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Abbott (ABT) Organic Growth Strong, Pediatric Nutrition Down
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Abbott Laboratories (ABT - Free Report) has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. The stock currently carries a Zacks Rank #3 (Hold).
Over the past six months, Abbott has been outperforming the industry. The stock has gained 11.5% compared with the industry's 6.4% rise.
Abbott posted more that 100% adjusted earnings per share growth and 33% organic sales growth in first-quarter 2021. Global COVID-19 testing-related sales were $2.2 billion with rapid tests comprising roughly 85% of it. Base business organic sales growth (excluding COVID-19 testing-related sales) was nearly 6%.
In the first quarter, within Adult Nutrition, the company reported more than 18% growth with Ensure (adult complete and balanced nutrition brand) and Glucerna (diabetes nutrition brand) reporting robust sales. Within pediatric nutrition, in the United States and several international markets, the company captured share with its portfolio of infant formula and toddler brands.
Within Diagnostics, sales increased 115%, led by growing demand for Abbott’s portfolio of COVID-19 tests as well as improvement in the base business. During the quarter, BinaxNOW received U.S. emergency use authorization for over-the-counter nonprescription self-use. In April, the company began shipping test kits to major retailers.
Within Medical Device, sales grew nearly 9% led by strong growth in Structural Heart, Rhythm Management, Electrophysiology, and Diabetes Care. Despite disruption in procedure volumes across cardiovascular and neuromodulation businesses earlier this year due to elevated case rates, over all procedural volume improved in the first quarter. The Diabetes Care business particularly has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre.
Within Established Pharmaceuticals Division (EPD), sales grew over 6% year over year led by double-digit growth in India, China and Brazil. While Abbott continued to see elevated COVID-19 case levels across several emerging markets, the business is executing strongly banking on greater patient access to its branded generic medicines.
On the flip side, within Medical Device, the company registered challenging conditions in terms of procedure volume in the early months of 2021 across its cardiovascular and neuromodulation businesses. The volume was impacted by elevated case rates in certain countries including the United States.
Within Paeditric Nutrition, sales declined 2.5% year over year on difficult year-over-year comparison. During the first quarter of 2020, this business had witnessed significant pantry stocking ahead of the shelter-in-place restrictions in several countries.
We are also worried about the ongoing tensions between the United States and China regarding the imposition of tariffs on imports. This has raised concerns for major MedTech players like Abbott as any adverse move may affect their sales performance in China in the near term.
National Vision has a projected long-term earnings growth rate of 23%.
Owens & Minor has a projected long-term earnings growth rate of 15.1%.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Shutterstock
Abbott (ABT) Organic Growth Strong, Pediatric Nutrition Down
Abbott Laboratories (ABT - Free Report) has been delivering consistent organic growth in the Established Pharmaceuticals Division (EPD) and Diabetes segments. The stock currently carries a Zacks Rank #3 (Hold).
Over the past six months, Abbott has been outperforming the industry. The stock has gained 11.5% compared with the industry's 6.4% rise.
Abbott posted more that 100% adjusted earnings per share growth and 33% organic sales growth in first-quarter 2021. Global COVID-19 testing-related sales were $2.2 billion with rapid tests comprising roughly 85% of it. Base business organic sales growth (excluding COVID-19 testing-related sales) was nearly 6%.
In the first quarter, within Adult Nutrition, the company reported more than 18% growth with Ensure (adult complete and balanced nutrition brand) and Glucerna (diabetes nutrition brand) reporting robust sales. Within pediatric nutrition, in the United States and several international markets, the company captured share with its portfolio of infant formula and toddler brands.
Within Diagnostics, sales increased 115%, led by growing demand for Abbott’s portfolio of COVID-19 tests as well as improvement in the base business. During the quarter, BinaxNOW received U.S. emergency use authorization for over-the-counter nonprescription self-use. In April, the company began shipping test kits to major retailers.
Within Medical Device, sales grew nearly 9% led by strong growth in Structural Heart, Rhythm Management, Electrophysiology, and Diabetes Care. Despite disruption in procedure volumes across cardiovascular and neuromodulation businesses earlier this year due to elevated case rates, over all procedural volume improved in the first quarter. The Diabetes Care business particularly has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre.
Within Established Pharmaceuticals Division (EPD), sales grew over 6% year over year led by double-digit growth in India, China and Brazil. While Abbott continued to see elevated COVID-19 case levels across several emerging markets, the business is executing strongly banking on greater patient access to its branded generic medicines.
On the flip side, within Medical Device, the company registered challenging conditions in terms of procedure volume in the early months of 2021 across its cardiovascular and neuromodulation businesses. The volume was impacted by elevated case rates in certain countries including the United States.
Within Paeditric Nutrition, sales declined 2.5% year over year on difficult year-over-year comparison. During the first quarter of 2020, this business had witnessed significant pantry stocking ahead of the shelter-in-place restrictions in several countries.
We are also worried about the ongoing tensions between the United States and China regarding the imposition of tariffs on imports. This has raised concerns for major MedTech players like Abbott as any adverse move may affect their sales performance in China in the near term.
Key Picks
A few better-ranked stocks from the broader medical space are National Vision Holdings, Inc. (EYE - Free Report) , Owens & Minor, Inc. (OMI - Free Report) and Envista Holdings Corporation (NVST - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.
National Vision has a projected long-term earnings growth rate of 23%.
Owens & Minor has a projected long-term earnings growth rate of 15.1%.
Envista Holdings has an estimated long-term earnings growth rate of 26%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>