Humira and Nutrition Sales Lift Abbott 3Q Profit

Abbott Laboratories said Wednesday it beat its own expectations for the third quarter as sales of its drug Humira continued to climb, along with sales of medical products and nutritional formula for children.

The North Chicago company said strong sales of Humira, an injection for rheumatoid arthritis and other inflammatory diseases, made up for weaker sales of other drugs. Humira revenue climbed 24 percent to $1.49 billion, and nutritional sales grew 10 percent to $1.39 billion.

The better-than-expected results for its lead product sent Abbott shares higher in morning trading as the company raised its earnings outlook for the year. Abbott forecast a profit of $3.70 to $3.72 per share, up from $3.65 to $3.70 per share. Analysts expect $3.69 per share, according to Thomson Reuters.

"It looks like Humira continues to grow strongly in the U.S. and we're confident, and obviously we put that into our thinking when we raised the number for the year," said Chief Financial Officer Tom Freyman in a conference call.

Analysts and investors have been concerned growth of Humira revenue would slow in the face of market saturation and competition from new products from Johnson & Johnson and other companies. Abbott relies on Humira for roughly 35 percent of its revenue.

"Abbott fundamentals and key investment debates appear answered on the surface," wrote Morgan Stanley's David Lewis, in an investment note. "We expect investors to be encouraged by quarterly results."

For the quarter, Abbott's profit rose 16 percent, to $1.43 billion, or 95 cents per share, from $1.24 billion, or 79 cents per share. Excluding one-time costs, Abbott earned 92 cents per share, 2 cents above Wall Street estimates. Revenue grew 4 percent, to $7.76 billion from $7.5 billion.

Abbott's positive results came one day after its rival Johnson & Johnson reported a disappointing 5 percent drop in revenue for the third quarter. The company, the world's most diversified health health-products maker, blamed the performance on generic competition to its drugs and reduced spending on consumer items like contact lenses.