Abbott Laboratories (ABT) has exceeded analysts’ earnings estimates for the last few quarters. ABT stock is usually impacted by any deviation from the actual results of analysts’ estimates. In 4Q16, Abbott met analysts’ EPS (earnings per share) estimate of $0.65 as well as the revenue estimate of ~$5.3 billion. ABT stock gained around 1.6% after the earnings results announcement on January 25, 2017.
According to analyst estimates, the company’s 1Q17 EPS are expected at ~$0.43. Abbott expects to register adjusted EPS of $0.42–$0.44. Earnings are expected to be impacted by the recently closed acquisition of St. Jude Medical. To learn more about this deal, see Huge Deal in the Healthcare Space: Abbott Buys St. Jude Medical. Abbott Laboratories accounts for ~8.2% of the iShares US Medical Devices (IHI). IHI is a focused medical device industry ETF.
Profit margin estimates
For 1Q17, Wall Street analysts project that Abbott Laboratories’ gross profit margin should rise to $3.6 billion. The estimate represents ~59.4% of its total revenue, which is higher than the company’s margin in the previous quarter.
Abbott’s R&D (research and development) investment and SG&A (selling, general, and administrative) expenses are expected to come in at about 8.1% and 33.0% of total sales, respectively. The company expects to generate strong earnings and sales from its recent product launches.
In their most recent quarters, Abbott’s peers Stryker (SYK), Becton Dickinson (BDX), and Medtronic (MDT) are expected to report YoY (year-over-year) rises in EPS of 15.3%, 2.7%, and 3.1%, respectively.