Shares of medical device maker Baxter International (BAX) plummeted 5.11% on Wednesday, November 8th, after the company lowered its earnings and revenue guidance for the fourth quarter and full year 2024. The sharp decline was attributed to the negative impact of Hurricane Helene on Baxter's North Cove manufacturing facility in North Carolina.
Hurricane Helene, which hit North Carolina in late September, led to flooding at Baxter's North Cove plant and forced a temporary production shutdown. The company said it was working to restore operations, but did not have a timeline for when the facility would return to full capacity. The highest output production line at the plant, which makes intravenous equipment, has restarted but accounts for only 25% of total production.
As a result, Baxter now expects fourth-quarter sales to be negatively impacted by around $200 million due to the hurricane's aftermath. The company lowered its adjusted earnings per share guidance for the fourth quarter to a range of $0.77 to $0.81, down from previous analyst estimates of $0.84.
For the full year 2024, Baxter cut its adjusted earnings per share outlook to $2.90 to $2.94, compared to its prior forecast of $2.93 to $3.01. The company also lowered its revenue growth projection to 1% to 2%, down from its previous estimate of 3%. Analysts had expected full-year adjusted earnings of $2.95 per share.
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