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Abbott Laboratories Beats Estimates But Has a Big Earnings Drop

By Seth Jayson – Updated Apr 10, 2017 at 1:52PM

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Just the facts, Fool.

Abbott Laboratories (NYSE: ABT) reported earnings on April 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Abbott Laboratories met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
Abbott Laboratories booked revenue of $5.38 billion. The 16 analysts polled by S&P Capital IQ wanted to see sales of $5.41 billion on the same basis. GAAP reported sales were 43% lower than the prior-year quarter's $9.46 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.42. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. Non-GAAP EPS of $0.42 for Q1 were 59% lower than the prior-year quarter's $1.03 per share. GAAP EPS of $0.34 for Q1 were 56% lower than the prior-year quarter's $0.77 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.8%, 580 basis points worse than the prior-year quarter. Operating margin was 11.4%, 680 basis points worse than the prior-year quarter. Net margin was 10.1%, 300 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $5.60 billion. On the bottom line, the average EPS estimate is $0.44.

Next year's average estimate for revenue is $22.63 billion. The average EPS estimate is $1.99.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,530 members out of 2,623 rating the stock outperform, and 93 members rating it underperform. Among 695 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 681 give Abbott Laboratories a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abbott Laboratories is outperform, with an average price target of $35.37.

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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 position in any of the stocks mentioned. 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.

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Abbott Laboratories Stock Quote
Abbott Laboratories
ABT
$107.58 (-0.01%) $0.01

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