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Highlights
- Abbott Laboratories’ (NYSE:ABT) third-quarter sales rose 23.4% to US$10.9 billion YoY.
- Abbott raised its full-year adjusted EPS guidance to between US$5.00 and US$5.10.
- Anthem, Inc’s (NYSE:ANTM) operating revenue jumped 16% to US$35.5 billion YoY, while medical enrollment grew 5.7% YoY.
Healthcare companies Abbott Laboratories (NYSE:ABT) and Anthem Inc. (NYSE:ANTM) posted solid third-quarter revenue growth on Wednesday, pushing their stock prices higher.
The ABT stock was up 3.99% to US$124.10, and the ANTM stock was up 2.86% to US$405.01 at around 9:30 am ET from their previous closing prices.
Here’s a look at their quarterly performances.
Abbott Laboratories
Abbott reported sales of US$10.9 billion, a 23.4% increase over the previous year. Abbott’s organic sales were up 22.4%. In addition, its testing-related global sales were US$1.9 billion.
Abbott’s GAAP earnings per share diluted was US$1.17, up 69.6%, from the previous year, while its adjusted diluted EPS was US$1.40, an increase of 43% YoY.
The company has raised its revenue guidance after its remarkable performance in the latest quarter, beating estimates.
Abbott expects the GAAP EPS diluted from continuing operations to be in the range of between US$3.55 to US$3.65 for FY 2021 and adjusted EPS diluted between US$5.00 and US$5.10.
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Segment-wise:
Its nutrition segment generated US$2.1 billion, a 9.6% increase YoY, diagnostics segment contributed US$3.9 billion, up 48.2% YoY, established pharmaceuticals earned US$1.27 billion, up 15.1% YoY, and medical devices generated US$3.63, a 14.6% increase from the last year.
The company declared a dividend of US$0.45 per share to be paid on Nov. 15, 2021, for shareholders of record on Oct. 15, 2021.
The Abbott Park, Illinois-based healthcare company manufactures and sells medical devices, nutritional products, generic drugs, testing kits, etc.
The company has a market capitalization of US$211.6 billion, a P/E ratio of 33.62, a dividend yield of 1.54%, and an annualized dividend of US$1.80.
The Abbott stock closed at US$119.34 with a share volume of 5,879,958 on Oct 19.
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Source – pixabay
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Anthem, Inc.
The Indianapolis, Indiana-based health insurance provider’s operating revenue was US$35.5 billion, a 16% increase from the previous year’s corresponding quarter.
The net income was US$1.5 billion compared to US$0.222 billion in Q3, 2020, up 577% YoY. The GAAP net income per share was US$6.13, and the adjusted net income per share was US$6.79.
For the full year 2021, Anthem raised the adjusted net income guidance to US$25.85 per share from the earlier US$25.50 per share.
In addition, the expected operating cash flow is to be more than US$6.0 billion, and the investment income is to be around US$1.2 billion for the full year of 2021.
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Segment-wise:
The commercial & specialty business operating gain was US$620 million, compared to the operating loss of US$234 million in the September quarter of 2020.
The government business segment generated US$967 million, IngenioRx made US$445 million, and income from other operations was US$27 million, bringing the total to US$2.06 billion.
The company has declared a dividend of US$1.13 per share for the fourth quarter of 2021.
As of September 30, 2021, its medical enrollment was 45.1 million, a 5.7% rise compared to the previous year. The company serves more than 117 million people.
Its market capitalization is US$96 billion, the P/E ratio is 23.13, the dividend yield and annualized dividend are 1.16% and US$4.52, respectively.
The stock closed at US$393.75 with a share volume of 1,319,681 on Oct 19, 2021.
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Bottomline
The NYSE Healthcare Index (NYP.ID) generated 12.62% return year-to-date and 20.89% in one year. At the same time, Abbott gave a 13.69% return YTD and 14.77% in one year, while Anthem stock gave a 30% return YTD and 43% in one year. The healthcare sector saw significant gains this year, boosted by robust investments in vaccine development. However, investors should evaluate the companies carefully before investing in stocks.
