Abbott Laboratories (ABT – Analyst 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. In Feb 2015, Abbott completed the sale of its branded generics pharmaceuticals business in developed markets.
Abbott Labs is expanding its pediatric nutrition portfolio through new product launches in the U.S. and the ex-U.S. markets. 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.
Unfavorable movement in foreign currency rates is also 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 5.5%.
Currently, Abbott Labs has a Zacks Rank #5 (Strong Sell). We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Abbott Labs beat on earnings in fourth-quarter 2015 by a penny. Our consensus called for EPS of 61 cents per share, while the company reported EPS of 62 cents (from continuing operations excluding one-time items).
Revenue: Abbott Labs posted revenues of $5.2 billion was short of our expectations of $5.3 billion.
Key Stats: Foreign currency exchange rate movements negatively impacted sales by 8%. The company expects 2016 earnings per share in the range of $2.10 per share to $2.20 per share (excluding specified items).
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