Profits, Sales Up at Abbott Labs

Abbott Laboratories(ABT Quote - Cramer on ABT - Stock Picks) reported slightly higher fourth-quarter earnings, helped by higher overall sales but hurt by previously announced restructuring charges.

The diversified health care products maker also forecast higher 2003 earnings, albeit just under Wall Street expectations.

On a GAAP basis, Abbott said fourth-quarter earnings totaled $627 million, or 40 cents a share, compared to earnings of $613.5 million, or 39 cents a share, in the year-ago quarter. This includes about $239 million, or 15 cents a share, in previously announced restructuring expenses, as well as noncash writedowns for certain equity investments.

Excluding the charges, Abbott earned $866 million, or 55 cents a share, in the fourth quarter. Analysts were looking for Abbott to earn 56 cents a share, according to the consensus estimate compiled by Thomson Financial/First Call.

Total revenue in the quarter rose just under 9% to $4.84 billion.

When Abbott received earlier-than-expected approval of its new rheumatoid arthritis drug Humira in late December, the company said higher spending for the drug's launch would impact its 2003 outlook. Thursday, Abbott forecast 2003 earnings in the range of $2.20 to $2.25 per share. On the high end, that's a penny below Wall Street's current consensus estimate.

For the first quarter, Abbott says it will post profits in the range of 50 to 52 cents per share. Analysts are currently expecting a profit of 57 cents per share.

If Abbott hits the high end of its 2003 forecast, earnings would grow 9%, the same rate at which they rose in 2002. Abbott earned $2.06 per share in 2002, compared to $1.88 per share in 2001.

Abbott's shares closed at $37.95 Wednesday. The last cross on the Island ECN Thursday morning was at $37.59.