) reported fourth quarter 2012 earnings of $1.51 per share, a
penny ahead of the Zacks Consensus Estimate and 4.1% above the
year-ago earnings. Including one-time items, fourth quarter
earnings decreased 35.3% to 66 cents per share.
Fourth quarter revenues increased 4.4% to $10.8 billion,
narrowly beating the Zacks Consensus Estimate of $10.6 billion.
Full year earnings came in at $5.07 per share, a penny above the
Zacks Consensus Estimate and 8.8% above the year-ago
Full-year earnings were within the guidance range of $5.06 to
$5.08 per share. Revenues increased 2.6% to $39.9 billion in
2012, edging past the Zacks Consensus Estimate of $39.6
Pharma Business Spun Off
We note that Abbott recently separated its research-based
pharmaceuticals business by creating a new company -
). The decision to spin off the business was taken back in Oct
2011 when Abbott decided to separate its business into two
publicly traded companies - one in diversified medical products
and the other in research-based pharmaceuticals.
The research-based pharmaceutical company, AbbVie, includes
proprietary pharmaceuticals and biologics including products like
Humira, Lupron, Synagis, Kaletra, Creon and Synthroid. The new
company started trading from the beginning of 2013.
Quarter in Detail
Fourth quarter results are for the combined company. Almost
all the business categories performed well during the quarter.
Proprietary Pharmaceutical sales were $5.1 billion, up 7.4%.
Humira was a major contributor with sales coming in at $2.7
billion, up 23.1%. Humira recorded sales growth in both the US
(31.1%) and international markets (15.2%) during the quarter.
Abbott Labs is looking to get Humira approved for additional
indications, which would help drive growth further. Lupron,
Androgel, Creon and Synthroid also contributed to Proprietary
Pharmaceutical sales growth.
The Nutritionals business grew 10.2% to $1.7 billion.
Nutrition sales in the US increased 9.4% to $743 million. Outside
the US, Nutrition sales continued to experience double-digit
growth with sales increasing 10.8% to $972 million. Strong
performance in emerging markets helped drive international
Other areas that witnessed growth include the Core Laboratory
Diagnostics, Molecular Diagnostics, Diabetes Care and Point of
Care Diagnostics businesses. Established Pharmaceuticals sales,
however, declined 2.4% to $1.3 billion.
In-Line Outlook for 2013
Along with releasing fourth quarter results, Abbott Labs
provided guidance for 2013. The company expects 2012 earnings in
the range of $1.98 to $2.04 per share. Guidance was in line with
the Zacks Consensus Estimate, currently standing at $2.00 per
share. The guidance excludes the newly formed AbbVie, which
started functioning as an independent company from the beginning
Abbott carries a Zacks Rank #5 (Strong Sell) in the short run.
However, not all large-cap pharma stocks are performing as poorly
as Abbott. Large-cap pharma companies that currently look more
). Both companies carry a Zacks Rank #2 (Buy).
ABBVIE INC (ABBV): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
BAYER A G -ADR (BAYRY): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
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