Baxter International (NYSE:BAX) boosted the low end of its full year forecast on Thursday, after reporting a 10 percent hike in its third quarter earnings, beating analyst estimates.
The medical device company said it now expects its full year profits to be in the range of $4.29 to $4.32 per share, up from its previous guidance of $4.27 to $4.32.
Baxter also anticipates full year revenues will rise between three and four percent, representing a range of between $13.18 and $13.13 billion.
Analysts polled by Bloomberg Businessweek are expecting earnings of $4.30, on $13.80 billion in sales for the full year.
For the current fourth quarter, the company expects earnings between $1.15 and $1.18, on revenue growth between two and three percent, or $3.75 and $3.61 billion. Analysts forecast $1.17 per share in fourth quarter earnings, on $3.60 billion in revenues.
For the three months ending September 30, Baxter reported net income of $576 million, or $1.01 per share, up ten percent over the $525 million, or $0.89 per share it earned a year ago.
Adjusted for a $48 million, or eight-cent per share charge related to a litigation dispute regarding its average wholesale prices, earnings for the quarter were $624 million, or $1.09 per share, beating estimates by a penny.
Revenues rose eight percent to $3.48 billion, topping analyst expectations of $3.4 billion.
Gross margins gained 40 basis points in the latest quarter, rising to 50.9 percent, from 51.5 percent a year earlier.
International sales rose 13 percent to $2.08 billion, driven by strong performance across its entire portfolio, Baxter said, especially in emerging markets.
The company's bioscience segment had a total of $1.52 billion in sales, up nine percent, largely on its Gammagard Liquid drug, a supplement that helps protect the body against infections in patients with primary immunodeficiency diseases.
Sales from Baxter's medical products unit climbed seven percent to $1.95 billion, more than offsetting an eight percent drop in revenues from its transfusion therapies, to $12 million.
In New York, Baxter investors took profit, sending shares of the company down 3.47 percent to $53.10 as of 12:30 pm EDT. In the last year, the stock has gained nearly 11 percent.