Abbott Laboratories (ABT - Free Report) is an Illinois-based company focused on bringing a diverse line of healthcare products to the market.

Abbott Labs reports its diversified business in four segments – namely Established Pharmaceuticals Division (EPD), Medical Devices, Diagnostics and Nutrition. The company has reshaped its portfolio through strategic acquisitions/divestitures in recent times. It has also been taking strategic steps to expand its footprint in the growing geographies and investing in R&D, which has resulted in numerous new product launches across its businesses.

In Feb 2015, Abbott completed the sale of its branded generics pharmaceuticals business in developed markets. Realignment of the EPD division through acquisitions in Latin America and Russia, along with business divestitures in developed markets, has positioned the company well for the coming quarters. However, unfavorable movement in foreign currency rates is affecting the top line adversely.

Abbott Labs has an impressive track record as the company beat estimates in the last four trailing quarters with an average positive earnings surprise of 3.07%.

Currently, Abbott Labs has a Zacks Rank #3 (Hold), but that could definitely change following the company’s fourth quarter 2016 earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: The Zacks Consensus Estimate remained steady at 64 per share over the last 60 days. Abbott Labs’ fourth quarter 2016 earnings per share from continuing operations of 65 cents beat this estimate bya penny and up 4.83% year over year. 

Full year adjusted earnings came in at $2.20 per share which is in line with the Zacks Consensus Estimate.

Abbott Laboratories Price and EPS Surprise

Abbott Laboratories Price and EPS Surprise | Abbott Laboratories Quote

Revenues: Abbott Labs posted fourth quarter revenues of $5.33 billion which is closely in line with the Zacks Consensus Estimate for revenues of $5.36 billion.

Full year revenues came in at $20.85 billion which is nearly in line with the Zacks Consensus Estimate of $20.90 billion.

Key Stats:   Worldwide Nutrition sales decreased 3.7% on a reported basis in the fourth quarter to $1.73 billion while worldwide Diagnostics sales increased 2.9% on a reported basis to $1.25 billion while total Established Pharmaceuticals sales increased 10.6% on a reported basis to $979 million. Revenues of Worldwide Medical Devices increased 4.4% on a reported basis to $5.23 billion. 

Major Factors: Per management, in the fourth quarter, Abbott obtained CE Mark for four new major diagnostics systems which have reflected in the quarterly results. Management has also issued full-year 2017 guidance range for reported EPS from continuing operations in the range of $0.92-$1.02, including intangible amortization and integration expenses related to the acquisition of St. Jude Medical. It has also issued full-year 2017 adjusted EPS from continuing operations in the band of $2.40-$2.50. 

Stock Price: Following the earnings release, share prices dropped 0.77% during the pre-market trading session.