Abbott Laboratories (ABT) diverse businesses enable the company to deliver a steady stream of revenue and earnings.
Growth and Income
The company is expected to grow its earnings per share 11.3% in 2010, 11.4% in 2011, and 10.6% over the long term. Its trailing 12-month return on equity is 28.2%. The stock also offers investors a dividend yield of 3.6%.
This Zacks #2 Rank stock trades at 12x 2010 consensus EPS estimates and 11x 2011 consensus EPS estimates.
Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. It operates in four segments: Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products.
On July 21, Abbott announced second-quarter results. Revenues grew 17.8% to $8.8 billion. The company had earnings of $1.01 per share, a penny above the Zacks Consensus Estimate. Earnings were up 13.5% from the year-ago period.
Management reiterated its previous guidance for 2010. Abbott Labs expects EPS of $4.13-$4.18.
Chairman and CEO Miles White said, “Abbott strengthened our emerging markets presence with the announced acquisition of Piramal Healthcare Solutions, giving Abbott the number-one position in the fast-growing Indian pharmaceutical market. This follows several other strategic actions that provide Abbott critical mass to capture the significant growth expected in emerging markets.”
The Zacks Consensus Estimates for 2010 and 2011 are $4.16 and $4.63, respectively. Those estimates have held steady for the last few months.
ABT shares are down about 13% year-to-date, but the stock looks like it found support around the $46 level. Still, the stock is about $2.50 below its 200-day moving average, and that could act as resistance for the stock.