April 30 (Reuters) – Baxter on Thursday beat Wall Street estimates for first-quarter profit and revenue, helped by robust sales in its medical products and therapies unit.
Shares of the Deerfield-Illinois based company rose over 9%in premarket trading following the results.
“Financial results for the quarter overall were in line with our expectations, and we are making progress to stabilize the business,” said Baxter CEO Andrew Hider.
On an adjusted basis, Baxter earned a profit of 36 cents per share for the quarter ended March 31, above analysts’ estimate of 31 cents per share, according to LSEG data.
Quarterly revenue came in at $2.70 billion, ahead of estimates of $2.62 billion.
First-quarter sales at the company’s largest business, medical products and therapies unit, which includes IV solutions, rose 2% to $1.29 billion from a year ago and surpassing estimates of $1.23 billion.
Baxter, however, said the division was held back by lower infusion pump sales after it disclosed a shipment and installation hold on its Novum IQ Large Volume Pump.
Tariffs and higher manufacturing costs weighed on earnings in the quarter, the company said, without specifying a dollar figure for the full-year tariff impact.
“We expect it’s too early in the turnaround story for investors to be swayed more bullish or bearish by one okay quarter,” said J.P.Morgan analyst Robbie Marcus.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Shailesh Kuber)
