Last year, Abbot’s net income, was $303 million, including acquisition and litigation expenditures, as well as cost cutting measures. The company’s $1.30 EPS beat the $1.28 EPS consensus estimate of Wall Street analysts. The reduction in sales and administrative costs, approximately $2.9 billion, contributed in the outcome of the third quarter earnings.
In a statement, Miles D. White, chairman and chief executive officer of Abbott Laboratories (NYSE:ABT), said, the company “delivered another quarter of strong results with ongoing earnings per share up more than 10 percent, despite a challenging global economy.” He is confident that the product launches in pharmaceuticals, vascular, and diagnostics would contribute to the future growth of the company.
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According to Abbot, the changes in currency exchange rates decreased its revenue by 4 percent. Excluding the negative effect of currency changes, Abbot’s revenue from its branded drugs business segment increased by 6.4 percent and revenue from its nutritional formula business segment was up by 6.3 percent. Abbot incurred $6 million net loss in foreign exchange.
Abbot’s reported $7.78 billion operating costs and expenses and operating income of $1.99 billion. During the period, the company spent $1.16 billion in research and development. The drug and medical devices maker announced the initiation of Phase 3 HCV clinical trial for its interferon-free hepatitis C (HCV) program in genotype 1 (GT1) patients.
The third quarter worldwide sales of Humira, a prescription drug used to treat rheumatoid arthritis, was $2.33 billion, below the $2.37 billion consensus estimate of analysts.
According to Abbott Laboratories (NYSE:ABT), its plan to spin off its business operations into two separate companies will push through by January 1. The company narrowed its full-year 2012 earnings guidance to $5.06 – $5.08 per share, from $5 – $5.10 per share. ABT provided additional details about the company separation. The split could occur in early 2013. The diversified medical products business will retain the Abbott name. A recent filing outlined details about AbbVie, the research-based pure-play pharmaceutical company, to be distributed to shareholders.