Decoding Abbott Laboratories’ Latest Fiscal 2017 Guidance
During its 3Q17 earnings release on October 18, 2017, Abbott Laboratories (ABT) provided an updated guidance for fiscal 2017 and 4Q17.
Abbott Laboratories (ABT) has reported a strong earnings performance for the past few quarters.
On October 3, 2017, Abbott announced the completion of its acquisition of Alere, which has had troubles since the initial announcement in February 2016.
Abbott’s Medical Devices segment has products for rhythm management, heart failure, electrophysiology, structural heart diseases, neuromodulation, and more.
Abbott Laboratories (ABT) registered Diabetes sales of ~$373 million in 3Q17, which represented ~14.4% of its total Medical Devices segment sales.
Abbott (ABT) registered sales growth of ~5% in its Diagnostics business in 3Q17. The segment’s sales were driven by a strong performance outside the US.
The Indian government’s implementation of a new GST system came into effect on July 1, 2017, and hit Abbott’s Established Pharmaceuticals Division sales.
Abbott Laboratories (ABT) registered sales of ~$6.8 billion for 3Q17, which represents YoY (year-over-year) sales growth of ~28.8% on a reported basis.
Abbott registered strong 3Q17 results, surpassing estimates for both sales and earnings and reporting healthy growth across all of its business segments.
Intel has appointed AMD’s Radeon Technology Group chief architect, Raja Koduri, as the chief architect and senior vice president of its new group.
This would be the first time since 1980 that AMD and Intel have entered into a strategic business collaboration to develop products.
Intel (INTC), which was regarded by Jeffries as the biggest loser of the fourth technology transition, now appears to be turning the tables and catching up.
On November 20, 2017, Abbott Laboratories (ABT) stock closed at $55.3. The company reported its 52-week high of $56.7 on October 23, 2017.
The combination of Broadcom (AVGO) and Qualcomm (QCOM) would likely create a company with $41 billion in annual revenues, excluding NXP Semiconductors.
The first and the easiest thing that Broadcom could do now is talk with Qualcomm’s board and negotiate a higher price.
In just one week, Qualcomm’s board rejected Broadcom’s $70-per-share offer on the grounds that it undervalued the stock and brought regulatory uncertainty.
Qualcomm (QCOM) rejected Broadcom’s (AVGO) takeover bid, in part, because there’s uncertainty surrounding the deal getting regulatory approval.
QCOM shareholders appear to be interested in AVGO offer, though the former’s board has unanimously rejected the latter’s first acquisition bid.
When the rumor about Broadcom’s (AVGO) takeover offer started, Qualcomm’s (QCOM) stock rose ~10% to ~$65.
Johnson & Johnson (JNJ) has seen a few disappointing quarterly performances, but on October 17, when JNJ announced its 3Q17 results, the stock gained 3.4%.