Abbott Labs Lifts Guidance

I took Abbott Laboratories ($ABT) off this year’s Buy List. Even though I still like the company a lot, I felt that the stock had become a bit pricey and I wanted to make room for some new stocks. Also, Abbott plans to split itself into two companies — one in diversified medical products and the other in research-based pharmaceuticals.

Today, Abbott reported adjusted earnings of $1.03 per share which was three cents better than estimates. The company also raised its full-year forecast range to $5.00 to $5.10 per share. That’s an increase of five cents at each end.

I’m not sure how the new range pertains to the spin-offs. The stock is down today but there’s a lot I like about Abbott. I’m not upset I took it off the Buy List; ABT is up 6.8% for the year which trails the S&P 500. However, once the new stocks are trading, I’d be very interested in adding the medical products stock to next year’s Buy List.

Posted by on April 18th, 2012 at 12:36 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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