Abbott Labs Q3 Results Top Estimates; Narrows 2016 Adj. EPS Guidance

(RTTNews) - Abbott Laboratories (ABT) reported that its net loss for the third quarter ended September 30, 2016 was $329 million or $0.22 per share, compared to net earnings of $580 million or $0.38 per share in the prior year.

In the pre-market trade, ABT is currently trading $40.50, down $0.67 or 1.63 percent.

Abbott adjusted its projected earnings per share from continuing operations under GAAP to $0.59 to $0.61 for the full year 2016.

Excluding specified items, Abbott raised the mid-point and narrowed its full-year 2016 guidance range for earnings per share from continuing operations to $2.19 to $2.21, exceeding its initial guidance for the year. Analysts expect annual earnings of $2.20 per share.

Reported loss from continuing operations under GAAP was $0.24 in the third quarter, compared to earnings per share of $0.39 per share, primarily due to an adjustment of $(0.66) per share associated with Abbott's equity investment in Mylan to reflect Mylan's share price as of September30, 2016.

Excluding specified items, adjusted earnings per share from continuing operations was $0.59 in the third quarter, compared to $0.54 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.58 per share for the quarter. Analysts' estimates typically exclude special items.

Third-quarter 2016 worldwide sales of $5.30 billion increased 2.9 percent on a reported basis, including an unfavorable 1.1 percent effect of foreign exchange, and increased 4.0 percent on an operational basis. Excluding the impact of Venezuelan operations, sales would have increased 4.5 percent on a reported basis and 5.6 percent on an operational basis. Wall Street expected revenues of $5.29 billion for the quarter.

International sales increased 2.2 percent on a reported basis and 3.7 percent on an operational basis in the third quarter. International operational growth was led by strong performance across Established Pharmaceuticals, Diagnostics and Medical Devices.

Worldwide Nutrition sales decreased 2.0 percent on a reported basis in the third quarter, including an unfavorable 1.0 percent effect of foreign exchange, and decreased 1.0 percent on an operational basis.

Worldwide Pediatric Nutrition sales decreased 4.0 percent on a reported basis in the third quarter, including an unfavorable 1.2 percent effect of foreign exchange, and decreased 2.8 percent on an operational basis.

Worldwide Adult Nutrition sales increased 0.6 percent on a reported basis in the third quarter, including an unfavorable 0.8 percent effect of foreign exchange, and increased 1.4 percent on an operational basis. Operational sales growth in the quarter was led by growth of Ensure®, Abbott's complete and balanced nutrition brand.

Worldwide Diagnostics sales increased 5.0 percent on a reported basis in the third quarter, including an unfavorable 0.4 percent effect of foreign exchange, and increased 5.4 percent on an operational basis.

Established Pharmaceuticals sales increased 5.3 percent on a reported basis in the third quarter, including an unfavorable 3.7 percent effect of foreign exchange, and increased 9.0 percent on an operational basis.

Worldwide Medical Devices sales increased 6.4 percent on a reported basis in the third quarter, including a favorable 0.4 percent effect of foreign exchange, and increased 6.0 percent on an operational basis.

Worldwide Diabetes Care sales increased 11.5 percent on a reported basis in the third quarter, including an unfavorable 1.0 percent effect of foreign exchange, and increased 12.5 percent on an operational basis.

On September 16, 2016, Abbott announced the sale of Abbott Medical Optics, its vision care business, to Johnson & Johnson for $4.325 billion. This transaction aligns with Abbott's shaping of its portfolio, which has recently focused on developing leadership positions in cardiovascular devices and expanding diagnostics. The transaction is expected to close in the first quarter of 2017 and is subject to customary closing conditions, including regulatory approvals.