Abbott Laboratories 3Q17 Earnings: What's Expected

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Abbott Laboratories 3Q17 Earnings: What's Expected PART 2 OF 4

Inside Abbott’s 3Q17 Revenue Expectations: Hit or Miss?

ABT’s revenue estimates

Abbott Laboratories (ABT) has scheduled its 3Q17 earnings release for October 18, 2017. According to the Wall Street estimates, the company will report 3Q17 revenues of ~$6.71 billion, representing a YoY (year-over-year) growth of ~26.7%.

Abbott Laboratories reported revenues of $6.64 billion in 2Q17, exceeding the analysts’ estimates. ABT stock gained more than 4% the day of its 2Q17 results release, on July 20, 2017. (For a brief overview of Abbott’s 2Q17 results, read Abbott Laboratories: 2Q17 Earnings Beat Analysts’ Estimate.)

Inside Abbott’s 3Q17 Revenue Expectations: Hit or Miss?

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In 3Q17, Abbott expects to register operational sales growth in the mid-single digits. Currency headwinds are expected to have a negative impact of ~0.50% on its sales in 3Q17.

Peers Thermo Fisher Scientific (TMO), Medtronic (MDT), and Stryker (SYK) are estimated to report YoY revenue growth of around 12%, -6%, and 4.8%, respectively, for their recent quarters.

For diversified exposure to Abbott Laboratories, investors can consider investing in the iShares Russell 1000 Value ETF (IWD), which has ~0.75% of its total holdings in Abbott Laboratories.

Key developments

Abbott closed its acquisition of Alere on October 3, 2017. During 3Q17, Abbott Laboratories entered into a number of partnerships and collaborations to expand and advance its market presence, and the company received regulatory approval in Russia and the Netherlands for its oral medication dydrogesterone.

Another key development in 3Q17 was the FDA’s (US Food and Drug Administration) approval of Abbott’s Freestyle Libre for commercial use. For more, read “Abbott’s Breakthrough CGM Device Freestyle Libre Wins FDA Approval.”

In 3Q17, this device received reimbursement approval in the UK and Japan, expanding the list of countries with full or partial reimbursement approval to 16 countries. Abbott Laboratories has also broadened its heart failure portfolio with the US approval of the Heartmate 3 system, which is expected to be a key growth driver going forward.

Next, we’ll discuss Abbott Laboratories’ 3Q17 earnings estimates.


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