Abbott’s World Is Flat: Profits Are Unchanged
Make a commentBy Ed Silverman // October 17th, 2007 // 8:46 am
But that’s only because of those special charges. The drug and device maker did report sharply higher sales that were up 14.4 percent to $6.4 billion, about $100 million higher than Wall Street expected. The biggies: the Humira arthritis drug; the Kaletra AIDS med; and the TriCor and Niaspan cholesterol treatments.
Earnings came in at $717 million, or 46 cents per share, compared with $716 million, or 46 cents per share, a year ago, but costs associated with the buyout of Guidant’s vascular stent business offset the 14 percent rise in revenue. Excluding special items, Abbott earned 67 cents per share, beating Wall Street estimates of 66 cents, according to the Associated Press.
Abbott also raised the low-end of its full-year guidance, now forecasting profit between $2.82 and $2.84 per share, up from previous estimates of $2.80 to $2.84. The outlook excludes about 44 cents per share in costs, ranging from the Guidant unit acquisition to cost-cutting initiatives and inventory writedowns. Here’s the press release with the breakdown.