real-time news and commentary for investors
Wednesday, Oct 16
Abbott affirms EPS outlook, lifts dividend, but results hit by pediatric recall
- "We continued to have strong earnings performance, in spite of a supplier recall that impacted our International Nutrition business," Abbott Lab's (ABT) Miles White notes, referring to the supplier recall in August that hit the company's international pediatrics business.
- Worldwide sales rose 4.3% for Q3 ex-currency impact and 2% on a reported basis. The supplier recall reduced sales by an estimated 2%.
- Adjusted operating margin rose 210 bps Y/Y.
- On a segment-by-segment basis (currency neutral): Nutrition sales +3.4%; Diagnostics +10.5% (stronger than expected here, reflecting double-digit growth in Molecular and Point of Care Diagnostics, as well as high single-digit growth in the Core Laboratory business); Established Pharmaceuticals +0.6% (-2.9% reported); Medical Devices +3.9%.
- Quarterly dividend increased 57% to $0.22/share.
- FY13 outlook affirmed at $1.98-2.04/share. Consensus is $2/share. (PR)
- ABT +1.6% premarket.