* Q1 EPS $1.00 vs $1.04 a year ago
* Adjusted EPS $1.05 vs analyst view of $1.04
* Strength in Bioscience division offset weakness in medical
* Shares down 0.5 pct
By Debra Sherman
April 18 Baxter International Inc on
Thursday said quarterly net earnings fell slightly, as expected,
on acquisition-related costs.
The maker of kidney dialysis equipment and blood therapy
products affirmed its outlook for the full year, calling for
earnings per share of $4.60 to $4.70, before items, with sales
growing about 10 percent, excluding the impact of foreign
exchange translations. The outlook includes the impact of its
acquisition of Gambro AB, a developer of dialysis products and
therapies, which is expected to close at the end of the second
First-quarter net earnings were $552 million, or $1.00 per
share, compared with $588 million, or $1.04 per share, in the
Results include after-tax special items totaling $29
million, or 5 cents per share, primarily for costs associated
with the Gambro acquisition. The latest quarter also included a
net after-tax benefit from special items totaling $19 million of
income, or 3 cents per share, for payments pertaining to
business development transactions.
Excluding items, adjusted earnings per share were $1.05,
which was a penny above what Wall Street analysts were expecting
on average, according to Thomson Reuters I/B/E/S.
First-quarter sales rose to $3.45 billion from $3.39 billion
a year ago.
Strength in higher-margin BioScience product lines,
including Hemophilia and BioSurgery, was offset by a shortfall
in Medical Products, which includes medical infusion pumps.
"We are encouraged by the continued strength in U.S.
hemophilia, and the relative stability in BioTherapeutics,
however we expect anticipation around the forthcoming results of
the company's Alzheimer's trial to continue to drive the stock,"
Matt Miksic, an analyst with Piper Jaffray & Co, wrote in a
research note. Miksic has an "overweight" rating on the stock.
During a conference call, Baxter executives told analysts
they expected to finish a late-stage trial testing its drug
Gammagard, an immune globulin that is already approved to treat
primary immune deficiency, on Alzheimer's patients. Smaller
trials have suggested that the drug slows progression of the
Baxter shares were off 0.5 percent at $69.91 on Thursday
morning on the New York Stock Exchange, tracking weakness in the