Boston, MA 01/30/2014 (wallstreetpr) – Abbott Laboratories (NYSE:ABT) has slowly but picked up as a worthy buy in 2014 especially after splitting half its operation in 2013. The company had split its US drug portfolio into AbbVie leaving it with medical device and equipment in the effort of trying to boost shareholder value. It seems the company has attained this objective as a result enjoying a stable growth business through the sale of its infant formula, lab tools and stents. This has essentially allowed low risk investors to own part of the company as it continues to pick up in the market. The split has also allowed more risk tolerant investors to invest in emerging drugs such as those for hepatitis C and cancer.
Abbott Laboratories (NYSE:ABT) averaged high operating margins of $5.3 billion in the third quarter producing earnings per share of $0.55 against $0.42 the previous year. The increase in operating margins was enhanced by its nutrition segment which focuses mainly on similar infant formula representing less than a third of the company’s sales. The last quarter saw sales grow by a high of 1.9% although they could have been even better if it were not for the overhang of a recall in China.
Abbott Laboratories (NYSE:ABT) formula is expected to record a substantial increase in sales as wealthier emerging markets continue to uplift the growing market for baby food and pediatric nutrition. This sector is expected to experience a massive growth of $64 billion as of 2017 compared to $41 billion in 2012. The baby business is expected to provide Abbott with a steady income in the coming years although diagnostics is the fastest growing business under its belt. The molecular diagnostic product sales were up by 15% as a result of growth for the demand of infectious disease products. The strength in diagnostics is expected to continue as the market is expected to nearly double as of 2017.
