Abbott Reports Third-Quarter 2017 Results
ABBOTT PARK, Ill., Oct. 18, 2017 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the third quarter ended Sept. 30, 2017.
- Third-quarter worldwide sales of $6.8 billion increased 28.8 percent on a reported basis and 5.6 percent on a comparable operational* basis.
- Reported diluted EPS from continuing operations under GAAP was $0.32 in the third quarter. Excluding specified items, adjusted diluted EPS from continuing operations was $0.66 in the third quarter, at the high end of the previous guidance range of $0.64 to $0.66.
- Abbott narrowed its full-year 2017 EPS guidance range, which continues to reflect double-digit growth. Abbott projects full-year diluted EPS from continuing operations on a GAAP basis of $0.97 to $0.99. Projected full-year adjusted diluted EPS from continuing operations is now $2.48 to $2.50, which represents an increase at the mid-point of the guidance range.
- In September, Abbott received U.S. FDA approval for its FreeStyle® Libre glucose monitoring system as a replacement1 for finger stick blood glucose monitoring. This revolutionary technology is the only system available that comes factory-calibrated, thus eliminating the need for daily finger sticks that are required to calibrate other continuous glucose monitoring systems.
- During the quarter, Abbott obtained national reimbursement for FreeStyle Libre in Japan and the United Kingdom for people with diabetes, both Type 1 and Type 2, on insulin therapy.
- In September, Abbott received U.S. FDA approval for magnetic resonance (MR)-conditional labeling for its EllipseTM implantable cardioverter defibrillator (ICD). This approval follows U.S. FDA approval for MR-conditional labeling for its Assurity MRITM pacemaker earlier this year.
- In August, Abbott received U.S. FDA approval for its HeartMate 3TM system, which helps a weak heart pump blood for patients with advanced heart failure.
- On Oct. 3, 2017, Abbott completed the acquisition of Alere, Inc., establishing Abbott as the global leader in the point of care diagnostics market.
"We're very pleased with our performance and the steady cadence of innovative new product launches that are contributing to growth," said Miles D. White, chairman and chief executive officer, Abbott. "We're well-positioned to achieve the upper end of our initial full-year EPS guidance range."
* See note on comparable operational growth below.
THIRD-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on a comparable operational basis is an appropriate way for investors to best understand the underlying performance of the business.
Comparable operational sales growth excludes the impact of exchange and for Total Abbott and Medical Devices, also includes prior year results for St. Jude Medical, which was acquired on Jan. 4, 2017, and excludes prior year and current year results for the Abbott Medical Optics (AMO) and St. Jude Medical vascular closure businesses, which were divested during the first quarter 2017. Comparable operational sales growth also reflects a reduction to St. Jude Medical's historic sales related to administrative fees paid to conform to Abbott's presentation, as further described in Form 8-K issued on April 18, 2017.
Following are sales by business segment and commentary for the third quarter and first nine months of 2017:
Total Company | ||||||||||||||||||
($ in millions) | ||||||||||||||||||
% Change vs. 3Q16 | ||||||||||||||||||
Sales 3Q17 |
Reported |
Comparable Operational | ||||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | ||||||||||
Total * |
2,313 |
4,516 |
6,829 |
40.6 |
23.5 |
28.8 |
2.0 |
7.6 |
5.6 | |||||||||
Nutrition |
759 |
1,009 |
1,768 |
0.5 |
1.0 |
0.8 |
0.5 |
1.1 |
0.8 | |||||||||
Diagnostics |
369 |
910 |
1,279 |
2.0 |
6.9 |
5.4 |
2.0 |
6.6 |
5.2 | |||||||||
Established Pharmaceuticals |
-- |
1,171 |
1,171 |
n/a |
15.7 |
15.7 |
n/a |
14.3 |
14.3 | |||||||||
Medical Devices |
1,177 |
1,420 |
2,597 |
126.8 |
79.5 |
98.2 |
3.1 |
7.8 |
5.6 | |||||||||
* Total Abbott sales from continuing operations include Other Sales of $14 million. In 2016, the AMO business, which was divested during the first quarter 2017, was reported as part of the Medical Devices group. Comparable operational growth rates above exclude results from the AMO business. | ||||||||||||||||||
% Change vs. 9M16 | ||||||||||||||||||
Sales 9M17 |
Reported |
Comparable Operational | ||||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | ||||||||||
Total * |
6,997 |
12,804 |
19,801 |
44.8 |
19.8 |
27.6 |
3.0 |
4.5 |
3.9 | |||||||||
Nutrition |
2,262 |
2,879 |
5,141 |
1.7 |
(2.2) |
(0.5) |
1.7 |
(1.1) |
0.1 | |||||||||
Diagnostics |
1,125 |
2,585 |
3,710 |
6.0 |
3.6 |
4.3 |
6.0 |
4.7 |
5.1 | |||||||||
Established Pharmaceuticals |
-- |
3,142 |
3,142 |
n/a |
9.1 |
9.1 |
n/a |
8.0 |
8.0 | |||||||||
Medical Devices |
3,504 |
4,084 |
7,588 |
130.5 |
73.2 |
95.6 |
2.8 |
5.8 |
4.4 |
* In 2017, total Abbott sales from continuing operations include Other Sales of $220 million, including sales of $175 million from the AMO business, which was divested during the first quarter 2017. In 2016, the AMO business was reported as part of the Medical Devices group. Comparable operational growth rates above exclude results from the AMO business. |
n/a = Not Applicable. |
Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates. |
Third-quarter 2017 worldwide sales of $6.8 billion increased 28.8 percent on a reported basis. On a comparable operational basis, worldwide sales increased 5.6 percent. Refer to tables titled "Non-GAAP Reconciliation of Comparable Historical Revenue" for a reconciliation of comparable historical revenue.
Nutrition | ||||||||||||||||||
($ in millions) | ||||||||||||||||||
% Change vs. 3Q16 | ||||||||||||||||||
Sales 3Q17 |
Reported |
Comparable Operational | ||||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | ||||||||||
Total |
759 |
1,009 |
1,768 |
0.5 |
1.0 |
0.8 |
0.5 |
1.1 |
0.8 | |||||||||
Pediatric |
436 |
539 |
975 |
5.2 |
(2.4) |
0.8 |
5.2 |
(2.6) |
0.7 | |||||||||
Adult |
323 |
470 |
793 |
(5.3) |
5.2 |
0.7 |
(5.3) |
5.6 |
0.9 | |||||||||
% Change vs. 9M16 | ||||||||||||||||||
Sales 9M17 |
Reported |
Comparable Operational | ||||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | ||||||||||
Total |
2,262 |
2,879 |
5,141 |
1.7 |
(2.2) |
(0.5) |
1.7 |
(1.1) |
0.1 | |||||||||
Pediatric |
1,327 |
1,562 |
2,889 |
6.8 |
(6.1) |
(0.6) |
6.8 |
(5.1) |
- | |||||||||
Adult |
935 |
1,317 |
2,252 |
(4.8) |
3.0 |
(0.3) |
(4.8) |
4.1 |
0.3 |
Worldwide Nutrition sales increased 0.8 percent on a reported and operational basis in the third quarter.
Worldwide Pediatric Nutrition sales increased 0.8 percent on a reported basis in the third quarter, including a favorable 0.1 percent effect of foreign exchange, and increased 0.7 percent on an operational basis. Sales growth in the quarter was led by above-market growth in the U.S. with continued strong performance across Abbott's portfolio of infant and pediatric nutrition products. As expected, sales growth in China improved sequentially versus the prior quarter, which was offset by continued challenging market conditions in certain other international countries.
Worldwide Adult Nutrition sales increased 0.7 percent on a reported basis in the third quarter, including an unfavorable 0.2 percent effect of foreign exchange, and increased 0.9 percent on an operational basis. International sales growth of 5.2 percent on a reported basis and 5.6 percent on an operational basis was led by growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna®, Abbott's market-leading diabetes-specific nutrition brand. As expected, U.S. sales growth was impacted by competitive and market dynamics.
Diagnostics | ||||||||||||||||||
($ in millions) | ||||||||||||||||||
% Change vs. 3Q16 | ||||||||||||||||||
Sales 3Q17 |
Reported |
Comparable Operational | ||||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | ||||||||||
Total |
369 |
910 |
1,279 |
2.0 |
6.9 |
5.4 |
2.0 |
6.6 |
5.2 | |||||||||
Core Laboratory |
230 |
803 |
1,033 |
4.6 |
6.0 |
5.7 |
4.6 |
5.9 |
5.6 | |||||||||
Molecular |
37 |
78 |
115 |
(13.8) |
12.7 |
2.7 |
(13.8) |
10.1 |
1.1 | |||||||||
Point of Care |
102 |
29 |
131 |
2.9 |
17.4 |
5.8 |
2.9 |
16.7 |
5.6 | |||||||||
% Change vs. 9M16 | ||||||||||||||||||
Sales 9M17 |
Reported |
Comparable Operational | ||||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | ||||||||||
Total |
1,125 |
2,585 |
3,710 |
6.0 |
3.6 |
4.3 |
6.0 |
4.7 |
5.1 | |||||||||
Core Laboratory |
678 |
2,286 |
2,964 |
10.1 |
2.8 |
4.3 |
10.1 |
4.1 |
5.4 | |||||||||
Molecular |
123 |
218 |
341 |
(12.3) |
9.6 |
0.6 |
(12.3) |
8.9 |
0.1 | |||||||||
Point of Care |
324 |
81 |
405 |
6.1 |
12.3 |
7.3 |
6.1 |
12.7 |
7.4 |
Worldwide Diagnostics sales increased 5.4 percent on a reported basis in the third quarter, including a favorable 0.2 percent effect of foreign exchange, and increased 5.2 percent on an operational basis.
Core Laboratory Diagnostics sales increased 5.7 percent on a reported basis in the third quarter, including a favorable 0.1 percent effect of foreign exchange, and increased 5.6 percent on an operational basis. Growth in the quarter was led by continued share gains globally. Internationally, Abbott continued the early roll-out of its recently launched Alinity™ systems for the core laboratory, including "Alinity c" for clinical chemistry, "Alinity i" for immunoassay diagnostics and "Alinity s" for blood and plasma screening. Abbott expects to initiate the launch of its Alinity systems in the U.S. in 2018.
Molecular Diagnostics sales increased 2.7 percent on a reported basis in the third quarter, including a favorable 1.6 percent effect of foreign exchange, and increased 1.1 percent on an operational basis. Continued growth in infectious disease testing, Abbott's core area of focus in the molecular diagnostics market, was offset by a planned scale down in other testing areas.
Point of Care Diagnostics sales increased 5.8 percent on a reported basis in the third quarter, including a favorable 0.2 percent effect of foreign exchange, and increased 5.6 percent on an operational basis as this business continues to build and expand its presence in targeted developed and emerging markets.
Established Pharmaceuticals | ||||||||||||||||||
($ in millions) | ||||||||||||||||||
% Change vs. 3Q16 | ||||||||||||||||||
Sales 3Q17 |
Reported |
Comparable Operational | ||||||||||||||||
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total |
U.S. |
Int'l |
Total | ||||||||||
Total |
-- |
1,171 |
1,171 |
n/a |
15.7 |
15.7 |
n/a |
14.3 |
14.3 | |||||||||
Key Emerging Markets |
-- |
885 |
885 |
n/a |
18.5 |
18.5 |
n/a |
18.0 |
18.0 | |||||||||
Other |
-- |
286 |
286 |
n/a |
7.6 |
7.6 |
n/a |
4.0 |
4.0 | |||||||||
% Change vs. 9M16 | ||||||||||||||||||
Sales 9M17 |
Reported |
Comparable Operational | ||||||||||||||||
U.S. |
Int'l |
Total |
U.S
|