) is set to report second quarter 2014 results on Jul 16 before
market opens. Last quarter, the company had posted an earnings
surprise of +17.14%. Let's see how things are shaping up for this
Factors at Play
While the diagnostics division is expected to continue to grow in
mid-to-high single digit operational sales for the established
pharmaceuticals division is expected to grow in the low single
digits. The global diabetes segment is also expected to reflect a
low double-digit decline in sales.
Moreover, Abbott Labs' top-line will remain under pressure due to
the disruption of nutrition product sales following a supplier
recall in the international market in August last year. The company
expects to return to pre-recall levels in the third quarter of
2014. Sales might be adversely affected by about 1.5% due to
On its first quarter call, the company said that it expects second
quarter earnings in the range of 50 cents − 52 cents per share,
reflecting double-digit growth at the midpoint of the range.
Our proven model does not conclusively show that Abbott Labs is
likely to beat earnings this quarter. That is because a stock needs
to have both a positive
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. That is not the case here as you will see below.
The Earnings ESP for Abbott Labs is 0.00% since the Most Accurate
Estimate stands at $0.51, in line with the Zacks Consensus
Zacks Rank #3 (Hold):
Abbott Labs' Zacks Rank #3 (Hold) has little effect on the
predictive power of ESP because the Zacks Rank #3 when combined
with a 0.00% ESP makes surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements, i.e.,
a positive Zacks Earnings ESP and a Zacks Rank #1, #2 or #3.
Biogen Idec Inc.
) has an Earnings ESP of +2.19% and holds a Zacks Rank #1 (Strong
Buy). Biogen will report second quarter earnings on Jul 23.
) has an Earnings ESP of +5.95% and holds a Zacks Rank #1.
Mallinckrodt will report third quarter earnings on Aug 7.
Impax Laboratories Inc.
) has an Earnings ESP of +26.83% and holds a Zacks Rank #3. Impax
will report second quarter earnings on Aug 6.
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ABBOTT LABS (ABT): Free Stock Analysis Report
IMPAX LABORATRS (IPXL): Free Stock Analysis
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MALLINCKRODT PL (MNK): Free Stock Analysis
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