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(La Jolla, CA) This is a busy week for healthcare, as companies in various subsectors from Pharma to Medical Devices are set to report 4Q earnings results. Here we take a look at three of the top players scheduled to announce profits during the second half of the week – Abbott Laboratories, Baxter, and Becton Dickinson.
Abbott (NYSE: ABT) will be the first of the group to announce results. The company is expected to report earnings per share of $1.17 and revenues $8.6 billion on Wednesday. Wall Street analysts believe that profits will be driven by strong pharma sales. Despite weak domestic results due to the economy and competition from generic drug makers, Abbott is getting a strong boost from international sales stemming from a decreasing dollar. Investors in 2010 will be eager to find out the impact of Abbott’s recent acquisitions across a wide range of sectors, including Solvay, Starlims Technologies, and Advanced Medical Optics. The company expects these acquisitions as well as plans to build its Diagnostic and Nutrition segments will be key growth factors. To read about additional investment considerations for Abbott, take a look at our free ABT trading report. Shares of Abbott closed at $54.70 on Monday.
Baxter (NYSE: BAX), scheduled to report earnings Thursday, is expected to earn $1.03 per share and $3.4 billion in revenues. Biosciences should lead the other segments in sales (double digit growth), however like Abbott all divisions are benefiting from strong international results due to the weakening dollar. Revenues from the H1N1 vaccine should provide approximately $30 million in sales according to Wall Street analysts. However, as swine flu fears and cases decrease, it is uncertain how long that demand will last. Shares of Baxter closed $58.96 Monday, which is at the higher end of its 52 week range. To read more about Baxter’s strategic goals for 2010 and whether expected product launches will boost its stock price, download our free BAX trading report.
Becton Dickinson (NYSE: BDX) is also scheduled to announce earnings Thursday. The company is expected to report Q1 2010 profits of $1.20 per share and $1.8 billion in revenues. With a large portfolio of medical devices, the company has suffered a drop in sales due to the struggling economy. Major customers cut spending dramatically for new equipment purchases. Fortunately for BD, that loss is offset by increased demand for H1N1 vaccine this quarter. As for Baxter, that demand could soon taper off, but BD is already planning new product launches for Diabetes and is scheduled to open a new bio-processing facility in Miami. These initiatives, along with potential stimulus funding, could stabilize near term drops in sales and prepare the company for long term growth. Shares of BD closed $75.78 Monday, compared to its 52 week high of $79.97. To learn more about BD and if it is the right time to invest, read our free BDX trading report.
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