Abbott Laboratories Revenue Hurt by Currency Exchange
April 20 2016 - 9:40AM
Dow Jones News
Abbott Laboratories Inc. on Wednesday posted foreign-currency
driven revenue declines in its latest quarter, though it also
raised its annual guidance and said it saw constant-currency gains
across all of its segments.
Overall revenue fell 0.2% while operational revenue, which
factors out currency changes, increased 5.1%.
For the year, Abbott said it expects adjusted earnings per share
of $2.14 to $2.24, up from previous guidance of $2.10 to $2.20,
which was sharply below analysts' expectations at the time.
Abbott shares rose 1.2% to $44.37 in premarket trading. Shares
have risen 9.7% in the last three months.
For the quarter, the company posted a profit of $316 million, or
21 cents a share, down from $2.29 billion, or $1.51 a share, a year
earlier. The year-prior period included a $1.74 billion gain from
an asset sale. Excluding that and other items, earnings per share
were 41 cents, down from 47 cents a year prior.
Revenue decreased to $4.89 billion from $4.9 billion.
Analysts surveyed by Thomson Reuters forecast adjusted per-share
earnings of 39 cents on revenue of $4.78 billion.
Sales edged up 0.1% in its nutrition segment, its largest.
Recently launched infant and toddler GMO-free baby food and formula
and premium baby formula products in China drove a 4.3% increase on
a constant-currency basis.
In its diagnostics unit, sales increased 2.3% nominally and 6.9%
on a constant-currency basis as gains in its infectious disease
testing business were offset by the planned scale down of its
genetics business.
In its non-U. S. established pharmaceuticals unit, sales fell
1.0% but gained 11% when excluding currency fluctuations.
Performance was lead by India where it had double-digit growth
across several areas, including women's health, gastroenterology,
and cardio-metabolics.
Sales in its medical devices segment fell 2.4% but grew 0.5% in
constant-currency. The company said "competitive and market
dynamics" lead diabetes treatment sales in the U.S. to plummet
32%.
In March, Abbott said its Absorb dissolving heart stent received
a positive review from a Food and Drug Administration panel, paving
the way for potential approval in the U.S. later this year. It also
recently received approval in Europe to use a technologically
improved blood sugar monitoring system in children and teens.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 20, 2016 09:25 ET (13:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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