(Reuters) – Baxter International on Thursday forecast 2025 profit above Wall Street estimates banking on strong sales of its medical devices, sending the company’s shares up 7% in premarket trade.
Baxter expects 2025 adjusted profit between $2.45 and $2.55 per share, with its midpoint above analysts’ average estimate of $2.47 per share, according to data compiled by LSEG.
Investors have high expectations from medical device makers as they continue to benefit from healthy demand for non-urgent surgeries, especially among older Americans.
The company said earlier this week that it had returned to pre-hurricane production levels, following a January announcement that it had restarted production at all 10 manufacturing lines of its facility.
Baxter’s North Cove facility in North Carolina was temporarily closed due to flooding caused by Hurricane Helene in late September. The plant makes 60% of the United States’ supply of IV fluids and peritoneal dialysis (PD) solutions, according to the American Hospital Association.
Baxter saw a lesser negative impact from Hurricane Helene during the reported quarter than previously anticipated.
Revenue for the fourth quarter ended December 31 came in at $2.75 billion, beating estimates of $2.67 billion.
Excluding items, the company earned 58 cents per share, compared with estimates of 52 cents per share.
(Reporting by Siddhi Mahatole and Puyaan Singh in Bengaluru; Editing by Maju Samuel and Shailesh Kuber)
Comments