Baxter forecast 2026 profit below estimates as hurricane impact drags

Feb 12 (Reuters) - Baxter BAX.N forecast annual profit below Wall Street estimates on Thursday, as lingering hurricane-related disruptions at a key manufacturing facility weigh on operations, sending its shares down 13% before the bell.

The medical products maker expects 2026 adjusted profit between $1.85 and $2.05 per share, well below analysts' average expectation of $2.25 per share, according to data compiled by LSEG.

"We fully expected management to take a highly conservative stance on the guide, but the combination of the disappointing EPS performance in the quarter and the softer guide is likely to send shares down today," J.P.Morgan analyst Robbie Marcus said.

Baxter's North Cove facility in North Carolina, which supplies 60% of U.S. intravenous fluids and peritoneal dialysis solutions, was temporarily shut in 2024 due to flooding caused by Hurricane Helene.

"While we delivered sales growth across all segments, our fourth-quarter results did not meet our expectation," CEO Andrew Hider said.

Baxter earned adjusted profit from continuing operations of 44 cents per share in the fourth quarter, below analysts' estimates of 54 cents.

Quarterly revenue came in at $2.97 billion, beating estimates of $2.82 billion.

Fourth-quarter sales at its largest medical products and therapies unit, which includes IV solutions, rose 6% to $1.39 billion from a year ago.

Baxter also recorded $485 million in goodwill impairments and booked a $330 million valuation allowance against its U.S. deferred tax assets during the quarter.

It forecast flat-to-1% sales growth for 2026, a weak outlook that reflects persistent operational headwinds beyond the hurricane impact.

The company also announced board changes, with two directors resigning and finance veteran Michael McDonnell joining, effective February 13.