Baxter updated its fiscal 2017 guidance
Baxter International (BAX) updated its fiscal 2017 guidance during the company’s 3Q17 earnings release on October 25, 2017. The sales growth guidance for fiscal 2017 is expected to be ~4% on a reported basis. The underlying operational sales growth is expected to be in the range of 4%–5%, after adjusting for the impact of strategic product exits, Claris acquisition benefits, and US cyclophosphamide competition.
These estimates assume the negative impact of ~$70 million from Hurricane Maria, Claris sales of ~$57 million, and ~$190 million of US cyclophosphamide sales for fiscal 2017.
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Segment-wise business outlook
For fiscal 2017, Baxter International expects to register Hospital Products business segment sales growth of ~4% on a constant currency basis. The segment’s operational sales growth is estimated to be in the range of 4%–5%.
Notably, the previous sales growth guidance of the company’s Hospital Products segment was higher, at ~4%–5% growth on constant currency basis, and operational sales growth in the range of 5%–6%. The negative impact of Hurricane Maria is expected to contribute to the lost sales. While the IPS (Integrated Pharmacy Solutions) segment sales outlook fell due to the impact of Hurricane Maria, fluid system sales are expected to register strong sales.
Baxter International’s Renal business segment is expected to register 3% constant currency sales growth, while operational sales are expected to be ~4% for fiscal 2017, which would be in line with the company’s previous guidance.
Baxter also increased its full-year cash flow outlook and expects to register ~$1.9 billion in operating cash flows and $1.2 billion in free cash flows.
Peer companies Thermo Fisher Scientific (TMO), Becton, Dickinson, and Company (BDX), and Abbott Laboratories (ABT) are estimated to report fiscal 2017 revenue growth of around 12.6%, -3.4%, and 30.4%, respectively.