The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Abbott Laboratories missed slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew significantly.
Gross margins grew, operating margins shrank, net margins expanded.
Abbott Laboratories reported revenue of $9.77 billion. The 16 analysts polled by S&P Capital IQ looked for revenue of $9.93 billion on the same basis. GAAP reported sales were 0.4% lower than the prior-year quarter's $9.82 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.30. The 19 earnings estimates compiled by S&P Capital IQ averaged $1.28 per share. GAAP EPS of $1.21 for Q3 were much higher than the prior-year quarter's $0.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.2%, 270 basis points better than the prior-year quarter. Operating margin was 20.4%, 90 basis points worse than the prior-year quarter. Net margin was 19.9%, 1,680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $10.59 billion. On the bottom line, the average EPS estimate is $1.51.
Next year's average estimate for revenue is $39.73 billion. The average EPS estimate is $5.06.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,547 members out of 2,639 rating the stock outperform, and 92 members rating it underperform. Among 660 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 640 give Abbott Laboratories a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abbott Laboratories is hold, with an average price target of $68.15.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.