By Padmanabhan Ananthan (Reuters) -Baxter International on Thursday trimmed its forecasts for adjusted annual profit and revenue growth, after missing third-quarter revenue estimates due to persistent impact from hurricane-related disruptions at a key manufacturing unit. Shares of the medical products maker plunged to a more than 20-year low following the results. Despite an uptick in […]
Health
Baxter cuts annual profit forecast on persistent hurricane impact; shares hit 20-year low
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By Padmanabhan Ananthan
(Reuters) -Baxter International on Thursday trimmed its forecasts for adjusted annual profit and revenue growth, after missing third-quarter revenue estimates due to persistent impact from hurricane-related disruptions at a key manufacturing unit.
Shares of the medical products maker plunged to a more than 20-year low following the results.
Despite an uptick in non-essential medical procedures during the quarter, the company expects adjusted earnings of $2.35 to $2.40 per share, down from its prior view of $2.42 and $2.52 per share.
It lowered its annual sales growth forecast to a range of 4% to 5% from the previous projection of 6% to 7% on a reported basis.
Baxter has been pressured by lingering hurricane-related disruptions at the North Cove facility, which was temporarily shut last year after flooding from Hurricane Helene.
The facility supplies a large share of U.S. IV fluids and peritoneal dialysis solutions.
“Within IV solutions, U.S. demand remains below pre-Hurricane Helene levels…some level of fluid conservation is likely to remain in 2026,” CFO Joel Grade said in a conference call.
“We expect sales across our infusion pump portfolio to remain under pressure as we work with our customers to…lift the shipment and installation hold on Novum.”
Baxter had previously halted shipments for the Novum IQ Large Volume Pump after reports of two deaths and multiple injuries.
“Investors are left with the question or not just whether 2026 needs to move lower, but how low is low enough,” said J.P. Morgan analyst Robbie Marcus, citing Baxter’s fourth‑quarter forecast for adjusted profit.
Adjusted earnings for the third quarter came in at 69 cents per share, surpassing analysts’ average estimate of 60 cents, according to data compiled by LSEG.
Its quarterly revenue came in at $2.84 billion, missing expectations of $2.88 billion.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shreya Biswas)