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Baxter tops quarterly estimates on strong demand for medical devices
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Baxter tops quarterly estimates on strong demand for medical devices
May 25, 2025 11:20 PM

May 1 (Reuters) -

Medical products maker Baxter International ( BAX ) on

Thursday beat Wall Street estimates for first-quarter revenue

and profit, helped by the robust demand for its intravenous (IV)

solutions and patient-monitoring systems.

Shares of the Deerfield, Illinois-based company rose

4.3% in premarket trading following the results.

Boosted by a surge in non-essential surgical procedures,

manufacturers such as Baxter expect the rise in the sale of

medical devices to counter the impact of U.S. President Donald

Trump's levies.

"While today's global macroeconomic factors are creating a

greater degree of uncertainty in the market, we remain confident

in our overarching trajectory," interim CEO Brent Shafer said.

First-quarter sales at Baxter's medical products and

therapies unit, which includes IV solutions, rose 3% to $1.26

billion from a year ago.

Sales at its healthcare systems and technologies segment,

which sells patient-monitoring systems and respiratory devices,

among others, rose 6% to $704 million in the three months ended

March 31.

The company incurred $98 million in Hurricane Helene-related

costs during the first quarter.

Baxter's North Cove facility in North Carolina, which

supplies 60% of IV fluids and peritoneal dialysis solutions in

the U.S., was temporarily shut down last year due to flooding

caused by the hurricane.

The company had said in November its first-quarter results

will be marginally affected by these disruptions as its

one-liter IV bags constitute almost half of the IV production at

the North Carolina facility.

The company earned 55 cents per share on an adjusted basis

in the first quarter, surpassing analysts' average estimate of

48 cents, according to data compiled by LSEG.

Its quarterly revenue came in at $2.63 billion, beating

expectations of $2.59 billion.

Baxter raised the lower end of its 2025 profit forecast

range to $2.47 to $2.55 per share, compared with a prior view of

$2.45 to $2.55.

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