We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Abbott (ABT) EPD Sales Aid Growth Amid Currency Headwind
Read MoreHide Full Article
Abbott’s (ABT - Free Report) new product launches and acquisitions are expected to boost its sales. However, the macroeconomic environment continues to be challenging for the business. The stock carries a Zacks Rank #3 (Hold).
Over the past year, Abbott has been outperforming the industry it belongs to. The stock has gained 0.9% against the industry’s 22.7% fall.
Abbott exited the first quarter of 2023 with better-than-expected earnings and revenues. Organic sales growth, excluding COVID testing, increased 10%, led by double-digit growth in Medical Devices, Established Pharmaceuticals Division (EPD) and Nutrition. Within EPD, sales increased 11% in the quarter, led by strong performance in Brazil, China and Southeast Asia and across several therapeutic areas, including cardiometabolic, gastroenterology, central nervous system (CNS) and pain management. EPD continued to witness double-digit sales growth momentum in the last two years.
Within Nutrition, sales increased more than 10%. In the United States, pediatric nutrition growth of more than 35% was driven by favorable year-over-year comparisons (lower sales in the first quarter of 2022 were due to a voluntary recall of certain infant formula products). Abbott continued to make progress, increasing manufacturing production and recovering market share in this business. Internationally, total nutrition sales grew mid-single digits overall. Sales in global adult nutrition also grew in mid-single digits, driven by the strong performance of the company’s market-leading Ensure brand.
Within Diagnostics, excluding COVID testing, organic sales growth was led by mid-to-high single-digit growth in Core Lab, Rapid and Point of Care Diagnostics. Despite dull sales in China, Core Lab Diagnostics' sales showed year-over-year improvement, led by strong performance in the United States and Europe.
Within Medical Devices, sales grew 12.5% globally on an organic basis, including mid-teens growth in the United States and double-digit growth internationally. In Diabetes Care, sales of FreeStyle Libre grew more than 25% on an organic basis in the quarter, including approximately 50% growth in the United States and mid-teens growth internationally.
Abbott currently forecasts total organic sales growth, excluding the impact of COVID testing-related sales, to be in high-single digits for 2023.
On the flip side, Abbott’s first-quarter worldwide sales were down 18.1% year over year on a reported basis. Total sales were negatively impacted by COVID-19 testing-related sales decline. Diagnostics sales, as forecast, were negatively impacted by a significant decrease in COVID testing sales compared to the first quarter of 2023.
Worldwide COVID-19 testing sales were $730 million in the first quarter compared with $3.3 billion in the year-ago period. Further, in Core Lab Diagnostics, growth was partially offset by soft market conditions in China.
The challenging macroeconomic environment and stubborn inflationary situation severely impacted the company’s profitability in the first quarter. The ongoing inflation situation across the globe is adversely impacting the input cost for Abbott.
Meanwhile, foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues coming from outside the United States. The strengthening of the euro and some other developed market currencies has been constantly hampering the company’s performance in the international markets.
In the first quarter, foreign exchange had an unfavorable year-over-year impact of 5.9% on sales. Abbott noted that during the quarter, the strengthening of the U.S. dollar versus several currencies resulted in an unfavorable impact on sales.
Penumbra’s stock has risen 156.1% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has remained constant at $1.56 for 2023 and $2.56 for 2024 in the past 30 days.
PEN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have improved 35.6% in the past year against the industry’s 22.4% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Haemonetics’ EPS have increased from $3.43 to $3.55 for 2023 in the past 30 days. Shares of the company have increased 31.3% in the past year against the industry’s 22.4% decline.
HAE’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, Haemonetics delivered an earnings surprise of 13.24%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Abbott (ABT) EPD Sales Aid Growth Amid Currency Headwind
Abbott’s (ABT - Free Report) new product launches and acquisitions are expected to boost its sales. However, the macroeconomic environment continues to be challenging for the business. The stock carries a Zacks Rank #3 (Hold).
Over the past year, Abbott has been outperforming the industry it belongs to. The stock has gained 0.9% against the industry’s 22.7% fall.
Abbott exited the first quarter of 2023 with better-than-expected earnings and revenues. Organic sales growth, excluding COVID testing, increased 10%, led by double-digit growth in Medical Devices, Established Pharmaceuticals Division (EPD) and Nutrition. Within EPD, sales increased 11% in the quarter, led by strong performance in Brazil, China and Southeast Asia and across several therapeutic areas, including cardiometabolic, gastroenterology, central nervous system (CNS) and pain management. EPD continued to witness double-digit sales growth momentum in the last two years.
Within Nutrition, sales increased more than 10%. In the United States, pediatric nutrition growth of more than 35% was driven by favorable year-over-year comparisons (lower sales in the first quarter of 2022 were due to a voluntary recall of certain infant formula products). Abbott continued to make progress, increasing manufacturing production and recovering market share in this business. Internationally, total nutrition sales grew mid-single digits overall. Sales in global adult nutrition also grew in mid-single digits, driven by the strong performance of the company’s market-leading Ensure brand.
Abbott Laboratories Price
Abbott Laboratories price | Abbott Laboratories Quote
Within Diagnostics, excluding COVID testing, organic sales growth was led by mid-to-high single-digit growth in Core Lab, Rapid and Point of Care Diagnostics. Despite dull sales in China, Core Lab Diagnostics' sales showed year-over-year improvement, led by strong performance in the United States and Europe.
Within Medical Devices, sales grew 12.5% globally on an organic basis, including mid-teens growth in the United States and double-digit growth internationally. In Diabetes Care, sales of FreeStyle Libre grew more than 25% on an organic basis in the quarter, including approximately 50% growth in the United States and mid-teens growth internationally.
Abbott currently forecasts total organic sales growth, excluding the impact of COVID testing-related sales, to be in high-single digits for 2023.
On the flip side, Abbott’s first-quarter worldwide sales were down 18.1% year over year on a reported basis. Total sales were negatively impacted by COVID-19 testing-related sales decline. Diagnostics sales, as forecast, were negatively impacted by a significant decrease in COVID testing sales compared to the first quarter of 2023.
Worldwide COVID-19 testing sales were $730 million in the first quarter compared with $3.3 billion in the year-ago period. Further, in Core Lab Diagnostics, growth was partially offset by soft market conditions in China.
The challenging macroeconomic environment and stubborn inflationary situation severely impacted the company’s profitability in the first quarter. The ongoing inflation situation across the globe is adversely impacting the input cost for Abbott.
Meanwhile, foreign exchange is a major headwind for Abbott due to a considerable percentage of its revenues coming from outside the United States. The strengthening of the euro and some other developed market currencies has been constantly hampering the company’s performance in the international markets.
In the first quarter, foreign exchange had an unfavorable year-over-year impact of 5.9% on sales. Abbott noted that during the quarter, the strengthening of the U.S. dollar versus several currencies resulted in an unfavorable impact on sales.
Key Picks
Some better-ranked stocks in the overall healthcare sector are Penumbra (PEN - Free Report) , Lantheus (LNTH - Free Report) and Haemonetics (HAE - Free Report) . While Penumbra and Lantheus each sport a Zacks Rank #1 (Strong Buy), Haemonetics carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra’s stock has risen 156.1% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has remained constant at $1.56 for 2023 and $2.56 for 2024 in the past 30 days.
PEN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have improved 35.6% in the past year against the industry’s 22.4% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Haemonetics’ EPS have increased from $3.43 to $3.55 for 2023 in the past 30 days. Shares of the company have increased 31.3% in the past year against the industry’s 22.4% decline.
HAE’s earnings beat estimates in each of the trailing four quarters, the average surprise being 12.21%. In the last reported quarter, Haemonetics delivered an earnings surprise of 13.24%.