Abbott Labs Profit Rises, Helped by Emerging Markets
October 21 2015 - 10:50AM
Dow Jones News
By Ezequiel Minaya
Abbott Laboratories Inc. said Wednesday that profit grew 7.8% in
its latest quarter as results were aided by emerging markets
growth.
Shares rose 2.5% to $42.78 in early trading as revenue and
adjusted profit edged above Wall Street's estimates.
In the wake of the results, Abbott narrowed its annual guidance
range for earnings per share, excluding specified items, to $2.14
to $2.16 from a previous range of $2.10 to $2.20.
Sales in emerging markets provided a boost for the
Illinois-based health-care company, jumping 8.2%. Operational sales
growth in the quarter was led by India, Russia, Brazil, China, and
several markets throughout Latin America, the company reported.
Revenue in the U.S. declined 0.7%.
Analysts for Evercore ISI said relative to investors' fears of a
slowdown in emerging markets, Abbott delivered solid results.
"We also note that the nutritional segment growth was
exceptionally strong despite the tougher comps and fears around
potential consumer weakness impacting China nutritionals," they
added.
Worldwide pediatric nutrition revenue increased 4.1%, with
growth led by the Eleva product in China and Similac Advance in the
U.S.
Worldwide adult nutrition dipped 4.5%, which included a 7.1%
foreign exchange drag. Worldwide medical devices and worldwide
diabetes care sales dipped 7.4% and 8.4%, respectively.
Established pharmaceuticals sales climbed 24.6%, shaking off an
18% dent from currency impacts.
Overall, the company posted a profit of $580 million, or 38
cents a share, up from $538 million, or 36 cents a share, a year
earlier. Excluding certain items, earnings per share remained flat
at 54 cents.
Revenue rose 1.4% to $5.15 billion.
Analysts surveyed by Thomson Reuters forecast per-share earnings
of 53 cents on revenue of $5.14 billion.
Abbott has been realigning its business in a series of deals.
Last year, Abbott reached an agreement to shed a portion of its
generics pharmaceuticals business to Mylan Inc., a transaction that
underscored a trend of health-care mergers-and-acquisitions driven
in part to seek tax advantages.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 21, 2015 10:35 ET (14:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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