Earnings Preview: Abbott Labs

Abbott Labs (ABT) is expected to report Q3 earnings before market open Wednesday Oct. 15, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are looking for a profit of 77c on revenue of $7.35B. The consensus range is 76c to 78c for EPS, and revenue of $7.19B to $7.50B, according to First Call. In its Q2 earnings release Abbott reported EPS 84c compared to consensus of 79c and revenue of $7.31B compared to consensus of $7.23B. Abbott gave Q3 guidance of 76c to 78c.

Analyst Views

Possible revenue drivers this quarter may be sales strength in in Humira and strong sales of the Xience stent in U.S and abroad. Risks to earnings this period include lower than anticipated Humira sales and generic competition.

On September 5, Leerink Swann reiterated its Outperform rating on the shares. Leerink sees the sale of Abbott's spine division as positive as it indicates the company is reshaping its portfolio toward higher growth businesses. On September 24, Leerink noted that sales of Xience are exceeding expectations.