The U.S. health care company Abbott Laboratories (ABT, Financial) reported strong third-quarter results before the opening bell on Wednesday, though shares declined 1.01% to $70.23.
The Lake Bluff, Illinois-based company posted adjusted earnings of 75 cents per diluted share, matching estimates. On a GAAP basis, earnings per share were 31 cents. Total sales grew 12.1% from the prior-year quarter to $7.66 billion, beating expectations by $10 million.
The increase in sales was driven by the diagnostics segment , which was up 42.6% to $1.824 billion, by the medical devices which was up 8.4% to $2.815 billion and by the nutrition segment which grew 4% to $1.838 billion. The established pharmaceuticals segment declined 0.9% to $1.159 billion.
CEO Miles D. White commented on the third-quarter results: “In spite of increasing currency headwinds, we're well-positioned to achieve the upper end of our initial full-year guidance.”
For full-year 2018, the company expects to report earnings per share of between $1.33 and $1.35 and non-GAAP earnings per share of between $2.87 and $2.89.
The company also informed the shareholders about expectations on earnings for the next quarter: GAAP earnings per share is predicted to be within 39 cents and 41 cents, while non-GAAP earnings per share is forecasted to range between 80 cents and 82 cents.
Abbott declared its 379th quarterly dividend of 28 cents per share in September and will make the payment on Nov. 15. The current dividend yield is 1.58% compared to an industry median of 1.12%. If held constant, the cash quarterly dividend of 28 cents will lead to a forward dividend yield of 1.58% versus an industry median of 1.48%. The ratio is based on the share price at market close Wednesday.
Abbott Labs has increased its dividend 46 times in a row over the past 46 years.
Abbott is part of the Standard & Poor's 500 Dividend Aristocrats Index.
The company has a market capitalization of about $124.47 billion on the New York Stock Exchange.
The share price at close Wednesday is 31% off the 52-week low of $53.61 and 5.6% from the 52-week high of $74.15. The price-book ratio is 4.03 versus an industry median of 3.06 and the price-sales ratio is 4.18 compared to an industry median of 3.15.
The stock has outperformed the S&P 500 index by about 15%.
Disclosure: I have no position in Abbott Laboratories or in the S&P 500.
