Abbott’s Q3 Earnings Rise on Lower Costs; Adjusted Net Beats, but Revenue Misses (ABT)
Diversified health care products maker Abbott Laboratories ( ABT ) on Wednesday posted mixed third quarter earnings, as profit beat estimates but its revenue fell short of analysts' view.
The Abbott Park, IL-based company reported third quarter net income of $1.94 billion, or $1.21 per share, compared with $303 million, or 19 cents per share, in the year-ago period. Excluding special items, adjusted profit was $1.30 per share.
Revenue fell 0.4% from last year to $9.77 billion.
On average, Wall Street analysts expected a smaller profit of $1.28 per share, albeit on higher revenue of $9.94 billion.
Looking ahead, ABT narrowed its full-year earnings outlook to a range of $5.06 to $5.08 per share. It had previously forecast $5.00 to $5.10 for the year. The company also noted it remains on track to split into two separate publicly-traded companies on January 1, 2013. One company will comprise ABT's pharmaceutical operations, while the other will be made up of its medical devices unit.
Abbott Laboratories shares fell 63 cents, or -0.9%, in premarket trading Wednesday.
The Bottom Line
We have been recommending shares of Abbott Labs ( ABT ) since Feb.18, 2011, when the stock was trading at $72.13. The company has a 2.83% dividend yield, based on last night's closing stock price of $72.13.
Abbott Laboratories ( ABT ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.