(Reuters) — Abbott (NYSE:ABT) reported a better-than-expected adjusted quarterly profit, driven by its branded generics, international nutrition and diagnostics divisions.
Sales in the company’s division that sells branded generic drugs in emerging markets jumped 31.8% in the 1st quarter, even after including the impact of the strong dollar.
Abbott, whose shares were up 1.2% in premarket trading, is partly shielded from the dollar’s strength because it has large manufacturing operations in Europe, meaning it has benefited from the euro’s weakness against the U.S. currency.
About 70% of the company’s revenue came from outside the United States in the quarter.
Revenue in Abbott’s nutrition division, whose products include Similac infant formula and Ensure beverages for adults, increased 2.3% to $1.66 billion. The business, Abbott’s biggest, accounted for 34% of total revenue.
The company’s net earnings from continuing operations jumped to $529 million, or 35¢ per share, in the quarter ended March 31, from $224 million, or 14¢ per share, a year earlier.
Abbott sold its developed-markets branded generics business to Mylan NV and its animal health business to Zoetis Inc last year.
Excluding items, Abbott earned 47¢ per share.
Revenue rose 3% to $4.9 billion.
Analysts on average had expected a profit of 42¢ per share and revenue of $4.85 billion, according to Thomson Reuters I/B/E/S.
Abbott left its full-year forecast for adjusted earnings at $2.10 to $2.20 per share.
Up to Tuesday’s close of $47.12, Abbott’s shares had risen 4.8% this year.