Baxter International Lowers Profit Forecast After Hurricane

Baxter International reported quarterly earnings of $0.80 per share, exceeding estimates, despite revenues of $2.7 billion falling significantly short of expectations due to a hurricane's impact on operations. The company has revised its fourth-quarter outlook, anticipating a $200 million revenue hit from Hurricane Helene, which has disrupted its IV solutions facility in North Carolina, responsible for a large portion of the U.S. supply. Baxter now expects full-year adjusted profit to be between $2.90 and $2.94 per share, a decrease from previous forecasts. Despite outperforming in terms of earnings surprises, Baxter's stock has underperformed the market this year, down 6.8%. The company continues to address production challenges while aiming to restore its IV solutions supply to near full capacity by the end of 2024. Investors are closely watching management's commentary on future earnings expectations amid these challenges.