Abbott Labs Earns $1.30 Per Share

This morning, Abbott Labs (ABT) reported Q4 earnings of $1.30 per share which beat Wall Street’s forecast by a penny. Sales for the quarter rose by 13% to just shy of $10 billion.

One of the reasons I like Abbott is that the stock has been weighed down by some bad news recently. In the past few months, the company had to pull a diet drug off the market. That was actually good news compared to when Abbott had to pull its baby formula off the market due to contamination from…wait for it…insect parts.

Despite the bad news, this is a very solid company. Drug sales, which make up about 60% of ABT’s business, surged 23% in Q4. For all of 2011, ABT said it expects earnings-per-share between $4.54 and $4.64 per share. That gives Abbott a forward P/E of about 10.4 which is a very good value.

Posted by on January 26th, 2011 at 9:35 am


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