can abbott labs continue to impress (1)
Post on 23-Aug-2014
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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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