Abbott Labs Is Just Getting By
Sales are up, but its turnaround is still far off.
Abbott Laboratories (ABT) is meeting expectations, but the company isn't exactly an overachiever. Although it's one of the cheapest big pharmaceutical stocks and could eventually qualify as a turnaround play, improvements are too far off to make the stock compelling right now.
The firm announced Wednesday that it matched consensus earnings estimates of $0.44 a share for the second quarter. Sales of pharmaceutical products, which make up a large portion of Abbott's operating income, rose 3.5% from the year-earlier period.
The company's pharmaceutical sales growth has been sluggish in recent years. And Abbott's pipeline was recently dealt a blow: The firm pulled its new-drug application for the anti-impotence drug Uprima in June, so that it could further study the drug's safety and efficacy and submit those new data for the Food and Drug Administration's review.
Emily Hall does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.