) is scheduled to report third quarter 2013 results before the
opening bell on Oct 16, 2013.
Last quarter, Abbott Labs posted a 4.55% positive surprise.
Let's see how things are shaping up for the third
Factors to Influence 3Q Results
Abbott Labs is an extremely diversified company with a
presence in the diagnostics, nutrition, generics and medical
devices markets after having separated its pharmaceutical
business into a new company called
) in Jan 2013.
However, the business environment continues to be challenging
in 2013 due to austerity measures in developed markets and weak
economic conditions elsewhere in the world. We believe the
pricing pressure in the EU and health care reforms in the U.S.
will continue to have a negative impact on sales.
Abbott Labs' Established Pharmaceuticals Division (EPD)
continues to be impacted by lower-than-expected growth in Europe
and the emerging markets. Hence, Abbott Labs now expects a
declaration in pace of growth in this segment for the remainder
Nevertheless, we expect the Nutrition and Diagnostics
divisions to somewhat offset the decline in other segments.
Our proven model does not conclusively show that Abbott Labs
is likely to beat the Zacks Consensus Estimate in the third
quarter. This is because a stock needs to have both a positive
and a Zacks Rank #1 (Strong Buy) or at least 2 or 3 for this to
happen. Unfortunately, this is not the case here as elaborated
Negative Zacks ESP
: The Earnings ESP for Abbott Labs is -1.92%. This is
because the Most Accurate estimate stands at $0.51 while the
Zacks Consensus Estimate is higher at $0.52.
: Abbott Labs carries a Zacks Rank #3 (Hold), which increases the
predictive power of ESP. That said we also need to have a
positive ESP to be confident of an earnings beat.
We caution against stocks with Zacks Ranks #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revision
Stocks to Consider
Here are some other stocks you may want to consider as our
model shows that these have the right combination of elements to
post an earnings beat this season:
Eli Lilly and Company
) has Earnings ESP of +1.92% and holds a Zacks Rank #3 (Hold).
Eli Lilly will be reporting third quarter earnings on Oct
) has Earnings ESP of +0.91% and holds a Zacks Rank #2 (Buy).
Biogen will be reporting third quarter earnings on Oct 28.
ABBVIE INC (ABBV): Free Stock Analysis Report
ABBOTT LABS (ABT): Free Stock Analysis Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis
LILLY ELI & CO (LLY): Free Stock Analysis
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