Abbott’s revenues are derived primarily from the sale of a broad line of health care products under short-term receivable arrangements. The company’s primary products are cardiovascular and neuromodulation products, diagnostic testing products, nutritional products and branded generic pharmaceuticals. Sales in international markets comprise about 65% of consolidated net sales.
Analysts expect the company’s earnings to increase by 9.60% to $0.80 per share and revenue will rise by 2.90% to $8 billion for the second quarter. In comparison, during the previous year quarter, Abbott reported a profit of $0.73 per share on revenue of $7.77 billion. The company has surprised investors by beating the analysts’ expectations twice in the past four quarters.
For the first quarter, the company reported a 61% jump in earnings helped by lower costs and expenses. Sales rose by 2% on reported basis and 7.1% on an organic basis. The results benefited from double-digit growth in Electrophysiology, Heart Failure, Structural Heart and Diabetes Care of Medical Devices segment.
For the second quarter, Abbott expects GAAP earnings in the range of $0.47 to $0.49 per share and adjusted earnings from continuing operations of $0.79 to $0.81 per share. For full-year 2019, the company predicts GAAP earnings in the range of $1.95 to $2.05 per share and adjusted earnings of $3.15 to $3.25 per share.
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The reduction of cash and cash equivalents from $3.8 billion at December 31, 2018 to $3 billion at March 31, 2019 primarily reflects repayment of $500 million of debt, the payment of dividends and capital expenditures. Working capital was $5.3 billion at March 31, 2019 and $5.6 billion at December 31, 2018, due to the decrease in cash partially offset by an increase in inventory and accounts receivable.
Shares of Abbott ended Monday’s regular session down 0.13% at $83.81 on the NYSE. The stock has risen over 32% in the past year and over 8% in the past three months.
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