-quarter U.S. GAAP earnings are expected to be $0.18 to $0.20 per diluted share.
- Adjusted earnings for the second quarter are projected to be $0.59 to $0.61 per diluted share.
- The company's outlook does not reflect the potential impact of future business or asset acquisitions or dispositions.
- The company's outlook does not reflect the potential impact of goodwill or intangible asset impairments
- The company's outlook does not reflect the potential impact of restructuring actions
Revenue & Expenses
Visualization of income flow from segment revenue to net income