Baxter International Inc. (BAX) announced that its third-quarter net income attributable to the company grew 12% to $530 million from $472 million in the third quarter of 2008. Earnings per share for the quarter increased 18% to $0.87 from $0.74 in the prior-year period.
The third quarter results include after-tax special charges totaling $69 million or $0.11 per share primarily for fixed asset write-offs related to the discontinuation of the company's SOLOMIX drug delivery system in development, and planned retirement costs associated with the SYNDEO PCA Syringe Pump. The company recorded after-tax special charges in the third quarter of 2008 totaling $91 million or $0.14 per share.
On an adjusted basis, excluding special charges in both years, Baxter's net income increased 6% to $599 million from $563 million in the third quarter last year. Adjusted earnings per share were $0.98, up 11% from $0.88 per share in the prior-year period. Analysts polled by Thomson Reuters expected the company to report earnings of $0.97 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter were $3.15 billion, compared to $3.15 billion in the prior year quarter. Ten analysts had consensus revenue estimate of $3.19 billion for the quarter.
For the fourth quarter of 2009, Baxter expects sales growth, excluding the impact of foreign currency, of 6% to 8%. Based on the company's outlook for foreign exchange rates, the company expects reported sales including the impact of foreign currency to increase 8% to 10% over the prior-year period. Baxter expects earnings per share to be in the range $1.02 to $1.04, before any special items, in the fourth quarter.
Analysts expect the company to report earnings of $1.04 per share on revenues of $3.33 billion for the fourth quarter.
The company raised its full year 2009 earnings, before any special items, outlook to a range of $3.79 - $3.81 per share, from the prior range of $3.76 - $3.80 per share. Analysts expect the company to report earnings of $3.80 per share for the full year 2009.
For the full year 2009, Baxter expects sales growth, excluding the impact of foreign currency, to increase 7% to 8%. Based on the company's outlook for foreign exchange rates, Baxter now expects reported sales growth to increase approximately 0% to 1%. Analysts expect the company to report revenues of $12.48 billion for the full year.
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