Abbott Labs beats by $0.03, reports revs in-line; reaffirms FY13 EPS guidance; raises quarterly dividend 57% to $0.22/share
Reports Q3 (Sep) adj. earnings of $0.55 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.52; revenues rose 2.0% year/year to $5.37 bln vs the $5.4 bln consensus.
Sales growth this quarter was negatively affected by a sales disruption in International Nutrition, which was offset in the quarter by strong performance across other businesses, gross and operating margin improvements, expense controls and a lower tax rate. Ex-FX, worldwide sales increased 4.3 percent on an operational basis. Reported sales increased 2.0 percent, including an unfavorable 2.3 percent effect of foreign exchange. The sales disruption in International Nutrition is estimated to have reduced Abbott's total worldwide sales growth by nearly 2 percentage points.
Third-quarter adjusted gross margin ratio of 55.9 percent increased 70 basis points over prior year, ahead of expectations, driven by continuing improvements in Nutrition and Diagnostics.
Co reaffirms guidance for FY13, sees EPS of $1.98-2.04, excluding non-recurring items, vs. $2.00 Capital IQ Consensus Estimate.
Abbott is announcing an increase in the quarterly common dividend of 57 percent to $0.22 per share, payable on Feb. 15, 2014, to shareholders of record at the close of business on Jan. 15, 2014 (yield now 2.6%).