Abbott Labs (ABT) Q3 Earnings: What's Ahead For The Stock?
Zacks Investment Research | Oct 12, 2016 09:58PM ET
Abbott Laboratories (NYSE:ABT) is scheduled to report third-quarter 2016 results before the opening bell on Oct 19.
Last quarter, Abbott Labs delivered a positive earnings surprise of 3.77%. Let’s see how things are shaping up for this quarter.
Factors at Play
Abbott Labs operates under four segments – Established Pharmaceuticals Division (EPD), Medical Devices, Diagnostics and Nutrition. Continued outperformance at the Medical Devices and Diagnostics businesses should drive sales in the third quarter.
The Diagnostics segment should see persistent above-market performance in Core Laboratory and Point of Care Diagnostics. The second quarter launch of AlinIQ should also add to the company’s top line. Segment sales are anticipated to grow in the mid single digits in the third quarter.
Sales in the Nutrition business are projected to increase in the low-to-mid single-digit range in the to be reported quarter. Continued uptake of the recently launched products in Pediatric Nutrition should bode well.
At EPD, sales are expected to grow in the high single digits in the third quarter. Realignment of the division through acquisitions in Latin America and Russia, along with business divestitures in developed markets, has positioned the company advantageously for the coming quarters.
At Medical Devices, Vascular is expected to grow in the low single digits in the third quarter, while Diabetes sales are expected to increase in the high-single digit band. Medical Optics is envisioned to improve in the low-to-mid single-digit range. The Medical Devices segment got a significant boost with the Jul 2016 FDA approval of Absorb bioresorbable stent and TECNIS Symfony intraocular lenses.
For the third quarter, earnings have been estimated to be in the range of 57 to 59 cents per share. Operational sales growth at the current exchange rates is expected to be in the mid-single digits. Third-quarter sales are, however, expected to be hurt by negative currency impact of around 1.5%.
We expect sluggish growth in the Venezuelan market to persist in the third quarter. During the quarterly call, investor focus should remain on the company’s performance and sales ramp-up of the newly launched products.
Surprise History
Abbott Labs has an impressive track record. The company surpassed estimates in each of the trailing four quarters with an average earnings surprise of 3.11%.
ABBOTT LABS Price and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.