Baxter beats quarterly estimates, monitors effect from Middle East conflict

By Kamal Choudhury

April 30 (Reuters) – Baxter on Thursday stuck to its annual forecast after it beat Wall Street estimates for first-quarter results, and said it is closely monitoring the conflict in the Middle East and rising oil prices, sending its shares 5% higher.

Baxter said its Middle East exposure accounts for less than 2% of total revenue.

“We continue to monitor the direct and broader macroeconomic effects of higher oil prices and conflict in the Middle East,” said CEO Andrew Hider.

He said the situation remains fluid, adding that any shift in conditions would not be specific to Baxter. “We are prepared to navigate any unforeseen dynamic with rigor and agility.”

“Our exposure to fuel today is less than half of what it was historically, given the divestiture of the kidney business,” he added.

Evercore ISI analyst Vijay Kumar said a steady print by Baxter and forecast reiteration should provide some relief given nervousness around Middle East and inflation risks.

“If oil stays flat as it is today, we do see this as something we can manage and mitigate and will not have a material impact in 2026,” CEO Hider said.

Baxter reported quarterly results that topped expectations on strong demand for medical devices.

“Following a series of misses and guide-downs last year, many of which came as surprises, we believe today’s delivery and reiterated guidance will be welcomed by investors,” said Citi analyst Joanne Wuensch.

Quarterly revenue came in at $2.70 billion, ahead of estimates of $2.62 billion.

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.

Baxter reiterated its full-year adjusted earnings forecast of $1.85 to $2.05 per share.

(Reporting by Kamal Choudhury in Bengaluru; Editing by Shailesh Kuber)