Abbott Laboratories Conference Call Highlights

Shares of Abbott Laboratories ABT are down less than one percent following its second-quarter earnings release.

Below are some highlights and key takeaways from the company's conference call.

Growth:

• We reported second quarter ongoing earnings per share of $0.54 above our guidance range and representing growth of 17 percent.
• As expected, sales increased three percent on an operational basis.
• This was a sequential improvement from the first quarter and we're on track to accelerate sales growth in the second half of the year.
• In Nutrition we're similarly building this business for sustainable growth by continuing to invest in our global infrastructure.
• A stronger footprint in-country will allow us to be closer to our customers and work faster to create and customize new products for their needs.
• The transactions we've announced over the last several weeks proactively build and shape Abbott in emerging geographies.
• At the same time we're executing on the substantial organic growth opportunities across our company.
• In Diagnostics, sales growth was driven by continued above market performance in core laboratory diagnostics including double-digit growth in the U.S.
Results:
• Today we reported ongoing diluted earnings per share for the second quarter of $0.54.
• Includes an unfavorable impact of around one percent from foreign exchange.
• Reported sales increased approximately two percent in the quarter.
• The second quarter adjusted gross margin ratio was 55.3 percent of sales
• Sales growth in emerging markets approached eight percent on an operational basis
Guidance:
• We're ahead of expectations for the first half of this year and we're raising our full year 2014 ongoing earnings per share guidance to $2.19 to $2.29 from $2.16 to $2.26.
• Reflects double-digit growth over 2013 at the midpoint of the range
• At the same time we're actively shaping Abbott for durable long-term growth.
• Part of our growth strategy is to build critical mass and leadership positions in key emerging geographies.
• Abbott will hold leading positions in many of the largest and fastest-growing pharmaceutical markets for branded generics.
• We anticipate nutrition returning to double-digit sales growth in the second half of this year.
• We'll open three new manufacturing facilities in total this year to support will strong global near and long-term demand for adult and pediatric Nutrition.
• We continue to forecast operational sales growth in the mid-single digits for the full year 2014.
• We continue to forecast an ongoing adjusted gross margin ratio of approximately 55 percent for the full year.
• Turning to the outlook for the third quarter of 2014 we're providing for the first time, we're forecasting ongoing earnings per share of $0.59 to $0.61.
• We forecast an ongoing adjusted gross margin ratio of 55 percent of sales in the third quarter we also forecast ongoing R&D around six percent of sales.
• So in summary, second quarter sales growth improved sequentially over the first quarter of 2014.
• We're on track with our expectations for accelerated growth in the second half of the year, and we're raising our full year ongoing earnings per share guidance.