S&P 500 (NYSE:SPY) component Abbott Laboratories (NYSE:ABT) reported its results for the second quarter. Abbott Laboratories is a pharmaceuticals health care company, whose main line of business is in the discovery, development, manufacture, and sale of a broad range of health care products. Its customers include wholesalers, hospitals and commercial laboratories.
Abbott Laboratories Earnings Cheat Sheet for the Second Quarter
Results: Net income for Abbott Laboratories rose to $1.94 billion ($1.23 per share) vs. $1.29 billion (83 cents per share) in the same quarter a year earlier. This marks a rise of 50.4% from the year earlier quarter.
Revenue: Rose 9% to $9.62 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: ABT reported adjusted net income of $1.12 per share. By that measure, the company was about in line with expectations as the mean analyst estimate of $1.11 per share. Analysts were expecting revenue of $9.56 billion.
Quoting Management: “Abbott is well-positioned for a strong second half of the year as we remain on track for double-digit EPS growth in 2011,” said Miles D. White, chairman and chief executive officer, Abbott. “We’re also pleased with our growth in emerging markets, as well as the progress of our broad-based pipeline, including several new product approvals, regulatory submissions and clinical trial initiations.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.
Gross margin shrank 0.1 percentage point to 59.8%. The contraction appeared to be driven by increased costs, which rose 9.2% from the year earlier quarter while revenue rose 9%.
Revenue has risen the past four quarters. Revenue increased 17.4% to $9.04 billion in the first quarter. The figure rose 13.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 11.8% in the third quarter of the last fiscal year from the year-ago quarter.
Last quarter’s profit increase breaks a streak of three consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 13.9% from the year earlier, while the figure dropped 6.4% in the fourth quarter of the last fiscal year and 39.8% in the third quarter of the last fiscal year.
Competitors to Watch: Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ), Novartis AG (NYSE:NVS), GlaxoSmithKline plc (NYSE:GSK), Bristol Myers Squibb Co. (NYSE:BMY), Merck & Co., Inc. (NYSE:MRK), Medtronic, Inc. (NYSE:MDT), Boston Scientific Corp. (NYSE:BSX), and Sanofi-Aventis SA (NYSE:SNY).
(Source: Xignite Financials)