Stock Earnings in Review: Abbott Laboratories (ABT)

Abbott Laboratories (NYSE:ABT) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $0.41 per share on revenue of $4.89B. Analysts had been modeling earning per share of $0.39 with $4.78B in revenue.

Abbott Laboratories (NYSE:ABT) announced financial results for the first quarter ended March 31, 2016.

• Adjusted diluted EPS from continuing operations, which excludes specified items, was $0.41 in the first quarter, above Abbott’s previous guidance range. Reported diluted EPS from continuing operations under GAAP was $0.04 in the first quarter.


• First-quarter worldwide sales of $4.9 billion increased 5.1 percent on an operational basis and decreased 0.2 percent on a reported basis.


• Abbott is raising its full-year 2016 adjusted EPS guidance range for continuing operations to $2.14 to $2.24 from $2.10 to $2.20. Projected full-year 2016 EPS for continuing operations under GAAP is $1.36 to $1.46.


• Abbott’s recent innovations and product launches contributed to sales growth in the first quarter. Select recently launched products include Eleva^TM in the premium segment of the Chinese infant formula market; Abbott’s portfolio of infant and toddler non-GMO nutrition products in the U.S.; MitraClip^®, Abbott’s structural heart product for the treatment of mitral regurgitation; Freestyle^® Libre in Europe; Supera^® peripheral stent in the U.S. for treatment of blockages in the superficial femoral artery; and Abbott’s portfolio of TECNIS^® intraocular lenses for the treatment of cataracts.


• In the first quarter, Abbott received European approval for use in children and teens of its revolutionary FreeStyle Libre Flash Glucose Monitoring System that eliminates routine finger sticks and finger-stick calibration. In Abbott Vascular, Absorb^TM, Abbott’s fully dissolving vascular stent, earned a positive review from an independent U.S. Food and Drug Administration advisory committee.

“We’re off to a good start to the year and are raising our full-year adjusted EPS guidance range,” said Miles D. White, chairman and chief executive officer, Abbott. “All four of our businesses met or exceeded our growth expectations and underlying demand remains strong.”

FIRST-QUARTER BUSINESS OVERVIEW

First-quarter 2016 worldwide sales of $4.9 billion increased 5.1 percent on an operational basis and decreased 0.2 percent on a reported basis, including an unfavorable 5.3 percent effect of foreign exchange.

U.S. sales increased 1.9 percent, led by 9.2 percent growth in Point of Care Diagnostics, 7.5 percent growth in Medical Optics, and 4.9 percent growth in Nutrition.

International sales increased 6.6 percent on an operational basis and decreased 1.2 percent on a reported basis in the first quarter. International operational sales growth was led by 11.0 percent growth in Established Pharmaceuticals, 11.0 percent growth in Diabetes Care and 8.2 percent growth in Diagnostics.

Abbott Laboratories earnings per share showed an increasing trend of 53.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 247%.Analysts project EPS growth over the next 5 years at 9.4%. It has EPS annual decline over the past 5 fiscal years of -10.3% when sales declined -10.3. It reported -0.2% sales drop, and -89.2% EPS decline in the last quarter.

The stock is trading at $39.63, up 10.76% from 52-week low of $36. The stock trades down -22% from its peak of $51.74 and 17.76% above the consensus price target of $46.67. Its volume clocked up at 15.89 million shares which is higher than the average volume of 9.02 million shares. Its market capitalization currently stands at $57.74B.