Abbott Laboratories (ABT) reported fourth quarter earnings of $1.18 per share, a cent above the Zacks Consensus Estimate of $1.17. Earnings increased 11.3% from the year-ago period.

For the full year, Abbott reported earnings of $3.72, up 12% from the year-ago period. Full year results were in-line with the company’s guidance of $3.70 – $3.72.

Fourth quarter revenues grew 10.6% to $8,790 million. Revenues were positively impacted by foreign exchange (Fx) fluctuations (2.4%). Full-year revenues were $30.8 billion, up 4.2%.

Pharmaceutical division revenues for the fourth quarter were $4,849 million, up 5.2% and positively impacted by about 2.5% by Fx. Strong Humira and lipid franchise sales were offset by a weak performance of Depakote, which is facing intense generic competition. The lipid franchise posted sales of $673 million during the quarter. Abbott reported a favorable impact on Niaspan prescription trends following the release of data from the Arbiter-6 HALTS at the American Heart Association in November 2009.

Going forward, the approval of Certriad, potentially in the first half of 2010, should help drive lipid franchise sales. Certriad is a fixed-dose combination of TriLipix and Crestor which has been co-developed with AstraZeneca (AZN). Full-year Pharmaceutical division revenues were $16.5 billion, down 1.3% mainly due to Fx headwinds.

Meanwhile, Humira recorded growth in both U.S. (3%) and international markets (7.4%) during the fourth quarter. Humira exited 2009 with a 42% share of the US anti-TNF (tumor necrosis factors) market. Fourth quarter sales increased to 23% to $1.7 billion, with full year sales coming in at $5.5 billion, up 21%.

The Nutritional business posted fourth quarter revenues of $1,433 million in the quarter, up 8.8%. The segment is enjoying strong growth in key emerging markets Incorporatedluding Latin America and Asia. Full year Nutritional revenues increased 7.3% to $5.3 billion. Abbott Diagnostics posted sales of $975 million in the quarter, representing an increase of 8.8%. Full year Diagnostics revenues increased 0.1% to $3.6 billion.

The Vascular division continued to perform well, with fourth quarter revenues increasing 9.1% to $723 million. XIENCE V should continue performing well thanks to recent approvals in countries like Japan, China and Mexico. Full year Vascular division sales increased 20% to $2.7 billion. Meanwhile, other division sales totaled $810 million, representing growth of 74.6%. For the full year, other division sales increased 31.1% to $2.7 billion.

Management provided better-than-expected guidance for 2010. The company expects earnings in the range of $4.20 to $4.25. The current Zacks Consensus Estimate for 2010 is $4.19. The company also declared a quarterly dividend of 40 cents per share.

We currently have a Neutral recommendation on Abbott. Abbott’s strong business segments, contributions from recent acquisitions and impressive late-stage pipeline should help fortify long-term earnings growth.

Zacks Investment Research

1. (ABT) Abbott Laboratories Aquires Starlims TechnologiesAbbott Laboratories (ABT) continues to be in acquiring mode with the company recently announcing that...
2. (ABT) Abbott Laboratories Settles Dispute with Teva Pharmaceutical IndustriesIn a filing with the U.S. Securities and Exchange Commission (SEC), Abbott Laboratories Inc. (ABT)...
3. (ABT) Abbott Laboratories Outperforms & RaisesAbbott Laboratories (ABT) reported third quarter earnings of 92 cents per share, 2 cents above...
4. (ABT) Abbott Laboratories Expands Vascular BusinessYesterday, Abbott Laboratories (ABT) agreed to acquire 90% of the outstanding equity of Evalve, Inc....
5. (ABT) Abbott Laboratories – The company recently declared its 340th consecutive quarterly dividendAbbott Laboratories (ABT) recently declared its 340th consecutive quarterly dividend. The dividend of 36 cents...
6. (ABT) – Abbott Laboratories – solid return on equityof 27%, which tops the industry average of -13%Abbott Laboratories (ABT), which is trading near a 52-week high, announced stellar results for the...

Search Posts by Tag: Abbott Laboratories | ABT | AstraZeneca plc | AZN | Drug Manufacturers - Major | Healthcare

RSS Feeds by Tag: Abbott Laboratories | ABT | AstraZeneca plc | AZN | Drug Manufacturers - Major | Healthcare |

Other Posts by: vitalstocks | RSS Feed for this author