Abbott Earnings Beat As Sales Growth Lags (ABT)
Abbott Laboratories (NYSE: ABT) may be in the midst of a long-term restructuring, but the company turned in earnings growth of 11.5% to $1.45 EPS. The analyst consensus estimate was $1.44 per share according to Thomson Reuters. Where this gets…
Abbott Laboratories (NYSE: ABT) may be in the midst of a long-term restructuring, but the company turned in earnings growth of 11.5% to $1.45 EPS. The analyst consensus estimate was $1.44 per share according to Thomson Reuters. Where this gets murky is that sales were light: $10.4 billion versus a consensus target of $10.63 billion, and that was after a 4.1% sales growth rate. The company’s adjusted gross margin ratio was almost 64% due to “improved efficiencies across a number of operating divisions, product mix, and the effect of foreign exchange.”
That “foreign exchange” is a wild card right now as companies have to hedge currencies and while the U.S. dollar is so strong (for a change).
We now have full 2012 guidance of $4.95 to $5.05 in earnings per share versus a consensus estimate from Thomson Reuters of $5.02 per share.
The company says that it is on track to separate into two companies for products and pharmaceuticals.
Abbott shares are indicated up 0.2% at $56.08 against a 52-week range of $45.07 to $56.84.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.