Baxter International Inc. on Thursday reported higher second-quarter net profits, driven by improved demand for its blood therapy products that contributed to a 7 percent increase in overall sales.
The Deerfield, Illinois-based company, which also makes hospital products and kidney dialysis equipment, said it raised its outlook for the rest of the year, based on the strength in the first half.
In the latest quarter, net earnings were $431 million, or 65 cents per diluted share, compared with $309 million, or 47 cents per share, in the year-ago quarter.
Excluding special items, second-quarter earnings were $477 million, or 72 cents per share.
On that basis, the consensus estimate on Wall Street was for a profit of 67 cents, according to Reuters Estimates.
Quarterly revenue rose to $2.83 billion from $2.65 billion a year ago, led by sales in its Bioscience business, which sells blood therapy products.
Sales outside the United States jumped 12 percent, or 5 percent excluding the impact of foreign exchange, while sales inside the United States increased just 1 percent during the quarter.
Improved margins, lower interest and income tax expenses also contributed to higher profitability, the company said.
For the full year, the company raised its outlook to $2.65 to $2.70, excluding items, from $2.60 to $2.65 and reaffirmed its sales forecast of a 4 percent to 5 percent increase, excluding the impact of foreign exchange.
Third-quarter earnings per diluted share were seen at 64 to 66 cents, before items, on sales growth of 3 percent to 4 percent, excluding the impact of foreign exchange.
The forecasts reflect the divestiture of its Transfusion Therapies business, completed in the first quarter, and excludes the recommercialization of its Colleague infusion pump, which may occur before the end of the year.
Late on Wednesday, Baxter said the U.S. Food and Drug Administration classified its field corrective action regarding recently manufactured or upgraded Colleague triple channel infusion pumps as a Class I Recall, the most serious type of recall.
Baxter characterized the problem as a processing anomaly and said it has received reports of 16 serious injuries that are associated with the issue.
Morgan Stanley analyst Glenn Reicin noted that the triple channel pumps represent only a small portion of units in the field, saying the setback was not terribly material.
Baxter's shares closed at $58.60 on the New York Stock Exchange on Wednesday, near a five-year high.