Abbott Laboratories (NYSE: ABT) stock continued its weak momentum falling over 1.3% on 18th October 2018 (as of 10:46 AM GMT-4; Source: Google Finance). Abbott narrowed its full-year 2018 diluted EPS guidance range from continuing operations on a GAAP basis to $1.33 to $1.35 and adjusted diluted EPS from continuing operations to $2.87 to $2.89. Regarding other aspects of the P&L, the adjusted gross margin ratio was 59.5% of sales, adjusted R&D investment was 7.3% of sales and adjusted SG&A expense was 29.7% of sales.
The company initiated a pivotal trial for Tendyne, a device that is designed to replace damaged mitral heart valves without the need for open heart surgery. Diabetes Care is another area where their technology is making a big impact, specifically FreeStyle Libre, a revolutionary glucose monitoring system that eliminates the need for routine fingersticks.
As per segment revenue, in Diagnostics sales grew 7.5% in the quarter. In Rapid Diagnostics, third quarter sales of $481 million were driven by cardiometabolic testing. In Established Pharmaceuticals or EPD, sales were led by double-digit growth in several geographies including Russia and China. In Nutrition, sales increased 6% led by strong performance in the international business. In Pediatric Nutrition, global growth was well balanced across infant and Power of Nutrition and double-digit growth broadly across the international markets. And in Adult Nutrition growth was led by the market leading Ensure and Glucerna brands, most notably internationally, where company achieved 7% growth overall in Adult Nutrition. In Medical Devices the sales grew 10% in the quarter led by double-digit growth in Electrophysiology, Structural Heart and Diabetes Care. In Electrophysiology, growth of 20% was led by double-digit growth across the heart mapping and ablation portfolio. In Diabetes Care, sales grew 40% led by FreeStyle Libre which achieved sales of over $300 million in the quarter, an increase of more than 100% versus the prior year.
The company’s third-quarter worldwide sales of $7.7 billion increased 12.1 percent on a reported basis and 7.8 percent on an organic basis. It reported diluted EPS from continuing operations under GAAP was $0.31 in the quarter the Adjusted diluted EPS from continuing operations, which excludes specified items, was $0.75.