Tomahawk, WI 10/18/2013 (BasicsMedia) – Fewer companies can match up to Abbott Laboratories (NYSE:ABT), with a market cap of $57.77 billion, in discovering, developing, manufacturing and selling a wide array of health care products. ABT only makes science-based health care products. ABT earns a third of its revenue from the U.S, as well as a third from the region comprising of Australia, Japan, Canada, and Western Europe. The remaining part of its revenue is from Brazil, Russia, China, and India. ABT posted profits in its latest financial results, but will this continue for much longer?

ABT Posts Profits Even After Splitting into Two

ABT is no longer a single entity. Early this year, it was split up to form two new companies. This split has not affected the company’s ability to make and post profits. The profits that ABT posted have helped the company to hike its revenues by close to 50%. Investors and analysts alike are excited at this turn of events. The split affected the company’s earnings, which fell by close to 50%. The most affected division of ABT was that concerned with pharmaceuticals. However, ABT’s health care products division still posted growth as seen in the latest quarterly results.

This is the third consecutive quarter in which ABT has posted results since it spun off to form AbbVie earlier in 2013. ABT has continued releasing new products in the market, now that some of its profitable ventures are under AbbVie. It has also embarked on a period of sustained acquisitions that will bear fruit in a short while, at least that is what the company hopes. ABT’s activities in Europe have been dented due to the austerity measures a number of European nations are currently carrying out. It acquired IDEV Technologies and OptiMedica Corp in 2013.

ABT Posts Profits of $966 Million

ABT’s profits for the current quarter stand at $966 million, and this is a huge drop from the $1.94 billion it reported as revenue in 2012. More importantly is the fact that ABT”s revenue in the third quarter of 2013 rose by 2% from a year earlier. ABT earned $5.37 billion as revenue in the current quarter. ABT’s global sales were severely hit when the company recalled a few of its products, which fall under the international nutrition business. Generally, ABT’s stock have been on an upwards trend in 2013, and I expect this to continue now that it has hiked its dividends.

Analysts now rank ABT higher than they did prior to the release of the company’s latest financial results. The fact that the current figures are the highest in the last four years is quite telling. I rank ABT as a must-have stock for any investor interested in the health care stocks. Its profits were realized during a period when the company’s revenue had collapsed. The company’s top executives say that they are not utterly surprised by the few misses ABT encountered in terms of sales and revenue, since this was unavoidable.

ABT has great potential and the fact that it posted profits after splitting to form two companies, and saw a drop in revenue, means that given time, it can deliver better financial results.

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