Good Nutrition Helps Abbott Laboratories (ABT)’s Q2 Earnings Grow

The company’s nutrition business segment shows no signs of slowing down. Over the last quarter, Abbott Laboratories (NYSE:ABT)launched 24 new nutritional products. Pediatric product sales in emerging markets should drive this segment for the foreseeable future.

Diagnostics should also remain solid, especially with continued growth in the area of infectious diseases. Abbott received U.S. regulatory approval last month for a hepatitis-C genotyping test that should contribute to the company’s expansion in infectious diseases.

I don’t expect a quick turnaround for the Established Pharmaceuticals segment. However, the company is taking the long-term view by building its business in 14 key emerging markets. Over time, these efforts could pay off.

Neither do I predict any great news for Abbott Laboratories (NYSE:ABT)’s Medical Devices segment in the near future. None of the three primary markets for the segment experienced sales growth last quarter. Even with the acquisition of IDEV Technologies and higher sales for the XIENCE Xpedition drug-eluting stent, I’m not expecting much from its medical devices this year.

Aside from weakness in established pharmaceuticals and medical devices, my only complaint with Abbott is that I wish its dividend yield was higher than 1.6%. AbbVie took Humira’s profits and sports a much higher yield of 3.6%.

Abbott Laboratories (NYSE:ABT)’s shares traded higher by more than1% after the quarterly results were announced today. The stock has taken a breather for the past six weeks after gaining 20% year-to-date by May. The relatively good results from the second quarter could help Abbott climb back to its previous highs for the year.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.