Baxter Q3 2022 Earnings Report
Key Takeaways
Baxter's third-quarter results were impacted by significant impairment charges of $3.1 billion related to the Hillrom acquisition, reflecting rising interest rates and broad declines in equity valuations. While worldwide sales increased by 17% on a reported basis, U.S. GAAP EPS was ($5.83), with adjusted EPS totaling $0.82.
Third-quarter revenue increased 17% on a reported basis, 23% on a constant currency basis, and rose slightly on an operational basis.
U.S. GAAP earnings (loss) per share (EPS) were ($5.83); Adjusted EPS totaled $0.82.
Results reflect impairment charges of $3.1 billion related to Baxter’s December 2021 Hillrom acquisition.
The company is navigating a challenging macroenvironment and has taken decisive action to mitigate ongoing macroeconomic headwinds.
Baxter
Baxter
Baxter Revenue by Geographic Location
Forward Guidance
Baxter expects for full-year 2022 sales growth of 17% to 18% on a reported basis, approximately 23% on a constant currency basis and low single digits on an operational basis. For fourth-quarter 2022, the company expects sales growth of mid-to-high single digits on a reported basis, mid-teens on a constant currency basis and approximately flat on an operational basis.
Positive Outlook
- Sales growth of 17% to 18% on a reported basis for full year 2022
- Sales growth of approximately 23% on a constant currency basis for full year 2022
- Low single digits sales growth on an operational basis for full year 2022
- Mid-to-high single digits sales growth on a reported basis for fourth quarter 2022
- Mid-teens sales growth on a constant currency basis for fourth quarter 2022
Challenges Ahead
- Continued impact from supply constraints for electromechanical components
- Foreign exchange pressures
- Increased interest expenses
- Higher effective tax rate
- Approximately flat sales growth on an operational basis for fourth quarter 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income