Earnings Preview: Abbott Laboratories

Abbott Laboratories (ABT) is expected to report Q2 earnings before market open on Wednesday, July 16, with a conference call scheduled July 16 for 9:00 am ET.

Guidance

Analysts are looking for a profit of 79c on revenue of $7.23B. The consensus range is 76c to 79c for EPS, and revenue of $7.15B to $7.38B, according to First Call. In its Q1 earnings release, Abbott reported EPS 63c compared to consensus of 62c and revenue of $6.8B compared to consensus of $6.53B. Abbott gave Q2 guidance of 78c to 80c.

Possible revenue drivers this quarter include strong growth in Humira and higher vascular sales due to the launch of the Xience stent. Risks to earnings this period include pipeline problems, lower than anticipated Humira sales and generic competition.

Analyst Views

In a recent research note, Leerink Swann initiated the stock with an Outperform rating. On July 15, Stanford noted that it expects this quarter's results slightly below consensus. Stanford still believes the recent U.S. approval and launch of Abbott's Xience will allow the company to grow in the near-term and long-term, and the firm maintained its Buy rating.