Abbott Laboratories (ABT) raises EPS guidance; stock falls 1.2% - Kalkine Media

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 Abbott Laboratories (ABT) raises EPS guidance; stock falls 1.2%
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Highlights:

  • Abbott Laboratories (NYSE: ABT) manufactures medical devices, nutritional products, diagnostic equipment, testing kits, and branded generic drugs.
  • It reported a net sale of US$11.3 billion for Q2, 2022, reflecting an increase of 10.1% YoY. 
  • On a one-year basis, the stock fell 7.4%. 

Abbott Laboratories (NYSE: ABT) on Wednesday announced its results for the quarter ended June 30, 2022. The company raised full-year EPS guidance, yet the stock fell 1.23% and traded at US$108.58 at 11:18 am ET.

The healthcare company reported a net sale of US$11.3 billion compared to US$10.2 billion in Q2 in the previous year, reflecting an increase of 10.1% YoY. 

Its COVID-19 testing-related sales globally were US$2.3 billion in Q2. 

Its nutritional segment sale was US$1.95 billion, a 7.4% decrease YoY, and Diagnostics sale was US$4.3 billion, a 33.1% higher than the previous year’s Q2 and the higher increase in all the segments. The established pharmaceuticals segment showed a 3.7% YoY jump with US$1.22 billion in sales; the last segment Medical Devices sale, also grew 2.5% YoY to US$3.58 billion. 

Its net income increased 69.7% YoY to US$2.02 billion compared to US$1.19 billion in the June quarter of 2021. The earnings per share diluted came in at US$1.14 for Q2, 2022, compared to US$0.66 for Q2, 2021, showing a jump of 72.7% YoY. 

The company projects COVID-19 testing-related sales of US$6.1 billion for the year, including sales of US$5.6 billion through June 2022 and US$500 million to be achieved in the coming months.

Robert B. Ford, chairman and CEO of Abbott, said in the press release that the strong quarter and product pipeline made the company raise its full-year EPS guidance.  

It raised its projected diluted earnings per share under GAAP to a minimum of US$3.50 for full-year 2022.

The company declared a quarterly dividend of US$0.47 per share on June 10, payable on August 15, to the shareholders of record on July 15, 2022. The company has increased its dividend payout for 50 consecutive years and is a part of the S&P 500 Dividend Aristocrats Index.

The global healthcare company employs 113,000 people and is present in more than 160 countries. This Abbott part, Illinois-based company manufactures medical devices, nutritional products, diagnostic equipment, testing kits, and branded generic drugs. 

Its current market capitalization is US$190 billion with a P/E ratio of 25.07 and a forward P/E for one year of 23.14. The current dividend yield is 1.76%, and an annualized dividend is US$1.88. 

The stock traded in the range of US$142.60 to US$101.24 in the last 52 weeks.

Bottom line:

On a one-year basis, the stock fell 7.4%, and on a year-to-date basis, it plunged 20.94%. One should always analyze the stock fundamentals before investing in them.

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