Baxter 3Q profit up, boosts year outlook

Baxter International Inc. said third-quarter profits rose 6 percent on strong sales of its hemophilia therapy, beating Wall Street forecasts and prompting the drug maker Thursday to boost full-year financial targets.

The news sent Baxter shares up more than seven percent, fetching their highest price in more than five years.

"We see nothing to complain about in Q3 results," Morgan Stanley analyst Glenn Reicin wrote in a research note to investors.

Baxter said its net income climbed to $395 million, or 61 cents per share for the quarter ending Sept. 30.

That's up from $374 million, or 57 cents per share, during the same period last year.

The July-to-September latest quarter included one-time charges of $63 million, or 9 cents per share, related to an acquisition and a lawsuit.

Excluding items, earnings hit $458 million, or 70 cents per share, beating Wall Street forecasts.

Sales climbed 8 percent to $2.75 billion from $2.56 billion last year.

"The company remains focused on executing our strategies and continuing to build shareholder value," Robert L. Parkinson, Jr., chairman and chief executive officer said in a statement.

On average, analysts surveyed by Thomson Financial forecast a profit of 66 cents per share and revenue of $2.68 billion.

Those estimates typically exclude one-time charges.

The Deerfield-based company said its bioscience business boosted sales by 14 percent, helped by growth of Advate, its treatment for hemophilia A. Meanwhile, worldwide sales of in its medical delivery unit grew 10 percent and its renal division climbed 8 percent.

For the year Baxter now expects earnings per share, excluding special items, of $2.75 to $2.77. It expected $2.65 to $2.70 per share previously.

Baxter shares climbed $4.22, or 7.6 percent, to $59.52 in midday trading.