Can Abbott Labs Continue to Impress (1)

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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.

Published in: Healthcare

Can Abbott Labs Continue to Impress (1)

  1. 1. Can Abbott Labs Continue to Impress?
  2. 2. Abbott Labs: Second-Quarter Results At 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
  3. 3. 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
  4. 4. Abbott Labs: Established Drugs Latin 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
  5. 5. Abbott Labs: Established Drugs Leaving 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
  6. 6. Abbott Labs: Medical Devices Optics • Increased 12.2% • Recently launched intraocular lenses gaining share • Offsetting steep losses in diabetes and drug eluting stents
  7. 7. Abbott Labs: Medical Devices New Glucose Monitor • EU approval likely before end of year • Wearable sensor makes finger pricks unnecessary
  8. 8. Abbott Labs: Nutrition Returning to growth • Supplier recall in August 2013 sent international pediatric nutrition into tailspin • Segment up 0.5% on year-to-year operational basis
  9. 9. Abbott Labs: Nutrition Reducing risk of repeat • Developing dairy farm hub in China through alliance with Fonterra • Opened new Chinese plant to manufacture baby formula for local market
  10. 10. Abbott Labs: Look Out For Boosting profitability ● loss of pharmaceuticals following AbbVie split exposed lackluster margins ● Improvement already visible ● Still plenty of opportunity to boost earnings
  11. 11. Smart investors know dividend stocks like Abbott Labs crush their non-dividend paying counterparts over the long term. Our top analysts put together a report on a group of high-yielding stocks that should be in any income investor’s portfolio.

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