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Alere Inc. is up 10.5% in afternoon trading on Friday after analysts saw an increased likelihood that the company’s $5.8 billion acquisition by Abbott Laboratories (ABT - Free Report) would close.
Based in Waltham, MA, Alere focuses on products and services for infectious diseases, cardiology, oncology, drugs of abuse, and women’s health.
Abbott first announced its deal to acquire the company in the beginning of February. However, the process had been set back by Alere’s choice to delay the filing of their annual 10-K report for 2015, because it was looking into the timing of revenue recognition in Africa and China during 2013, 2014, and the first three quarters of 2015.
Alere plans to file its 2015 financials as soon as possible, but does not believe the revisions will make a material impact on the data, although according to their official statement did state that “the cumulative effect of reflecting these misstatements in the current year would be material to the year ended December 31st, 2015.”
The company also released preliminary revenue numbers, in which they indicated revenue of between $2.45 billion and $2.48 billion for 2015. Q1 2016 preliminary revenue is between $573 million and $579 million. Alere also reported preliminary net income of between $10 million to $25 million for 2015, along with between -$8 million and $2 million for Q1 2016.
As our team noted, Abbott made the deal with Alere in order to strengthen its presence and leadership in the global diagnostics market. This is not the only deal that Abbott has made recently, having also bought St. Jude hospital for $25 billion in late April.
Analysts have not revised earnings estimates for Alere in the last sixty days. Current estimates stand at earnings of $0.54 per share this quarter, along with earnings of $2.08 per share this fiscal year.
Alere currently sits at a Zacks Rank #3 (Hold).
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Why is Alere Inc. (ALR) up Today?
Alere Inc. is up 10.5% in afternoon trading on Friday after analysts saw an increased likelihood that the company’s $5.8 billion acquisition by Abbott Laboratories (ABT - Free Report) would close.
Based in Waltham, MA, Alere focuses on products and services for infectious diseases, cardiology, oncology, drugs of abuse, and women’s health.
Abbott first announced its deal to acquire the company in the beginning of February. However, the process had been set back by Alere’s choice to delay the filing of their annual 10-K report for 2015, because it was looking into the timing of revenue recognition in Africa and China during 2013, 2014, and the first three quarters of 2015.
Alere plans to file its 2015 financials as soon as possible, but does not believe the revisions will make a material impact on the data, although according to their official statement did state that “the cumulative effect of reflecting these misstatements in the current year would be material to the year ended December 31st, 2015.”
The company also released preliminary revenue numbers, in which they indicated revenue of between $2.45 billion and $2.48 billion for 2015. Q1 2016 preliminary revenue is between $573 million and $579 million. Alere also reported preliminary net income of between $10 million to $25 million for 2015, along with between -$8 million and $2 million for Q1 2016.
As our team noted, Abbott made the deal with Alere in order to strengthen its presence and leadership in the global diagnostics market. This is not the only deal that Abbott has made recently, having also bought St. Jude hospital for $25 billion in late April.
Analysts have not revised earnings estimates for Alere in the last sixty days. Current estimates stand at earnings of $0.54 per share this quarter, along with earnings of $2.08 per share this fiscal year.
Alere currently sits at a Zacks Rank #3 (Hold).
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