Analysts’ estimates and company guidance
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.
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.
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.
In the next part of this series, let’s discuss Abbott Laboratories’ latest stock performance.