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Baxter
🇺🇸 NYSE:BAX
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Jun 30, 2020

Baxter Q2 2020 Earnings Report

Reported a decrease in second-quarter revenue and earnings per share due to the impact of COVID-19, while acute therapies delivered strong growth.

Key Takeaways

Baxter's second-quarter revenue totaled $2.7 billion, a decrease of 4% on a reported basis. U.S. GAAP EPS was $0.48, a decline of 20%; adjusted EPS was $0.64, a decline of 24%. The company expects full-year 2020 reported sales growth between -1% to +1% and U.S. GAAP EPS of $2.40 to $2.50.

Second-quarter revenue decreased 4% on a reported basis, 1% on a constant currency basis, and 2% on an operational basis.

Second-quarter U.S. GAAP earnings per share (EPS) declined 20%; adjusted EPS declined 24%.

Acute Therapies delivered growth on both a reported and constant currency basis of over 40% due to increased product demand related to COVID-19.

Baxter expects full-year 2020 reported sales growth between -1% to +1%; constant currency and operational sales growth of flat to up low single digits.

Total Revenue
$2.72B
Previous year: $2.84B
-4.3%
EPS
$0.64
Previous year: $0.89
-28.1%
Gross Profit
$1.04B
Previous year: $1.16B
-10.4%
Cash and Equivalents
$4.09B
Previous year: $2.93B
+39.2%
Total Assets
$19.5B
Previous year: $17.5B
+11.2%

Baxter

Baxter

Baxter Revenue by Geographic Location

Forward Guidance

Baxter expects full-year 2020 sales growth compared to the prior-year period to be between -1% to 1% on a reported basis and to be flat to up low single digits on both a constant currency and operational basis. The company expects U.S. GAAP earnings of $2.40 to $2.50 per share and adjusted earnings, before special items, of $3.00 to $3.10 per share.

Positive Outlook

  • Expects full-year 2020 sales growth between -1% to 1% on a reported basis.
  • Expects constant currency and operational sales growth of flat to up low single digits.
  • Expects U.S. GAAP earnings of $2.40 to $2.50 per share.
  • Expects adjusted earnings, before special items, of $3.00 to $3.10 per share.
  • Assumes a sequential improvement on a quarterly basis in both hospital admissions and surgical volumes, although still below prior-year levels.

Challenges Ahead

  • Sales growth is expected to be between -1% to 1% on a reported basis.
  • Hospital admissions and surgical volumes are expected to remain below prior-year levels.
  • Second-quarter revenue decreased 4% on a reported basis.
  • Second-quarter U.S. GAAP earnings per share (EPS) declined 20%; adjusted EPS declined 24%.
  • Lower rates of hospital admissions and declines of elective surgeries negatively impacted Medication Delivery, Pharmaceuticals, and Advanced Surgery businesses.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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