Abbott Laboratories (NYSE: ABT) reported its first quarter financial results for fiscal year 2018. The pharmaceutical company topped estimates in both revenue and earnings. Although shares rose after the opening bell on Wednesday, shares fell by 2.7 percent mid morning after Abbott maintained its full year guidance, disappointing investors.
For the first quarter, Abbott reported revenue of $7.39 billion, increasing 16.7 percent year over year and topping Thomson Reuters’ estimates of $7.29 billion. The pharma company reported an EPS of $0.59, narrowly beating Thomson Reuters’ estimates of $0.58.
Abbott’s medical devices segment drove revenue for the quarter, as the segment increased 14.6 percent year over year to $2.74 billion. The business continued to see growth from its $25 billion purchase of St. Jude Medical.
Diagnostics saw a 58.7 percent increase to $1.83 billion. Nutrition segment increased by 7 percent and established pharmaceuticals segment increased by 9.9 percent.
"We're off to a strong start to the year as we forecasted," said Miles White, chairman and chief executive officer, Abbott. "We're particularly pleased with the continued strong growth in Medical Devices and improving performance in our Nutrition business."
Revenue across all of Abbott’s business segments, except its established pharmaceuticals segment, beat expectations. The unit reported sales of $1.04 billion, but fell short of Thomson Reuters’ estimates of $1.08 billion.
The segment sells generic drugs to emerging countries, which is why it does not have any sales within the U.S. White said the weak sales were due to a declining market growth in Russia in a conference call.
Abbott forecasts full year 2018 adjusted EPS between $2.80 to $2.90, reflecting 14 percent growth at the midpoint. For the second quarter, the company forecasts an adjusted EPS of $0.70 to $0.72.
Abbott maintained its full year guidance, which disappointed investors. Investors had hoped that the company would raise its forecast after reporting overall growth across almost all of its segments.