Abbott and Manpower released their latest earnings reports before opening bell this morning. Abbott posted adjusted earnings of 54 cents per share, beating consensus by a penny, on $5.2 billion in revenue, which was in line with the consensus estimate and a 10.9% year over year increase.
Manpower reported earnings of $1.61 per share, which was flat with last year, on $5 billion in revenue, an 8% year over year decline. Analysts had been expecting earnings of $1.55 per share on $5.05 billion in revenue.
Abbott shows strong growth
Abbott’s GAAP earnings were 39 cents per share. International sales climbed 15.4% operationally and 1.6% on a reported basis, while sales in emerging markets climbed 21.2% operationally and 8.2% on a reported basis. The company recorded a negative impact of 9.5% due to currency exchange.
Worldwide Nutrition sales rose 6.5% year over year operationally and 0.2% on a reported basis to $1.8 billion, while Worldwide Diagnostics revenue increased 7.9% operationally but fell 2.1% on a reported basis. Abbott Laboratories’ Established Pharmaceuticals division recorded a 42.6% operational increase in sales and a 24.6% increase on a reported basis. The Worldwide Medical Devices business saw a 1.2% operational increase and a 7.4% decline on a reported basis in sales.
Abbott management also narrowed their full year guidance for earnings. The company expects special items of about 55 cents per share for the full year. Including these items, management expects GAAP earnings of between $1.59 and $1.61 per share.
As of this writing, shares of Abbott Laboratories were down 0.36% at $41.60 per share in premarket trades.
Manpower’s results hit by currency exchange
Manpower said the strength of the U.S. dollar weighed heavily on its third quarter results. Revenue ticked higher by 6% year over year on a constant currency basis. Management reported a negative impact of 25 cents per share on earnings.
“Our team executed well in the 3rd quarter, delivering good results despite an increasingly uneven global growth scenario,” said Manpower CEO Jonas Prising in a statement. “In this environment of volatile economic growth our clients are seeking to build more agile, flexible organizations to better adapt to any market changes affecting demand for their products and services, and this is where our global workforce solutions can play an important role.”
For the fourth quarter, Manpower expects earnings of between $1.47 and $1.55 per share, including a negative impact of 15 cents per share from currency exchange.