NYSE$BAX
Baxter International Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Baxter's Q2 2023 performance reflected solid demand for its medical products and progress in transformational actions.
Baxter reported a 3% increase in second-quarter revenues on a reported basis and a 4% increase on a constant currency basis, exceeding previously issued guidance. U.S. GAAP EPS was ($0.28), while adjusted EPS was $0.66. The company is progressing with its transformational actions, including the planned spinoff of its Renal Care and Acute Therapies businesses and the divestiture of its BioPharma Solutions business.
- Second-quarter revenues increased 3% on a reported basis and 4% on a constant currency basis, ahead of the company’s previously issued guidance.
- Second-quarter U.S. GAAP earnings (loss) per share (EPS) (including discontinued operations) of ($0.28); adjusted EPS (including discontinued operations) of $0.66.
- Second-quarter U.S. GAAP EPS from continuing operations of ($0.39); adjusted EPS from continuing operations of $0.55.
- Baxter signed a definitive agreement to divest its BioPharma Solutions (BPS) business to Advent International and Warburg Pincus.
Headline financials
Revenue & EPS history
Baxter · Revenue · Quarterly
$3.71B
Revenue by segment
Baxter · $597M total across 2 segments · Q3 2023
- Pharmaceuticals$580M—97.2%
- Other$17M—2.8%
Forward guidance
Baxter provided sales growth and adjusted earnings per share guidance for the third quarter and full year 2023. The guidance considers two scenarios: one where BPS remains part of Baxter through the full year and another where the BPS sale is completed on September 30, 2023.
Tailwinds
- Third-quarter sales growth from continuing operations is expected to be approximately 2% on a reported basis and 1% on a constant currency basis.
- Third-quarter adjusted earnings in aggregate (including discontinued operations) are expected to be $0.78 to $0.80 per diluted share.
- Third-quarter adjusted earnings from continuing operations are expected to be $0.65 to $0.67 per diluted share.
- Full-year 2023 sales growth from continuing operations is expected to be 1% to 2% on a reported basis and approximately 2% on a constant currency basis (assuming BPS remains part of Baxter).
- Full-year 2023 adjusted earnings are expected to increase due to reduced interest expense after debt repayment.
Headwinds
- The ultimate timing of the BPS sale is uncertain.
- If the BPS sale is completed on September 30, 2023, sales growth in the aggregate (including discontinued operations) would be approximately flat to 1% on a reported basis and approximately 1% on a constant currency basis.
- Full-year 2023 adjusted earnings are expected to be negatively impacted by $0.10 per share if the BPS sale is completed, due to the absence of BPS earnings in the fourth quarter.
- Baxter has not provided reconciliations of forward-looking adjusted EPS guidance to GAAP EPS guidance due to the uncertainty and difficulty in predicting the combined impact and timing of potential charges or gains.
- Such items could have a substantial impact on GAAP measures of financial performance.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2023
-0.4%
Avg return
Earnings day
-2.0%
Avg return
5 days after
-0.9%
Avg return
30 days after
47%
34 / 72 earnings
Positive
+18.2%
Q4 2019
Best reaction
-16.0%
Q4 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +6.1% | -0.9% | +11.2% | |
| Q4 2025 | -16.0% | -6.9% | -21.9% | |
| Q3 2025 | -14.4% | -20.0% | -16.4% | |
| Q1 2025 | -1.6% | -4.0% | -2.1% | |
| Q4 2024 | +8.5% | +16.6% | +7.7% | |
| Q3 2024 | -5.0% | -9.5% | -11.8% | |
| Q2 2024 | +5.6% | +7.2% | +12.1% | |
| Q1 2024 | -8.6% | -10.5% | -15.5% | |
| Q4 2023 | +0.4% | +0.6% | +11.1% | |
| Q3 2023 | +3.6% | +4.3% | +11.5% | |
| Q2 2023 | -4.0% | -8.1% | -15.2% | |
| Q1 2023 | +3.5% | +2.0% | -10.4% | |
| Q4 2022 | -10.4% | -12.6% | -16.8% | |
| Q3 2022 | -4.6% | -6.7% | -2.8% | |
| Q2 2022 | -12.2% | -11.9% | -14.4% | |
| Q1 2022 | -0.0% | +1.4% | +7.2% | |
| Q4 2021 | -3.3% | -0.8% | -7.1% | |
| Q3 2021 | -3.6% | -2.0% | -6.9% | |
| Q2 2021 | -5.6% | -6.9% | -9.7% | |
| Q1 2021 | -1.5% | +0.5% | -5.6% | |
| Q4 2020 | +0.0% | -0.4% | +1.0% | |
| Q3 2020 | -0.7% | -1.1% | -2.8% | |
| Q2 2020 | -4.8% | -10.6% | -5.2% | |
| Q1 2020 | -4.0% | -3.0% | -1.6% | |
| Q4 2019 | +18.2% | +5.8% | +26.5% | |
| Q3 2019 | +18.2% | +5.8% | +26.5% | |
| Q2 2019 | +1.5% | +2.7% | +1.3% | |
| Q1 2019 | -0.1% | +0.0% | -1.5% | |
| Q4 2018 | +0.6% | +0.5% | +5.7% | |
| Q3 2018 | -8.1% | -9.0% | -0.2% | |
| Q2 2018 | -6.3% | -5.3% | -5.4% | |
| Q1 2018 | +5.5% | +5.5% | +9.0% | |
| Q4 2017 | -4.8% | -7.4% | -8.0% | |
| Q3 2017 | +0.9% | +0.3% | -0.4% | |
| Q2 2017 | -2.8% | -2.6% | -0.9% | |
| Q1 2017 | +4.2% | +4.5% | +10.2% | |
| Q4 2016 | +0.5% | +0.9% | +6.3% | |
| Q3 2016 | -2.1% | -2.6% | -3.9% | |
| Q2 2016 | +4.8% | +4.2% | +2.2% | |
| Q1 2016 | +1.3% | — | — | |
| Q4 2015 | +2.6% | — | — | |
| Q3 2015 | +3.7% | — | — | |
| Q2 2015 | +5.0% | — | — | |
| Q1 2015 | +1.1% | — | — | |
| Q4 2014 | +0.2% | — | — | |
| Q3 2014 | -1.6% | — | — | |
| Q2 2014 | -0.1% | — | — | |
| Q1 2014 | -0.4% | — | — | |
| Q4 2013 | -3.0% | — | — | |
| Q3 2013 | -2.3% | — | — | |
| Q2 2013 | +1.3% | — | — | |
| Q1 2013 | -1.6% | — | — | |
| Q4 2012 | +2.1% | — | — | |
| Q3 2012 | +0.0% | — | — | |
| Q2 2012 | +0.1% | — | — | |
| Q1 2012 | -0.4% | — | — | |
| Q4 2011 | +1.8% | — | — | |
| Q3 2011 | +2.8% | — | — | |
| Q2 2011 | -2.7% | — | — | |
| Q1 2011 | +1.7% | — | — | |
| Q4 2007 | -1.2% | — | — | |
| Q4 2010 | -1.2% | — | — | |
| Q3 2010 | +1.2% | — | — | |
| Q2 2010 | +0.3% | — | — | |
| Q1 2009 | +0.9% | — | — | |
| Q1 2010 | -0.8% | — | — | |
| Q4 2009 | -0.3% | — | — | |
| Q3 2008 | -0.8% | — | — | |
| Q3 2009 | -0.8% | — | — | |
| Q2 2008 | +2.2% | — | — | |
| Q2 2009 | +2.2% | — | — | |
| Q4 2008 | +2.2% | — | — |
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