Abbott: Where Is Growth Coming From?

Abbott Laboratories (ABT) engages in the discovery, development, manufacture, and sale of healthcare products worldwide, operating in four business segments: Established Pharmaceuticals Division (EPD), Medical Devices, Diagnostics and Nutritionals. Despite mixed global economy, ABT continues its growth from emerging market, led by the nutritional segment.

Strong Q1 Profit
For Q1, 2013, sales increased 1.8% to $5.38B, which was slightly below analysts’ expectation of $5.42B. However, without the research-based pharmaceuticals business, which spun out as AbbVie (ABBV) at the beginning of the year, ABT reported earnings of 42 cents a share, beating analysts’ consensus by a penny. Management also confirmed the full-year 2013 ongoing EPS outlook, which is for double-digit growth at the mid-point of the range. Despite a mixed global economy, ABT managed to deliver its current growth expectations and management expects to see some improvement in the second half of 2013.

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