Baxter beats earnings estimates, raises full-year guidance

Baxter International, which last year spun off its drugs unit to form Baxalta Inc., beat analysts' second-quarter earnings estimates and raised its 2016 guidance after what it said was a strong first half of the year.

Earnings, excluding certain items, were 46 cents a share, beating the 40 cents average of analysts' estimates compiled by Bloomberg. Earnings for the full year will be $1.69 to $1.74 a share, it said in a statement Tuesday, up from the $1.59 to $1.67 the company predicted in April.

Deerfield-based Baxter has been attempting to refocus its business and in 2014 announced it would spin off its drugs unit and form Baxalta, leaving it to focus on kidney care and hospital products. Baxalta was bought by Shire Plc in June for $32 billion.

Revenue for the quarter grew 4.4 percent $2.59 billion, beating analysts' $2.52 billion estimate. Sales of its hospital products rose 6.2 percent to $1.62 billion. Renal sales grew 1.7 percent to $965 million.

Vijay Kumar, an analyst with Evercore ISI, said investors expected the company to beat. "The key debate for investors was the magnitude of the beat and whether shares would react favorably," he said in a note to clients. "This reaffirms our thesis for turnaround."

The company traced its growth for the quarter to its U.S. Fluid Systems franchise and its Sigma infusion pumps and IV-related products. Anesthesia products and hospital pharmacy compounding services also contributed to growth, Baxter said.

Net income at the company was $1.21 billion, or $2.19 a share, up from $332 million, or 13 cents, a year earlier. Of that, $1.1 billion was from the sale of shares of Baxalta held after the spinoff.