Abbott Labs Earnings Approach

S&P 500 (NYSE:SPY) component Abbott Laboratories (NYSE:ABT) will unveil its latest earnings on Wednesday, October 17, 2012. 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.

Abbott Laboratories Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.28 per share, a rise of 8.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.27. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.28 during the last month. For the year, analysts are projecting profit of $5.06 per share, a rise of 8.4% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of $1.23 a share versus the estimate of profit of $1.22 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit fell 11.2% to $1.72 billion ($1.08 a share) from $1.94 billion ($1.23 a share) the year earlier, but exceeded analyst expectations. Revenue rose 2% to $9.81 billion from $9.62 billion.

Stock Price Performance: Between July 18, 2012 and October 11, 2012, the stock price rose $3.49 (5.3%), from $65.93 to $69.42. The stock price saw one of its best stretches over the last year between March 7, 2012 and March 20, 2012, when shares rose for 10 straight days, increasing 7.4% (+$4.14) over that span. It saw one of its worst periods between July 17, 2012 and July 24, 2012 when shares fell for six straight days, dropping 3.8% (-$2.52) over that span.

Analyst Ratings: There are mostly holds on the stock with 12 of 18 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 13.2% in the third quarter of the last fiscal year, 4.1% in the fourth quarter of the last fiscal year and 4.6% in the first quarter before increasing again in the second quarter.

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 12.3% in the fourth quarter of the last fiscal year and 43.8% in the first quarter before dropping in the second quarter.

Wall St. Revenue Expectations: Analysts are projecting a rise of 0.9% in revenue from the year-earlier quarter to $9.91 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.53 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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