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The stock of Baxter International (BAX 14.54%), a specialist of long standing in the medical device and associated products space, could have used a little pick-me-up on Thursday. The company posted a mixed third quarter that missed on analyst profitability estimates. An unforgiving market sent its share price down by almost 15% that trading session alone. Two metrics going in the opposite direction Before market open, Baxter published those quarterly figures. They revealed that total sales rose 5% year over year to $2.84 billion, while net income not according to generally accepted accounting principles (GAAP) sank by 14% to $355 million ($0.69 per share). Funnily enough, the improved revenue figure was below the consensus analyst estimate of $2.88 billion, but the shrunken non-GAAP (adjusted) net profit beat the $0.60 projection. Baxter divides its business into three segments, two of which posted net sales growth during the quarter. Pharmaceuticals led the way with a 7% gain, to $632 million, while healthcare systems and technologies rose by 3% to $773 million. On the other hand, medical products and therapies declined by 1% to slightly under $1.33 billion. The "other" category rose more than fivefold to $101 million. Guidance comes up short Another factor bringing the bears to Baxter stock Thursday was its guidance. For the full year, management is now anticipating sales growth of 1% to 2% over the 2024 result. Adjusted net income for the period is forecast at $2.35 to $2.40 per share, below the average analyst estimate of $2.44.
