Baxter raises annual profit forecast on strong demand for medical devices

(Reuters) - Medical device maker Baxter International raised its annual profit forecast and beat quarterly estimates on Thursday, banking on strong demand for its infusion pumps and dialysis products.

Investor expectations around the performance of medical device makers have been heightened since last November due to higher demand for procedures, especially among older adults, that were delayed during the COVID-19 pandemic.

Larger peers Stryker and Boston Scientific also beat profit estimates during their quarterly results, as industry bellwether Johnson & Johnson expects medtech-related procedures to remain elevated in 2024.

Baxter said the separation of its kidney care segment, which was proposed in January last year, is expected to take place in the second half of 2024.

The company expects full-year adjusted profit between $2.88 and $2.98 per share, compared with its previous expectation between $2.85 and $2.95 per share. Analysts estimated a profit of $2.90 per share, according to LSEG data.

The first-quarter revenue rose 2% to $3.59 billion from the previous year, beating estimates of $3.55 billion.

The medical products and therapies segment, which makes IV solutions and infusion pumps, recorded quarterly sales of $1.23 billion, up 6%, compared to analysts' average estimates of $1.16 billion.

The kidney care segment, through which it sells dialysis products, garnered quarterly sales of $1.1 billion, slightly above analysts' estimates of $1.09 billion.

On an adjusted basis, the company earned 65 cents per share, compared with estimates of 61 cents per share.

(Reporting by Christy Santhosh in Bengaluru; Editing by Vijay Kishore)