Baxter International Inc. forecast higher earnings and sales this year despite a drop in first-quarter profit after being squeezed by one-time items including business optimization charges.
The medical products company reported net income of $298 million for the quarter, down from $332 million a year earlier, and a decline in earnings per share to 58 cents from 64 cents. The quarter included items totaling $88 million, which it said primarily related to intangible asset amortization, business optimization charges, and a proposed settlement of shareholder litigation following an investigation of foreign exchange gains and losses associated with certain intra-company transactions.
On an adjusted basis, Baxter's earnings were 76 cents a share, topping the company's earlier guidance range of 63 cents to 65 cents.
First-quarter sales rose to $2.95 billion from $2.8 billion, as international sales more than offset weakness in the U.S.
For the full year, Baxter forecast earnings of $2.85 to $2.93 a share, which would mark growth on the $2.13 recorded for 2020, and said it expects sales growth of 8% to 9%. On an adjusted basis, it anticipates earnings of $3.47 to $3.55 a share.
Analysts polled by FactSet had penciled in earnings of $3.40 a share and sales of $12.53 billion, up from $11.67 billion reported for 2020.
Sales growth for the second quarter is expected to be 14% to 15%, while earnings are forecast at 54 cents to 57 cents, or 72 cents to 75 cents before special items, the company said.
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