Abbott Laboratories (NYSE:ABT) released the results from its second fiscal quarter this morning, posting earnings of 54 cents per share on $5.55 billion in revenue. Analysts had been expecting earnings per share of 51 cents on $5.53 billion in revenue.
GAAP earnings per share were 30 cents.
Breaking down Abbott Laboratories’ earnings
The drug maker beat its own guidance for earnings, which was between 50 cents and 52 cents per share, and saw double digit growth of 17.4% in earnings per share.
Abbott Laboratories reported 3% increase in worldwide sales for the quarter on a operational basis, and 1.9% on a reported basis. That includes a negative 1.1% impact from foreign exchange rates. International sales made up more than 70% of the drug maker’s total sales during the quarter. Emerging market sales made up more than 40% of its sales.
The company also launched some new products during the quarter, including its TECNIS Synfony intraocular lenses in Europe and ARCHITECT diabetes test in the U.S.
Abbott Laboratories raises guidance
Abbott Laboratories also increased its full year ongoing earnings per share guidance to between 2.19 and $2.29 per share. The previous guidance range was between $2.16 and $2.26 per share. At the midpoint of the new range, it reflects double digit growth. Projected full year GAAP earnings per share from continuing operations are between $1.16 and $1.26 per share.
The drug maker reports that both guidance ranges include its branded generics pharmaceuticals business in developed markets. This segment will be reported as discounted operations in the next quarter. Earlier this week, Abbott announced plans to sell the business to Mylan Inc (NASDAQ:MYL).
Abbott Laboratories updates sales and acquisitions
During the second quarter, Abbott also revealed plans to buy CFR Pharmaceuticals, based in Latin America, and Veropharm, based in Russia. With CFR, Abbott’s branded generics business in Latin America will double. In Russia, the drug maker will have a bigger manufacturing presence and footprint with the acquisition of Veropharm.
Abbott Pharmaceuticals and Fonterra also revealed last week that they entered into a strategic alliance to develop a dairy farm hub in China.