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Sep 30, 2023

Baxter Q3 2023 Earnings Report

Baxter's Q3 2023 performance reflected strategic execution and solid financial results, driven by new product launches and operational efficiencies.

Key Takeaways

Baxter reported a 3% increase in worldwide sales from continuing operations, totaling $3.71 billion. U.S. GAAP EPS from continuing operations was $0.09, while adjusted EPS from continuing operations reached $0.68, exceeding previous guidance. The company completed the divestiture of its BioPharma Solutions (BPS) business and is progressing with the planned spinoff of its Kidney Care segment.

Third-quarter revenue from continuing operations increased 3% on a reported basis and 2% on a constant currency basis, surpassing the company's guidance.

U.S. GAAP EPS from continuing operations was $0.09, with adjusted EPS from continuing operations at $0.68, exceeding guidance.

Baxter is now reporting performance according to four verticalized business segments, reflecting the strategic realignment announced in January 2023.

The divestiture of the BioPharma Solutions (BPS) business was completed.

Total Revenue
$3.71B
Previous year: $3.77B
-1.7%
EPS
$0.82
Previous year: $0.82
+0.0%
Gross Profit
$1.12B
Previous year: $1.13B
-1.4%
Cash and Equivalents
$5.79B
Previous year: $1.6B
+261.8%
Free Cash Flow
$191M
Total Assets
$30.7B
Previous year: $28B
+9.6%

Baxter

Baxter

Baxter Revenue by Geographic Location

Forward Guidance

Baxter provided its financial outlook for the fourth quarter and full year 2023.

Positive Outlook

  • The company expects sales growth from continuing operations of 1% to 2% on a reported basis for both the fourth quarter and full year 2023.
  • The company expects sales growth from continuing operations of approximately 1% on a constant currency basis for the fourth quarter 2023.
  • The company expects sales growth from continuing operations of approximately 2% on a constant currency basis for the full year 2023.
  • The company expects adjusted earnings from continuing operations, before special items, of $0.85 to $0.88 per share for the fourth quarter 2023.
  • The company expects adjusted earnings from continuing operations, before special items, of $2.57 to $2.60 per share for the full year 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income