Baxter Reports Third-Quarter 2024 Results: A Deep Dive into Growth and Transformation

Baxter International Inc. (NYSE:BAX), a global medtech leader, recently reported its third-quarter 2024 financial results, highlighting growth and strategic transformation. The company's total worldwide sales for Q3 2024 were $3.85 billion, including continuing operations sales of $2.70 billion and discontinued operations sales of $1.15 billion. Excluding Q3 2023 BPS sales of $191 million and including sales of Kidney Care in both periods, worldwide Baxter sales grew 4% on both a reported and constant currency basis, in line with the company’s prior guidance.



On a continuing operations basis, Baxter’s sales of $2.70 billion increased 4% on both a constant currency and reported basis, with all segments contributing to this performance. The Medical Products & Therapies segment grew high single digits, driven by strong demand across the portfolio and the successful U.S. launch of the Novum IQ large volume infusion pump with Dose IQ Safety Software. The Healthcare Systems & Technologies segment grew low single digits, with strong performance in the U.S. Care & Connectivity Solutions division offsetting declines in other areas.



The pending sale of Baxter's Kidney Care business had a significant impact on the company's third-quarter 2024 sales and earnings. The Kidney Care segment, now reported as discontinued operations, contributed $1.15 billion in sales, a mid-single-digit increase year-over-year, driven by positive demand and pricing for acute therapies and peritoneal dialysis products. However, excluding Kidney Care sales, total worldwide sales grew 4% on both a reported and constant currency basis, in line with the company's prior guidance.

Baxter's strategic transformation initiatives contributed to its Q3 growth. The company's sales from continuing operations increased 4% on both a reported and constant currency basis, reflecting growth across all segments. Medical Products & Therapies sales grew high single digits, led by the successful U.S. launch of the Novum IQ large volume infusion pump with Dose IQ Safety Software. Healthcare Systems & Technologies sales grew low single digits, with strong performance in the U.S. Care & Connectivity Solutions division.



Hurricane Helene significantly impacted Baxter's North Cove facility in western North Carolina, affecting production and financial results in Q3 2024. The facility's highest-throughput IV solutions manufacturing line has since restarted, indicating progress in recovery efforts. However, the hurricane's aftermath is expected to impact Baxter's near-term financial outlook.

Baxter's third-quarter 2024 earnings showed positive performance compared to previous years and guidance. GAAP diluted EPS from continuing operations were $0.12, while adjusted continuing operations EPS were $0.49. Baxter's earnings demonstrated the company's ability to execute against its strategic transformation.

In conclusion, Baxter's third-quarter 2024 results reflect the company's strategic transformation and growth initiatives. Despite the impact of Hurricane Helene and the pending sale of the Kidney Care business, Baxter's core businesses performed well, and the company remains confident in its outlook and growth trajectory. Investors should continue to monitor Baxter's progress as it focuses on its core businesses and high-growth areas.