Abbott Laboratories, the largest maker of heart stents and adult nutritional beverages, reported third-quarter earnings that topped analysts’ estimates as sales of its generic drugs rose in emerging markets.
Profit excluding one-time items was 54 cents a share, compared with the 53-cent average of analysts’ estimates compiled by Bloomberg. Revenue increased 1.4 percent to $5.2 billion. The company narrowed its 2015 adjusted earnings forecast to $2.14 to $2.16 a share, from $2.10 to $2.20.
Sales of generic drugs in emerging markets rose 24.6 percent to $961 billion, with India, Russia, Brazil, China and parts of Latin America fueling the growth, Abbott said. The Abbott Park, Illinois-based company sold its generic drug business in Europe and other established markets to Mylan NV for stock valued at about $5.3 billion in February, retaining the business in the developing world.
Revenue from nutritional products, the company’s biggest division, rose 0.2 percent to $1.79 billion. Medical devices such as blood glucose monitors, stents used to prop open clogged arteries and the catheters used to implant them generated $1.23 billion in the quarter, a decrease of 7.4 percent from a year earlier. Sales of diagnostic tests decreased 2.1 percent to $1.16 billion.
Abbott, which had about $11.2 billion in cash and short-term investments on June 30, completed its acquisition of Tendyne Holdings Inc. and acquired an option to buy Cephea Valve Technologies, both closely held companies working on mitral valve technology, during the quarter.
The company’s shares fell 1 percent to $41.74 on Tuesday in New York. The stock has dropped 7.3 percent this year.