(Reuters) -Baxter International cut its 2025 profit forecast on Thursday, while quarterly earnings missed analysts’ estimates due to the lingering effect of Hurricane Helene, which damaged a key manufacturing facility and reduced demand for IV solutions.
Shares of the medical products maker fell about 11% in premarket trading.
Baxter now expects 2025 adjusted profit between $2.42 and $2.52 per share, down from its prior forecast of $2.47 to $2.55 per share. Analysts had expected $2.52 per share.
The company lowered its forecast due to “potential downside risks” primarily affecting its medical products and therapies segment, following stagnant sales in the unit for the quarter.
Hurricane Helene damaged Baxter’s North Cove, North Carolina manufacturing site, affecting IV solution production and prompting hospitals to conserve fluids due to supply disruption.
The hurricane also resulted in additional costs for remediation, air freight and other expenses for the company.
“Softness in demand for IV solutions due to fluid conservation efforts enacted post Hurricane Helene partially offset the segment’s growth in the quarter,” the company said.
Baxter said it has fully restocked IV solutions and lifted all supply limits for products made at its North Carolina facility.
Its pharmaceuticals business also struggled, with injectable drug sales declining 1% amid difficult comparison with the prior year due to “timing of a government order”, while anesthesia sales fell by low double digits globally.
Baxter’s medical products and therapies unit posted quarterly sales of $1.32 billion, while its pharmaceuticals unit achieved $612 million in sales.
The company earned 59 cents per share on an adjusted basis in the quarter, compared with estimates of 61 cents.
Revenue came in at $2.81 billion, just shy of expectations of $2.82 billion.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Vijay Kishore)
Comments