Abbott (ABT - Free Report) 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. It has also been taking strategic steps to expand its footprint in the growing geographies and investing in R&D, which has resulted in numerous new product launches across its businesses.

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. However, unfavorable movement in foreign currency rates is affecting the top line adversely.

Abbott Laboratories Price and EPS Surprise

 | 

Abbott has an impressive track record as the company beat estimates in the last four trailing quarters with an average positive earnings surprise of 4.67%.

Currently, Abbott has a Zacks Rank #3 (Hold), but that could definitely change following the company’s second quarter 2017 earnings report which was just released.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: The Zacks Consensus Estimate remained steady at 73 cents per share over the last 60 days. Abbott’ fourth quarter 2017 earnings per share from continuing operations of 74 cents outpaced this estimate by a penny. 

Revenues: Abbott posted fourth quarter revenues of $7.59 billion beating the Zacks Consensus Estimate for revenues of $7.36 billion.

Key Stats:  Worldwide Nutrition sales increased 2% on a reported basis in the fourth quarter to $1.78 billion while worldwide Diagnostics sales increased 6.7% on a reported basis to $1.9 billion while total Established Pharmaceuticals sales increased 14% on a reported basis to $1.14 billion. Revenues of Worldwide Medical Devices increased 9.6% on a reported basis to $2.73 billion. 

Major Factors: Abbott issued earnings outlook for 2018, reflecting strong double-digit growth. The company banks on new product approvals and launches. Notably, Abbott received FDA clearance for its Confirm Rx Insertable Cardiac Monitor in October. Also, the company won FDA approval for magnetic resonance (MR)-conditional labeling for its Quadra Assura and Quadra Assura MP cardiac resynchronization therapy defibrillator (CRT-D) devices and its Fortify Assura implantable cardioverter defibrillator (ICD).

Stock Price: Following the earnings release, share prices rose 1.77% during the pre-market trading session.