Abbott Second Quarter Profit Falls on Higher Taxes, Revenue Up
ABBOTT PARK, Ill. (AP) — Abbott Laboratories (ABT) said Wednesday that its second-quarter profit declined 2.1 percent, hampered by higher taxes. Adjusted profit and revenue topped Wall Street expectations, however, and the company boosted its full-year earnings forecast.
Shares rose before the opening bell Wednesday.
The generic drugmaker Mylan Inc. announced this week that it is buying Abbott's generic-drugs business in developed markets for stock valued at about $5.3 billion. The deal is expected to close early next year.
For the period ended June 30, Abbott — which makes infant formula like Similac as well as medical devices and drugs — earned $466 million, or 30 cents per share. That compares with $476 million, or 30 cents per share, a year ago.
Taxes on earnings from continuing operations more than doubled to $277 million from $125 million.
Stripping out nonrecurring items, earnings were 54 cents per share. This beat the 51 cents per share analysts surveyed by FactSet predicted.
Revenue rose 1.9 percent to $5.55 billion from $5.45 billion, helped by strength overseas and in emerging markets. International sales comprise more than 70 percent of Abbott's total sales. Emerging markets make up 40 percent of its total sales.
The revenue performance topped Wall Street's estimate of $5.53 billion.
Abbott now foresees full-year earnings of $2.19 to $2.29 per share. Its prior outlook was for $2.16 to $2.26 per share. Analysts expect $2.20 per share.
The Abbott Park company's shares gained 43 cents to $41.60 before the market open.