Shares of Abbott Laboratories (ABT, Financial) moved 3.13% higher to $85.76 at close on Wednesday after the company posted second-quarter results for fiscal 2019.
The Lake Bluff, Illinois-based health care company posted non-GAAP earnings of 82 cents per diluted share, which was 12.3% higher than the prior-year quarter and topped consensus estimates by 2 cents. GAAP earnings per share were 56 cents, or nearly 37% higher.
Moreover, net income grew 40.1% to $1.006 billion, and non-GAAP net income went up 13.1% to $1.465 billion.
Sales increased 2.7% year-over-year to $7.98 billion, but they missed projections by $20 million.
The Nutrition, Diagnostics and Medical Devices segments drove the increase in second-quarter sales, counteracting sales declines in the Established Pharmaceuticals segment. The Nutrition segment increased 0.9% to $1.875 billion, the Diagnostics segment was up 1.7% to $1.905 billion and the Medical Devices segment saw robust 6.4% growth to $3.075 billion. In contrast, the Established Pharmaceuticals segment languished, losing 1.8% of prior-year quarter sales to report $1.108 billion.
“Our sales growth accelerated and is sustainable,” CEO Miles D. White said in a statement on the second-quarter results. “We have great momentum and are raising our guidance above the strong outlook we previously set for the year.”
Looking ahead to fiscal 2019, Abbott expects GAAP earnings per share of between $2.06 and $2.12, up from the previous $1.95 and $2.05 range, and non-GAAP earnings per share of between $3.21 and $3.27, higher than the prior range of $3.15 to $3.25 and versus estimates of $3.23.
Concerning the third quarter of 2019, Abbott Laboratories projects GAAP earnings per share to fall within 53 cents and 55 cents, and non-GAAP earnings per share to fluctuate between 83 cents and 85 cents compared to estimates of 85 cents.
On June 14, Abbott will distribute its 382nd quarterly dividend, paying 32 cents per common share to shareholders of record July 15. The ex-dividend date is scheduled for July 12. Based on Wednesday’s closing price of $85.76 per share, the quarterly dividend produces a forward dividend yield of 1.54% versus an industry median of 1.59%.
Abbott Labs has hiked its annual dividend payout 47 times in 47 years.
Abbott is part of the Standard & Poor's 500 Dividend Aristocrats Index.
The share price increased 34% for the past 52 weeks through July 17 for a market capitalization of $151.3 billion. The share price is above the 200-, 100- and 50-day simple moving average lines.
The 52-week range is $62.87 to $86.75.
The stock has outperformed the S&P 500 index by 26.5% over the past year.
Disclosure: I have no position in any security mentioned.
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