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Earnings Projections for Abbott Laboratories in 2018

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Earnings projections

Wall Street analysts expect Abbott Laboratories (ABT) to report adjusted diluted EPS of $0.81 in the fourth quarter, which would be a YoY (year-over-year) rise of 9.5%. It’s also expected to report adjusted diluted EPS of $0.66 in the first quarter of 2019, which would be a YoY rise of 11.89%.

In its third-quarter earnings conference call, Abbott forecast adjusted EPS of $0.80–$0.82 in the fourth quarter. In the third quarter, its adjusted diluted EPS was $0.75, which was a YoY rise of 13.64%.

Wall Street analysts expect Abbott Laboratories to report adjusted diluted EPS of $2.89 in fiscal 2018, which would be a YoY rise of 15.6%. It’s expected to report adjusted diluted EPS of $3.20 in fiscal 2019, which would be a YoY rise of 10.73%.

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Margin projections

In its third-quarter earnings conference call, Abbott forecast a gross margin ratio of 59.5%, an R&D (research and development) expense-to-sales ratio of 7.5%, and an adjusted SG&A (selling, general, and administrative) expense-to-sales ratio of 30.5% for fiscal 2018.

Analysts expect Abbott Laboratories’ gross margin to be 59.39% and 59.84% for fiscal 2018 and fiscal 2019, respectively. It’s also expected to report an SG&A expense-to-sales ratio of 30.63% and 30.02% for fiscal 2018 and fiscal 2019, respectively. They expect an R&D expense-to-sales ratio of 7.34% and 7.31% for fiscal 2018 and fiscal 2019, respectively.

In the third quarter, Abbott reported a gross margin ratio of 59.5%, an adjusted R&D investment-to-sales ratio of 29.7%, and an adjusted SG&A expense-to-sales ratio of 7.3%.

In the next part, we’ll look at Abbott Laboratories’ revenue distribution across geographies. We’ll also look at the trends of its Established Pharmaceuticals division in fiscal 2018.

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