Abbott (NYSE:ABT) reported slower sales for its medical device operation but still logged sales growth during the 1st quarter.
In its 1st earnings release since it split off its branded pharmaceuticals division as AbbVie (NYSE:ABBV), Abbott posted profits of $544 million, or 34¢ per share, on sales of $5.38 billion for the 3 months ended March 31.
Excluding results from the discontinued pharma operation, net income during the same period last year was $351 million, meaning Abbott’s profits grew 55% on sales growth of 1.8% over Q1 2012.
But worldwide medical device sales were down 4.6%, led by a 7.7% decrease in vascular sales. Diabetes care sales were flat and sales for the Chicago-area healthcare giant’s medical optics business were up 1.8%
Abbott said the slide in its vascular sales was due to declines in the U.S. "impacted by pricing pressure and a decline in procedures due to market conditions, as well as the expected decline of certain royalty revenues," according to a press release. International vascular growth was driven by emerging markets and new products including its Xience Xpedition drug-eluting coronary stent and its Absorb bioresorbable stent.
"Strong performance in Nutrition and Diagnostics, as well as overall results in emerging markets, led our sales growth this quarter," chairman & CEO Miles White said in prepared remarks. "We had significant new product and geographic expansion activity during the quarter that positions Abbott well for continued growth."
Abbott maintained its full-year guidance, saying it expects Q2 EPS of 27¢-29¢, with adjusted EPS at 43¢-45¢. Full-year EPS are pegged at $1.39 to $1.45 and adjusted EPS at $1.98 to $2.04.
ABT shares were up 2.4% to $37.26 as of about 11 a.m. today.
