Abbott Labs Profit Falls, Hurt by Currency
January 28 2016 - 9:22AM
Dow Jones News
By Anne Steele
Abbott Laboratories Inc. on Thursday reported its profit fell
15% in the final quarter of the year, as the stronger dollar
weighed on results despite growth in emerging markets.
Abbott also gave annual guidance sharply below Wall Street
expectations, citing challenging market conditions in Venezuela.
The company expects earnings between $2.10 to $2.20 a share,
compared with analyst estimates for $2.26 a share, according to
Thomson Reuters.
Shares, which have fallen 9.9% over the past three months, fell
another 6.1% premarket to $38.
Overall, the company posted a profit of $767 million, or 51
cents a share, down from $905 million, or 59 cents a share, a year
earlier. Excluding certain items, earnings per share were 62 cents.
Revenue decreased 3.1% to $5.19 billion.
Analysts surveyed by Thomson Reuters forecast per-share earnings
of 61 cents on revenue of $5.23 billion.
Sales in emerging markets provided a 17% boon for the
Illinois-based health-care company. Operational sales growth in the
quarter was led by double-digit growth in India, China and Russia.
Revenue in the U.S., however, declined 5.7%.
Worldwide pediatric nutrition revenue fell 1.3%, hurt by a 5%
currency impact. In the U.S., sales growth was led by continued
uptake of several recently launched non-GMO products.
Worldwide adult nutrition sales rose 1.3%, which included a 6.6%
foreign exchange drag. Worldwide medical devices and world-wide
diabetes care sales dipped 5.9% and 5.2%, respectively.
Established pharmaceuticals sales fell 4%, dented 15% by
unfavorable currency exchange.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 28, 2016 09:07 ET (14:07 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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