Abbott Laboratories Earnings Cheat Sheet: Yet Another Quarter of Profitability

S&P 500 (NYSE:SPY) component Abbott Laboratories (NYSE:ABT) reported its results for the third quarter. Abbott Laboratories is a pharmaceuticals health care company, whose main line of business is in the discovery, development, manufacture, and sale of a broad range of health care products. Its customers include wholesalers, hospitals and commercial laboratories.

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Abbott Laboratories Earnings Cheat Sheet for the Third Quarter

Results: Net income for Abbott Laboratories fell to $303 million (19 cents per share) vs. $890.7 million (57 cents per share) a year earlier. This is a decline of 66% from the year earlier quarter.

Revenue: Rose 13.2% to $9.82 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ABT reported adjusted net income of $1.18 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $1.17 per share. Analysts were expecting revenue of $9.65 billion.

Quoting Management: “Strong performance across our businesses allowed Abbott to continue to deliver superior results,” said Miles D. White, chairman and chief executive officer, Abbott. “We also experienced strong growth in emerging markets and success in our broad-based pipeline, including several new product approvals, regulatory submissions and clinical trial initiations.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by one cent in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9% to $9.62 billion in the second quarter. The figure rose 17.4% in the first quarter from the year earlier and climbed 13.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

While the company has been profitable for the last nine quarters, income has fallen year over year by an average of 15.1% over the past five quarters. The quarter hit the hardest was the most recent quarter, that saw a 66% drop.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $1.43 per share, a drop from $1.44. Over the past three months, the average estimate for the fiscal year has climbed from $4.61 per to share to $4.64.

Competitors to Watch: Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ), Novartis AG (NYSE:NVS), Roche Holding Ltd. (RHHBY), GlaxoSmithKline plc (NYSE:GSK), Bristol Myers Squibb Co. (NYSE:BMY), Merck & Co., Inc. (NYSE:MRK), Medtronic, Inc. (NYSE:MDT), Boston Scientific Corp. (NYSE:BSX), and Sanofi-Aventis SA (NYSE:SNY).

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(Source: Xignite Financials)

 

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