Latest news with #earnings miss
Reuters
43 minutes ago
- Business
- Reuters
Baxter cuts forecast, misses estimates amid lingering hurricane impact on medical products unit
July 31 (Reuters) - Baxter International (BAX.N), opens new tab cut its 2025 profit forecast on Thursday, while quarterly earnings missed analysts' estimates due to the lingering effect of Hurricane Helene, which damaged a key manufacturing facility and reduced demand for IV solutions. Shares of the medical products maker fell about 11% in premarket trading. Baxter now expects 2025 adjusted profit between $2.42 and $2.52 per share, down from its prior forecast of $2.47 to $2.55 per share. Analysts had expected $2.52 per share. The company lowered its forecast due to "potential downside risks" primarily affecting its medical products and therapies segment, following stagnant sales in the unit for the quarter. Hurricane Helene damaged Baxter's North Cove, North Carolina manufacturing site, affecting IV solution production and prompting hospitals to conserve fluids due to supply disruption. The hurricane also resulted in additional costs for remediation, air freight and other expenses for the company. "Softness in demand for IV solutions due to fluid conservation efforts enacted post Hurricane Helene partially offset the segment's growth in the quarter," the company said. Baxter said it has fully restocked IV solutions and lifted all supply limits for products made at its North Carolina facility. Its pharmaceuticals business also struggled, with injectable drug sales declining 1% amid difficult comparison with the prior year due to "timing of a government order", while anesthesia sales fell by low double digits globally. Baxter's medical products and therapies unit posted quarterly sales of $1.32 billion, while its pharmaceuticals unit achieved $612 million in sales. The company earned 59 cents per share on an adjusted basis in the quarter, compared with estimates of 61 cents. Revenue came in at $2.81 billion, just shy of expectations of $2.82 billion.
Reuters
2 days ago
- Business
- Reuters
UnitedHealth's downbeat annual forecast, quarterly profit miss hit shares
July 29 (Reuters) - UnitedHealth (UNH.N), opens new tab on Tuesday restored its full-year profit forecast that it suspended months ago, with a new outlook that highlighted the challenges the U.S. insurer faced, including rising medical costs. The company projected full-year earnings per share of at least $16, well short of analysts' lowered estimates, while second-quarter profit fell short of expectations. Its shares were trading about 5% down premarket, set to add to the more than 40% slump this year. UnitedHealth and other insurers have been hit hard this year by elevated medical costs. The company's underperformance led to the abrupt departure of CEO Andrew Witty in May. New CEO Stephen Hemsley is under pressure to regain investor trust amid company's financial issues and reputational damage. The company posted its first earnings miss in over a decade in the first quarter and is facing criminal and civil investigation by the U.S. Department of Justice over its Medicare Advantage billing practices. Morningstar analyst Julie Utterback said given the new outlook is roughly half of UnitedHealth's initial guidance for 2025, investors will be looking at management to allay fears over the longer-term earnings power of the business. UnitedHealth in December had initially forecast adjusted profit for 2025 to be between $29.50 and $30.00 per share. In 2024, its adjusted profit stood at $27.66 per share. The company said its new forecast reflects expectations for higher realized and anticipated care trends. The company suspended its 2025 forecast in May, a historic first for the insurer, citing higher-than-anticipated medical expenditures, which have also rattled its peers. The company's quarterly medical loss ratio - the percentage of premiums spent on medical care - stood at 89.4%, higher than analysts' expectation of 88.58%. The rise was mainly due to medical cost trends that significantly exceeded pricing trends, and the ongoing effects of Medicare funding reductions, UnitedHealth said. Still, the company remained optimistic and reiterated that it expects to return to profit growth in 2026. "While we face challenges across our lines of business, we believe we can resolve these issues and recapture our earnings growth potential," said Tim Noel, chief executive officer of the health insurance unit UnitedHealthcare. The company's adjusted second-quarter profit of $4.08 per share missed analysts' average estimate of $4.48.
