Abbott Laboratories (ABT – Analyst Report) reported second-quarter 2015 earnings of 52 cents per share, up 6.12% year over year, beating the Zacks Consensus Estimate of 50 cents.
Abbott Labs generated sales of $5.2 billion in the second quarter of 2015, up 2.2% year over year (on a reported basis) and in line with the Zacks Consensus Estimate. Sales were impacted unfavorably by foreign exchange movements to the tune of 8.6% during the quarter.
Quarter in Detail
Abbott Labs operates through four segments, namely, Established Pharmaceuticals Division (EPD), Medical Devices, Diagnostics and Nutrition.
EPD sales were up 31.3% to $977 million including the negative impact of 14.7% due to currency fluctuations. Sales in key emerging markets climbed 43.2% on an operational basis driven by growth in India, China and Columbia.
The Medical Devices business generated sales of $1.3 billion, down 6.1% year over year. Diabetes Care sales, Vascular business sales and Medical Optics business were down 5.6%, 5.3% and 8%, respectively. Sales in the Medical Optics business were affected by market dynamics in the cataract and refractive businesses. Abbott filed for Absorb GT1 in the U.S. and Japan. The company expects to file for its approval in China in the next few months.
The Nutrition business improved 0.8% year over year to $1.7 billion. Pediatric Nutrition sales were up slightly (0.1%). Growth was driven by double-digit growth in China and Latin America. However, Adult Nutrition sales were weak in the U.S. due to competitive and market dynamics, particularly in the institutional segment.
Diagnostics business sales decreased 1% year over year to $1.2 billion. Core Laboratory and Molecular sales decreased 2.3% and 0.3%, respectively, while Point-of-Care Diagnostics sales grew 9.8%. Molecular Diagnostics sales in the U.S. were affected by market dynamics in the oncology business and the planned scale down of the genetics business.
During this quarter, Abbott received FDA clearance for its first-of-its-kind handheld and whole blood point of care test, i-STAT Total β-hCG test. In addition, Abbott launched its wireless i-STAT handheld system in Europe.
