Abbott Laboratories, a leading healthcare products manufacturer, has impressed investors with its strong earnings and revenue performance in the third quarter. The company reported earnings of $1.14 per share on revenue of $10.1 billion, surpassing analysts' expectations. According to FactSet, analysts had predicted earnings of $1.10 per share and revenue of $9.82 billion.
Segment Performance
While overall sales saw a slight decline compared to the previous year, Abbott attributed this to a significant drop of 33% in diagnostics-segment revenue from 2022. Furthermore, global sales of Covid-19 testing kits amounted to $305 million in the quarter, a notable decrease from $1.67 billion last year.
However, Abbott witnessed growth in other key segments. The nutrition, established pharmaceuticals, and medical-devices segments all recorded increased sales compared to the previous year.
Upgraded Earnings Guidance
Abbott has also adjusted its earnings-per-share guidance for 2023, now expecting a range of $4.42 to $4.46, with a midpoint of $4.44. This is a positive change from their previous guidance of $4.30 to $4.50 per share, with a midpoint of $4.40.
Positive Outlook
CEO Robert Ford expressed confidence in the company's performance, stating that the investments made during the pandemic have driven broad-based growth across their core business areas. This bodes well for Abbott's future prospects.
Stock Performance
Following the earnings announcement, Abbott's stock witnessed a 2.5% increase in premarket trading on Wednesday, reaching $94.40 per share. However, the stock has experienced a 16% decline year-to-date.
