Abbott Laboratories (ABT): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


Abbott reported second quarter 2014 earnings of $0.54 per share, above the Zacks Consensus Estimate of $0.51. Quarterly sales of $5.6 billion were just above the Zacks consensus Estimate. Sales were hurt by foreign exchange movements during the quarter. We were disappointed by the disruption in international markets of the Nutrition business, which was one of the fastest-growing businesses for Abbott. Nevertheless, Abbott is launching a number of new products globally to recapture its lost market share in the nutrition business. The second half of 2014 should see an improved performance by the company. The improved earnings outlook for 2014 is encouraging. We believe that Abbott is extremely diversified with its presence in nutrition, diagnostics, generic pharmaceuticals and medical devices. We have maintained our Neutral recommendation.


Abbott Laboratories discovers, develops, manufactures and sells a diversified line of healthcare products. On Jan 1, 2013, Abbott separated its pharmaceutical business into a new company called AbbVie. The research-based pharmaceutical company, AbbVie, comprises proprietary pharmaceuticals and biologics.

Abbott's shareholders received one share of AbbVie common stock on Jan 1, 2013 for every one share of Abbott common shares held as of the close of business on Dec 12, 2012. Abbott now comprises four businesses, namely Established Pharmaceuticals Division (EPD), Medical Devices, Diagnostics, and Nutritionals.

The Established Pharmaceuticals Division (EPD) is the company's branded generics business. This segment generates sales outside the US from a growing portfolio of hundreds of products. Of total EPD sales, 60% are in emerging markets and 40% in developed markets.

Medical Devices includes the diabetes care, vision care, and vascular businesses.

The Diagnostics segment manufactures and markets diagnostic systems and tests, which are sold worldwide to blood banks, hospitals, commercial laboratories, and alternate-care testing sites. The segment operates in three business lines core laboratory, molecular and point of care.

The Nutritional Products segment includes a broad line of pediatric and adult nutritional products, which are manufactured, marketed, and sold on a worldwide basis. Key brands are Similac, Ensure, Pedialyte and Glucerna.

Abbott generated sales of approximately $21.8 billion in 2013.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: ABT , EPD

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