Can Abbott Labs Continue to Impress (1)
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Can Abbott Labs Continue to Impress?
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Abbott Laboratories (NYSE: ABT) recently posted second quarter results that beat expectations, albeit slightly. Spinning off the company's pharmaceutical arm into AbbVie exposed a bloated, underperforming giant. Fortunately, the company is making strides to boost profitability and increase its presence in quickly growing markets. The Street likes the results so far. Watch the slideshow to see if Abbott Labs can continue to impress in the quarters to come.
Transcript of Can Abbott Labs Continue to Impress (1)
Can Abbott Labs Continue to Impress?
Abbott Labs: Second-Quarter ResultsAt a glance:• Sales growth of 3%
(1.9% after currency adjustment)
• Non-GAAP EPS grew 17.4% to $0.54
• GAAP EPS of $0.30 in line with same period a year ago
Abbott Labs: Second-Quarter Results
Raising full year guidance midpoints:• Non-Gaap EPS from
$2.21 to $2.24• GAAP EPS from $1.18
to $1.21
Abbott Labs: Established DrugsLatin America • Acquired CFR Pharmaceuticals
for $2.9 billion• Doubles branded generic
presence in the region• Expected addition of $900
million to 2015 sales• Latin American pharmaceutical
market forecast to increase from $73 billion in 2014 to $124 billion in 2018
Abbott Labs: Established DrugsLeaving difficult developed regions
• Selling developed markets branded generics pharmaceutical business to Mylan
• Abbott receives 21% stake in new entity to be composed of Mylan’s existing business and Abbott’s divested unit
• Intent to fuel emerging market growth with eventual sale of new entity
Abbott Labs: Medical Devices
Optics• Increased 12.2%• Recently launched
intraocular lenses gaining share
• Offsetting steep losses in diabetes and drug eluting stents
Abbott Labs: Medical Devices
New Glucose Monitor
• EU approval likely before end of year
• Wearable sensor makes finger pricks unnecessary
Abbott Labs: NutritionReturning to growth
• Supplier recall in August 2013 sent international pediatric nutrition into tailspin
• Segment up 0.5% on year-to-year operational basis
Abbott Labs: NutritionReducing risk of repeat• Developing dairy farm
hub in China through alliance with Fonterra
• Opened new Chinese plant to manufacture baby formula for local market
Abbott Labs: Look Out ForBoosting profitability● loss of
pharmaceuticals following AbbVie split exposed lackluster margins
● Improvement already visible
● Still plenty of opportunity to boost earnings
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