Baxter hikes 2016 earnings view driven by strong Q1 results
Baxter International (NYSE: BAX) reported better-than-expected first-quarter profits and raised its earnings outlook for 2016.
The company now sees earnings excluding items of $1.59 to $1.67 per share for 2016, against $1.46 to $1.54 forecast earlier. Baxter now expects a 1% rise in full-year sales compared with a 1% drop estimated previously.
Chief Executive José Almeida, said: ”We are off to a strong start in 2016, with first quarter results exceeding our expectations. Our new strategic framework focused on portfolio optimization, operational excellence and capital allocation is driving improved performance throughout the organization and is reflected in our increased financial outlook for the year.”
For the quarter, the company reported income from continuing operations of $3.39 billion million, or $6.13 per share, up versus $134 million, or 24 cents per share, a year ago.
The results for the quarter ended March 31 include an after-tax net gain of about $3.3 billion related to the spinoff of Baxalta Inc in July 2015.
Excluding special items, Baxter reported earnings of 36 cents per share.
Net sales fell about 1% to $2.375 billion in the March quarter.
Baxter is engaged in sales of hospital products including intravenous devices, infusion pumps and surgical equipment. The company also makes renal products.
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