Abbott Laboratories (ABT) Q4 2015 earnings summary

Executive summary

• FY15 net sales were $20.405B; operating earnings rose to $2.867B from $2.599B, while operating margin expanded 120 bps.

• Net earnings reached $4.423B, including a $1.752B after-tax gain on business dispositions; earnings from continuing operations were $2.606B.

Financial highlights

• Net sales increased to $20.405B from $20.247B; gross profit margin rose to 54.2% from 51.7%.

• Operating earnings were $2.867B versus $2.599B; diluted EPS from continuing operations was $1.72, and total diluted EPS was $2.92.

• Cash from operating activities was $2.966B versus $3.675B; 2015 was affected by the developed-markets generics divestiture and higher pension contributions.

• Reported net earnings included $1.752B after-tax disposition gains; excluding that gain, net earnings from discontinued operations were $65M.

Outlook and guidance

• 2016 priorities include expanding nutrition products in emerging markets, growing Established Pharmaceuticals, advancing next-generation diagnostics, and increasing MitraClip and Absorb penetration.

• Planned R&D spending is approximately 6%–7% of sales annually; 2016 pension contributions are expected to be approximately $576M.

• The pending Alere acquisition is expected to strengthen point-of-care diagnostics; closing depends on shareholder and regulatory approvals and customary conditions.