Tomahawk, WI 01/31/2014 (BasicsMedia) – Abbott Laboratories (NYSE:ABT) earnings and revenues this quarter has not been upto expectations and its growth rate for the last two quarters have not been good although Abbott has a valid reason for its shortcoming being the fact that it had to recall its nutritional formula but it does not justify Abbott’s fall in earnings which has led to a fall in Abbott’s valuation as well.

Abbott’s selling points and issues

Abbott Laboratories (NYSE:ABT) is engaged in the discovery, development, manufacture, and sale of a portfolio of science-based health care products and is engaged in four business segments being diagnostics, medical devices, nutritional and generic pharmaceuticals and is a pioneer in its field. Although Abbott’s last two quarter results have been disappointing yet it has increased its dividend payout for the 41st consecutive year thereby making it an interesting stock to buy. Abbott has announced a dividend increase of 57% compared to the dividends paid in 2013 i.e. it will be paying 22 cents per share compared to 14 cents per share in 2013 to its investors. The best thing about Abbott is its management which not only works at increasing shareholder’s value but has also managed to sustain Abbott’s brand equity over the years.

The problem area for Abbott Laboratories (NYSE:ABT) has been that over the summer it was forced to recall its nutritional formula due to some issues with it and furthermore, Abbott is closing one of its manufacturing plants in the Puerto Rico town of Barceloneta next year thereby delivering yet another blow to the pharmaceutical giant.


Although things to seem to be looking down for Abbott in its certain business segment however Abbott’s Vision Care segment going to be great guns with the launch of Abbott’s iDesign Dx system in the USA which uses the same technology as is used by NASA to measure optics in space telescopes which goes on to show the high level technology which Abbott possesses which gives Abbott Laboratories (NYSE:ABT) an edge over its rivals. Abbott has made two important acquisitions to boost its offerings in the Vascular and Medical Optics segments, one being IDEV Technologies,a stent manufacturing company and another being OptiMedica Corporation which goes on to show that with such diversifies businesses as Abbott has Abbott will easily tide over its difficulties soon and make a turnaround in the market earlier then its analysts or critics expect it to.

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