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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.
Baxter
Baxter
Baxter Revenue by Segment
Baxter Revenue by Geographic Location
Revenue by Segment
Pharmaceuticals Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com 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