What to Expect from Abbott Laboratories’ 4Q17 Results

Analysts’ estimates and company guidance

The SPDR S&P 500 ETF (SPY) has ~0.43% of its total portfolio holdings in Abbott Laboratories (ABT). The company will announce its 4Q17 earnings results on January 24, 2018.

In fiscal 3Q17, Abbott Laboratories registered adjusted dilutive EPS (earnings per share) of $0.66 compared to the Wall Street analyst estimate of $0.65 per share and the company’s guidance range of $0.64 to $0.66 per share. The results came in ahead of Wall Street estimates and at the high end of the company’s guidance range. ABT stock gained ~2% on the day the company announced its 3Q17 results as compared to the previous day’s closing price.

What to Expect from Abbott Laboratories’ 4Q17 Results

For 4Q17, Wall Street analysts’ estimate adjusted EPS of $0.73, whereas the company’s EPS guidance range is $0.72–$0.74. For full fiscal 2017, adjusted EPS is expected to be $2.50. Abbott Laboratories has provided an EPS guidance range of $2.48–$2.50. For detailed company guidance for fiscal 2017, read Decoding Abbott Laboratories’ Latest Fiscal 2017 Guidance.

Margin estimates

In 4Q17, Abbott Laboratories expects to register a gross profit margin of 59.5% of the company’s total sales. In the previous fiscal 3Q17, the company’s gross profit margin was reported to be ~58.2% of the total sales of the company.

The investment in R&D (research and development) is estimated to continue to be ~7.5% of the company’s total sales in fiscal 4Q17. However, the company’s adjusted SG&A (selling, general, and administrative) expenditure in 4Q17 is expected to marginally increase to ~30% of the company’s total sales as compared to 29% in the previous quarter.

Peers Becton Dickinson (BDX), Medtronic (MDT), and Baxter (BAX) are expected to report YoY (year-over-year) adjusted EPS growth of 3.3%, 4.5%, and 3.4%%, respectively, in their most recent quarters.

In the next part of this series, let’s discuss Abbott Laboratories’ latest stock performance.