Mixed Guidance From Abbott Labs - TheStreet

Mixed Guidance From Abbott Labs

The company's second-quarter earnings match Wall Street estimates.
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Abbott Laboratories

(ABT) - Get Report

said sales surged in the second quarter, helped by growth in U.S. pharmaceutical revenue and favorable foreign exchange rates, but overall profits fell after the company factored in one-time charges.

Worldwide sales rose 9.5% to $4.72 billion from $4.32 billion in the second quarter of 2002. Sales in U.S. markets were $2.79 billion, up 7.2% from a year ago, and international sales climbed 12.9% to $1.93 billion.

Earnings under generally accepted accounting principles fell to $246.6 million, or 16 cents a share, from $592.3 million, or 38 cents a share. Excluding items in both quarters, earnings rose to $819.8 million, or 52 cents a share, from $771 million, or 49 cents a share.

Analysts polled by Thomson First Call were looking for earnings of 52 cents, before charges.

U.S. pharmaceutical sales rose 26.8% in the quarter, driven by strong growth of Depakote, Flomax, TriCor, Biaxin, Kaletra and Omnicef. Worldwide Humira sales totaled $57 million, including $54 million in the U.S. Abbott expects Humira sales to total more than $250 million in 2003.

Abbott maintained its earnings guidance for the year of $2.20 to $2.25 a share, excluding charges. Analysts are calling for $2.21. Including one-time items, the company projected earnings of $1.83 to $1.88.

However, third-quarter earnings could be below expectations. The company forecast a profit, before charges, of 52 cents to 54 cents a share, while analysts are targeting 55 cents. On a GAAP basis, earnings for the third quarter will be 51 cents to 53 cents a share, Abbott said.