(Reuters) -Baxter International on Thursday trimmed its forecasts for adjusted annual profit and revenue growth, after missing third-quarter revenue estimates due to persistent impact from hurricane-related disruptions at a key manufacturing unit.
Shares of the medical products maker were down more than 13% in premarket trading following the results.
Despite an uptick in non-essential medical procedures during the quarter, the company now expects adjusted earnings of $2.35 to $2.40 per share, down from its prior view of $2.42 and $2.52 per share.
It lowered its annual sales growth forecast to a range of 4% to 5% from the previous projection of 6% to 7% on a reported basis.
Baxter’s North Cove facility in North Carolina, which supplies 60% of IV fluids and peritoneal dialysis solutions in the U.S., was temporarily shut down last year due to flooding caused by Hurricane Helene.
“There is clearly work ahead of us,” said CEO Andrew Hider in a statement.
Baxter’s third-quarter results also came amid growing uncertainty from a U.S. Commerce Department investigation initiated in September into imports of personal protective equipment, medical consumables and medical devices.
Sales at its medical products unit fell 1% during the quarter from a year ago.
However, sales at its pharmaceuticals and healthcare systems unit as well as technology division rose 7% and 3%, respectively.
The company earned 69 cents per share on an adjusted basis in the third quarter, surpassing analysts’ average estimate of 60 cents, according to data compiled by LSEG.
Its quarterly revenue came in at $2.84 billion, missing expectations of $2.88 billion.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Shreya Biswas)
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