Abbott (ABT - Free Report) is an Illinois-based company focused on bringing a diverse line of healthcare products to the market.
Abbott Labs reports its diversified business in four segments – namely Established Pharmaceuticals Division (EPD), Medical Devices, Diagnostics and Nutrition. The company has reshaped its portfolio through strategic acquisitions/divestitures in recent times. It has also been taking strategic steps to expand its footprint in the growing geographies and investing in R&D, which has resulted in numerous new product launches across its businesses.
In Feb 2015, Abbott completed the sale of its branded generics pharmaceuticals business in developed markets. Realignment of the EPD division through acquisitions in Latin America and Russia, along with business divestitures in developed markets, has positioned the company well for the coming quarters. However, unfavorable movement in foreign currency rates is affecting the top line adversely.
Abbott Labs has an impressive track record as the company beat estimates in the last four trailing quarters with an average positive earnings surprise of 4.6%.
Revenues: Abbott Labs posted third quarter revenues of $6.82 billion surpassing behind the Zacks Consensus Estimate for revenues of $6.71 billion.
Key Stats: Worldwide Nutrition sales increased 0.8% on a reported basis in the third quarter to $1.76 billion while worldwide Diagnostics sales increased 5.4% on a reported basis to $1.27 billion while total Established Pharmaceuticals sales increased 15.7% on a reported basis to $1.17 billion. Revenues of Worldwide Medical Devices increased 98.2% on a reported basis to $2.59 billion.
Major Factors: Per management, Abbott’s third quarter results reflect a strong performance. The company is well positioned to achieve the upper end of the initial full-year EPS guidance range. Management narrowed its full-year 2017 EPS guidance which ranges from $2.48 to $2.50 now.The company has received many FDA approvals recently.
Stock Price: Following the earnings release, share prices rose 1.7% during the pre-market trading session.
Check back later for our full write up on this Abbott earnings report later!
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