Abbott Laboratories (ABT) is an Illinois-based company focused on bringing a diverse line of healthcare products to the market.
Abbott reports its diversified business in four segments – namely Established Pharmaceuticals Division (EPD), Medical Devices, Diagnostics and Nutrition. In Feb 2015, Abbott completed the sale of its branded generics pharmaceuticals business in developed markets.
Abbott is expanding its pediatric nutrition portfolio through new product launches in the U.S. and the ex-U.S. markets (including the launch of a non-GMO labeled formula, Similac Advance, in the U.S. and the organic version of an infant formulation, Eleva, in China). While the company is working on growing the adult nutrition business in the priority international markets, performance of this segment remains a matter of concern, mainly due to competition in the U.S. and low demand at the institutional level.
Unfavorable movement in foreign currency rates is also affecting the top line adversely.
Abbott has an impressive track record as the company beat estimates in the last four trailing quarters with an average positive earnings surprise of 5.91%.
Currently, Abbott has a Zacks Rank #4 (Sell). We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Abbott beat on earnings in third-quarter 2015 by a penny. Our consensus called for EPS of 53 cents per share, while the company reported EPS of 54 cents (from continuing operations excluding one-time items).
Revenue: Abbott posted revenues of $5.2 billion, surpassing our expectations of $5.1 billion.
Key Stats: Strong performance by international nutrition and established pharmaceutical businesses positively impacted results. Excluding the impact of 2014 acquisitions and currency fluctuation, sales in emerging market grew in double-digits on an organic basis. The company narrowed its full-year 2015 earnings guidance to $2.14 per share – $2.16 per share (excluding specified items) from $2.10 per share – $2.20 per share. The mid-point of this range remains altered.
Check back later for our full write up on this Abbott earnings report later!
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