Abbott reported second quarter 2014 earnings of $0.54 per share,
above the Zacks Consensus Estimate of $0.51. Quarterly sales of
$5.6 billion were just above the Zacks consensus Estimate. Sales
were hurt by foreign exchange movements during the quarter. We were
disappointed by the disruption in international markets of the
Nutrition business, which was one of the fastest-growing businesses
for Abbott. Nevertheless, Abbott is launching a number of new
products globally to recapture its lost market share in the
nutrition business. The second half of 2014 should see an improved
performance by the company. The improved earnings outlook for 2014
is encouraging. We believe that Abbott is extremely diversified
with its presence in nutrition, diagnostics, generic
pharmaceuticals and medical devices. We have maintained our Neutral
Abbott Laboratories discovers, develops, manufactures and sells
a diversified line of healthcare products. On Jan 1, 2013, Abbott
separated its pharmaceutical business into a new company called
AbbVie. The research-based pharmaceutical company, AbbVie,
comprises proprietary pharmaceuticals and biologics.
Abbott's shareholders received one share of AbbVie common stock
on Jan 1, 2013 for every one share of Abbott common shares held as
of the close of business on Dec 12, 2012. Abbott now comprises four
businesses, namely Established Pharmaceuticals Division (EPD),
Medical Devices, Diagnostics, and Nutritionals.
The Established Pharmaceuticals Division (EPD) is the company's
branded generics business. This segment generates sales outside the
US from a growing portfolio of hundreds of products. Of total EPD
sales, 60% are in emerging markets and 40% in developed
Medical Devices includes the diabetes care, vision care, and
The Diagnostics segment manufactures and markets diagnostic
systems and tests, which are sold worldwide to blood banks,
hospitals, commercial laboratories, and alternate-care testing
sites. The segment operates in three business lines core
laboratory, molecular and point of care.
The Nutritional Products segment includes a broad line of
pediatric and adult nutritional products, which are manufactured,
marketed, and sold on a worldwide basis. Key brands are Similac,
Ensure, Pedialyte and Glucerna.
Abbott generated sales of approximately $21.8 billion in
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