Libertyville Township-based Abbott Laboratories Inc. said Wednesday that its net income fell in the second quarter following the spinoff of its branded drug business, but the results beat Wall Street expectations
Abbott said sales of nutrition and diagnostic products improved, making up for lower sales of generic drugs and medical devices. The company spun off its branded drug business into a separate company called AbbVie on Jan. 1. AbbVie sells products including the anti-inflammatory drug Humira.
Abbott said its net income fell to $476 million, or 30 cents per share, from $1.73 billion, or $1.08 per share, a year ago. Excluding one-time charges and last year's AbbVie results, however, its earnings rose to 46 cents per share from 43 cents per share. Analysts surveyed by FactSet expected 44 cents per share.
Revenue grew 3 percent to $5.45 billion from $5.31 billion. Analysts expected $5.52 billion in revenue
Abbott gained less than 1 percent to $35.82 at the close in New York. The shares have increased 14 percent this year.
"We still expect Abbott's sales and earnings per share growth to outpace its MedTech and diversified peers," said Glenn Novarro, an analyst at RBC Capital Markets in New York, in a July 15 note to clients. "Abbott is the fastest-growing large cap company in our universe. As such, a premium valuation is justified."
Abbott retained the original company's medical devices, nutritional products, diagnostic tests and generic drugs. AbbVie, which will report earnings on July 26, kept the brand name drugs, including the best-selling Humira for rheumatoid arthritis.
Abbott backed its guidance for the full year, saying it expects to earn between $1.98 and $2.04 per share excluding special items. Analysts expect $2.01 per share on average.