- Increased Full-Year EPS Forecast: Abbott now expects adjusted EPS for 2024 to be between $4.61 and $4.71, up from the previous forecast of $4.55 to $4.70.
- Higher Organic Sales Growth: Organic sales growth (excluding COVID-19 testing-related sales) is now projected to be between 9.5% and 10%, up from the previous forecast of 8.5% to 10%.
- Third Quarter Forecast: Projected adjusted EPS for the third quarter of 2024 is pegged between $1.18 and $1.22, with an estimate of $1.21.
- Second Quarter Results:
- Adjusted EPS was $1.14, up from $1.08 year-over-year (y/y) and exceeding the estimate of $1.10.
- Organic sales (excluding COVID-19 testing-related sales) rose by 9.3%, though down from 11.5% y/y, and met an estimate of 9%.
- Net sales were $10.38 billion, up 4% y/y and meeting the estimate of $10.38 billion.
- Nutrition sales stood at $2.15 billion, a 3.6% increase y/y, matching the estimate of $2.15 billion.
- Diagnostics sales were $2.20 billion, a 5.3% decline y/y and slightly below the estimate of $2.21 billion.
- Covid-19 testing-related sales were $102 million, down 50% quarter-over-quarter (q/q), yet exceeding the estimate of $66.6 million.
- Established Pharmaceuticals sales were $1.29 billion, a 0.5% increase y/y but below the estimate of $1.32 billion.
- Medical Devices sales hit $4.73 billion, a 10% increase y/y, surpassing the estimate of $4.67 billion.
- Diabetes Care sales were $1.65 billion, a 16% rise y/y, meeting the estimate of $1.65 billion.
- Comments: Excluding specified items, projected adjusted diluted earnings per share for the third quarter of 2024 are expected to be between $1.18 and $1.22.
- Narrowed Full-Year Organic Sales Growth Guidance: Full-year 2024 organic sales growth guidance range, excluding COVID-19 testing-related sales, is now 9.5% to 10%, an increase at the midpoint of the range.
- Stock Ratings: Abbott has 19 buy ratings, 7 hold ratings, and 0 sell ratings.
Abbott Laboratories on Smartkarma
Analyst coverage of Abbott Laboratories on Smartkarma by Baptista Research highlights the focus on organic growth through a robust product portfolio. In their report titled “Abbott Laboratories: Focus On Organic Growth Through Robust Product Portfolio! – Key Drivers,” Baptista Research leans bullish on Abbott Laboratories. The analysis points out Abbott’s impressive performance during the Q4 2023 earnings call, revealing a 11% growth in 2023 with a notable 14% increase in organic sales.
Robert Ford, the Chairman and CEO of Abbott Laboratories, emphasized the company’s resilience and strong position amidst challenging global conditions induced by the pandemic. The report also indicates that Abbott’s operating margin has returned to pre-pandemic levels, with the potential for margin expansion, particularly on the gross margin line. Baptista Research‘s insights provide valuable perspectives for investors considering Abbott Laboratories as an investment opportunity.
A look at Abbott Laboratories Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Abbott Laboratories, a global healthcare company, presents a mixed outlook based on Smartkarma Smart Scores. With a Value score of 2, the company is deemed to have moderate value proposition. In terms of Dividend, Growth, Resilience, and Momentum, Abbott Laboratories scores a consistent 3, indicating decent performance across these factors. The company’s diversified line of health care products including pharmaceuticals, diagnostics, and vascular products, are distributed worldwide through affiliates and distributors.
Looking ahead, Abbott Laboratories seems positioned for stable growth and resilience in the long term, with a balanced approach towards dividends and momentum. While the value aspect might be an area for potential improvement, the company’s strong performance in growth, resilience, and momentum factors provides a solid foundation for continued success in the global healthcare market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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