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Abbott (ABT) Beats on Earnings and Revenues in Q1

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Synchrony (SYF) Q3 Earnings and Revenues Beat Estimates

Synchrony (SYF) delivered earnings and revenue surprises of 13.75% and 0.50%, respectively, for the quarter ended September 2018. Do the numbers hold clues to what lies ahead for the stock?

Abbott Laboratories ABT is an Illinois-based company focused on bringing a diverse line of healthcare products to the market.

Abbott reports its diversified business in four segments – namely Established Pharmaceuticals Division (EPD), Medical Devices, Diagnostics and Nutrition. The company has reshaped its portfolio through strategic acquisitions/divestitures in recent times.

In Feb 2015, Abbott completed the sale of its branded generics pharmaceuticals business in developed markets. Realignment of the EPD division through acquisitions in Latin America and Russia, along with business divestitures in developed markets, has positioned the company well for the coming quarters.

Abbott Laboratories Price and EPS Surprise

Abbott Laboratories Price and EPS Surprise | Abbott Laboratories Quote

The company rides on its strong EPD business and strategic buyouts. In 2017, Abbott completed the acquisition of Alere, which is expected to enhance the company’s stance in healthcare. However, foreign currency headwinds raise major concerns for the company, since a considerable percentage of Abbott’s revenues come from outside the United States.

Abbott has an impressive track record as the company beat estimates in the last four trailing quarters with an average positive earnings surprise of 4.5%.

Currently, Abbott has a Zacks Rank #3 (Hold), but that could definitely change following the company’s first quarter 2018 earnings report which was just released. (You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here) We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Abbott’ first quarter 2018 adjusted earnings per share from continuing operations of 59 cents outpaced the Zacks Consensus Estimate by a penny.

Revenues: Abbott posted first quarter worldwide revenues of $7.39 billion beating the Zacks Consensus Estimate for revenues by 1.8%.

Key Stats: Worldwide revenues increased by 6.9% on organic basis and by 16.7% on year-over-year basis. The revenues for Nutrition segment came in at $1.76 billion, up 7% year over year. Diagnostics segment reported sales worth $1.84 billion, up 58.7% on year-over-year basis. Established Pharmaceuticals revenues were $1.04 billion, up, 9.9% from the year-ago quarter. Medical Devices revenues came in at $2.74 billion, up 14.6% from the year-ago quarter.

Major Factors: The company expects full year earnings per share to be in the range of $2.80 to $2.90, reflecting 14% growth at midpoint. Several new products launched by the company have contributed to a strong growth. Furthermore, in January, Abbott announced U.S. FDA approval of for magnetic resonance (MR)-conditional labeling for its Quadra Assura and Quadra Assura MP devices.

Stock Price: Following the earnings release, share prices decreased by 1.4% during the pre-market trading session.

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