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.
What's in Store for Abbott Laboratories (ABT) in Q3 Earnings?
Read MoreHide Full Article
Abbott Laboratories (ABT - Free Report) is slated to report its third-quarter 2023 results on Oct 18, before market open.
The company posted adjusted earnings per share (EPS) of $1.08 in the last reported quarter, which topped the Zacks Consensus Estimate by 3.85%. In the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on all occasions, the average beat being 12.44%.
Let's see how things have shaped up prior to this announcement.
Factors at Play
Established Pharmaceuticals
Similar to the last reported quarter, the division is likely to have favorably contributed to the total underlying base business organic sales growth (excluding COVID testing sales). The business is expected to have been fueled by solid execution of strategies. It is likely to have continued to capitalize on the favorable demographic and socioeconomic trends in emerging markets during the to-be-reported quarter.
Outside the United States, several markets, including India and China and therapeutic areas, including gastroenterology, women’s health and central nervous system pain management, are expected to have given a strong performance.
Our model projects the Established Pharmaceuticals business to generate $1.21 billion in revenues for the third quarter of 2023. This compares to $1.33 billion reported in the year-ago quarter.
Abbott’s Diagnostics business is likely to have witnessed organic sales growth in the to-be-reported quarter, led by the Core Lab Diagnostics division. Of late, the segment has been performing well in the United States, Europe and China, which reflected the increased demand for routine diagnostic testing globally. The company’s blood transfusion testing business is likely to have continued making great strides domestically, signaling recovery from the impact of lower plasma donations that occurred during the COVID-19 pandemic.
However, we expect it to report a further decline in demand for rapid diagnostic tests to detect COVID-19, affecting the company’s third-quarter top line. Our model projects the Diagnostics business to report $2.89 billion in revenues for the third quarter, suggesting a 21.3% decline year over year.
Medical Devices
In the third quarter of 2023, the segment is expected to have delivered double-digit growth in the United States and internationally. Continued development of FreeStyle Libre — Abbott’s continuous glucose monitoring system — is likely to have driven higher sales in the Diabetes Care business. Notably, during the second quarter of 2023, Libre became the first and only continuous glucose monitoring system to be nationally reimbursed in France for all people with diabetes who use insulin.
In September 2023, the company announced a definitive agreement to acquire Bigfoot Biomedical, having worked together on connected diabetes solutions since 2017. The acquisition combines two leaders in different aspects of diabetes care — continuous glucose monitoring and insulin dosing support — and will continue to advance technology-driven solutions for making diabetes management even more personal and precise. This is expected to have favored the company’s revenues in the third quarter of 2023.
The Cardiovascular devices sales are expected to have reflected robust growth in electrophysiology and structural heart, similar to the last reported second quarter of 2023. Internationally, Europe and China are likely to have generated a solid performance in the Electrophysiology division. During the second quarter, the company received the U.S. FDA approval of its TactiFlex Ablation Catheter. This is expected to have contributed to the Q3 top line.
For the third quarter of 2023, we expect the performance of the Structural Heart business to have been driven by sales of MitraClip, Abbott's market-leading device for the minimally invasive treatment of mitral regurgitation, a leaky heart valve. In addition, the recently launched products, Amulet, Navitor, and TriClip, are likely to have also contributed favorably to the segment’s growth.
Worldwide sales of Rhythm Management products are likely to have been led by Abbott’s recently launched leadless pacemaker, Aveir. In July 2023, the company announced the FDA approval of its AVEIR dual chamber leadless pacemaker system, the world's first dual chamber leadless pacing system that treats people with abnormal or slow heart rhythms. The unique technology is specifically designed to be upgradable and retrievable in order to evolve with patient changes in therapy needs over time.
In Neuromodulation, sales growth in the to-be-reported third quarter of 2023 is likely to have been driven by the newly launched Eterna rechargeable spinal cord stimulation system, for the treatment of chronic pain. Throughout the first half of 2023, Abbott introduced several new innovations for treating painful diabetic neuropathy and chronic back pain for those who have not had or are not eligible for back surgery. We believe that all these developments have positively contributed to the company’s business performance in the to-be-reported third quarter of 2023.
Going by our model, the Medical Devices segment is projected to report $3.77 billion in revenues in the third quarter, indicating 4.2% growth year over year.
Nutrition
Across this segment, sales of pediatric nutritional products are likely to have driven growth in the United States in the third quarter of 2023. The company has been making good progress in terms of increasing manufacturing production. During the second quarter of 2023, the business recovered nearly 75% of the market share in the infant formula business that was lost in 2022, as a result of the voluntary recall.
In International markets, both pediatric and adult nutrition businesses are expected to have contributed to the company’s total sales in this segment in the third quarter. Our model expects the Nutrition business to generate $1.85 billion in revenues in the quarter to be reported, suggesting 3.2% growth year over year.
Meanwhile, the unpredictability surrounding the demand for COVID-19 tests is likely to have affected the company’s top line in the to-be-reported third quarter of 2023. Macroeconomic factors, including the movement of the U.S. dollar against other currencies, inflationary pressures and labor shortages, are likely to have made an unfavorable impact on the company’s results of operations.
Q3 Estimates
The Zacks Consensus Estimate for ABT’s third quarter 2023 revenues is pegged at $9.78 billion. This suggests a 6.1% fall from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2023 EPS of $1.10 indicates a year-over-year decrease of 4.4%.
What Our Model Suggests
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: Abbott has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
Insulet has a long-term expected earnings growth rate of 35.7%. PODD has an earnings yield of 1.13% against the industry’s -2.58%.
HealthEquity (HQY - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results on Dec 5.
HQY has an expected long-term earnings growth rate of 23.5%. The company has an earnings yield of 2.68% against the industry’s -0.92%.
Cencora Inc. (COR - Free Report) currently has an Earnings ESP of +0.30% and a Zacks Rank #2. The company is expected to release its fourth-quarter fiscal 2023 results on Nov 2.
COR has an expected earnings growth rate of 7.46% for the next year. COR has an earnings yield of 6.97% compared with the industry’s -0.92%.
Image: Bigstock
What's in Store for Abbott Laboratories (ABT) in Q3 Earnings?
Abbott Laboratories (ABT - Free Report) is slated to report its third-quarter 2023 results on Oct 18, before market open.
The company posted adjusted earnings per share (EPS) of $1.08 in the last reported quarter, which topped the Zacks Consensus Estimate by 3.85%. In the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on all occasions, the average beat being 12.44%.
Let's see how things have shaped up prior to this announcement.
Factors at Play
Established Pharmaceuticals
Similar to the last reported quarter, the division is likely to have favorably contributed to the total underlying base business organic sales growth (excluding COVID testing sales). The business is expected to have been fueled by solid execution of strategies. It is likely to have continued to capitalize on the favorable demographic and socioeconomic trends in emerging markets during the to-be-reported quarter.
Outside the United States, several markets, including India and China and therapeutic areas, including gastroenterology, women’s health and central nervous system pain management, are expected to have given a strong performance.
Our model projects the Established Pharmaceuticals business to generate $1.21 billion in revenues for the third quarter of 2023. This compares to $1.33 billion reported in the year-ago quarter.
Abbott Laboratories Price and EPS Surprise
Abbott Laboratories price-eps-surprise | Abbott Laboratories Quote
Diagnostics
Abbott’s Diagnostics business is likely to have witnessed organic sales growth in the to-be-reported quarter, led by the Core Lab Diagnostics division. Of late, the segment has been performing well in the United States, Europe and China, which reflected the increased demand for routine diagnostic testing globally. The company’s blood transfusion testing business is likely to have continued making great strides domestically, signaling recovery from the impact of lower plasma donations that occurred during the COVID-19 pandemic.
However, we expect it to report a further decline in demand for rapid diagnostic tests to detect COVID-19, affecting the company’s third-quarter top line. Our model projects the Diagnostics business to report $2.89 billion in revenues for the third quarter, suggesting a 21.3% decline year over year.
Medical Devices
In the third quarter of 2023, the segment is expected to have delivered double-digit growth in the United States and internationally. Continued development of FreeStyle Libre — Abbott’s continuous glucose monitoring system — is likely to have driven higher sales in the Diabetes Care business. Notably, during the second quarter of 2023, Libre became the first and only continuous glucose monitoring system to be nationally reimbursed in France for all people with diabetes who use insulin.
In September 2023, the company announced a definitive agreement to acquire Bigfoot Biomedical, having worked together on connected diabetes solutions since 2017. The acquisition combines two leaders in different aspects of diabetes care — continuous glucose monitoring and insulin dosing support — and will continue to advance technology-driven solutions for making diabetes management even more personal and precise. This is expected to have favored the company’s revenues in the third quarter of 2023.
The Cardiovascular devices sales are expected to have reflected robust growth in electrophysiology and structural heart, similar to the last reported second quarter of 2023. Internationally, Europe and China are likely to have generated a solid performance in the Electrophysiology division. During the second quarter, the company received the U.S. FDA approval of its TactiFlex Ablation Catheter. This is expected to have contributed to the Q3 top line.
For the third quarter of 2023, we expect the performance of the Structural Heart business to have been driven by sales of MitraClip, Abbott's market-leading device for the minimally invasive treatment of mitral regurgitation, a leaky heart valve. In addition, the recently launched products, Amulet, Navitor, and TriClip, are likely to have also contributed favorably to the segment’s growth.
Worldwide sales of Rhythm Management products are likely to have been led by Abbott’s recently launched leadless pacemaker, Aveir. In July 2023, the company announced the FDA approval of its AVEIR dual chamber leadless pacemaker system, the world's first dual chamber leadless pacing system that treats people with abnormal or slow heart rhythms. The unique technology is specifically designed to be upgradable and retrievable in order to evolve with patient changes in therapy needs over time.
In Neuromodulation, sales growth in the to-be-reported third quarter of 2023 is likely to have been driven by the newly launched Eterna rechargeable spinal cord stimulation system, for the treatment of chronic pain. Throughout the first half of 2023, Abbott introduced several new innovations for treating painful diabetic neuropathy and chronic back pain for those who have not had or are not eligible for back surgery. We believe that all these developments have positively contributed to the company’s business performance in the to-be-reported third quarter of 2023.
Going by our model, the Medical Devices segment is projected to report $3.77 billion in revenues in the third quarter, indicating 4.2% growth year over year.
Nutrition
Across this segment, sales of pediatric nutritional products are likely to have driven growth in the United States in the third quarter of 2023. The company has been making good progress in terms of increasing manufacturing production. During the second quarter of 2023, the business recovered nearly 75% of the market share in the infant formula business that was lost in 2022, as a result of the voluntary recall.
In International markets, both pediatric and adult nutrition businesses are expected to have contributed to the company’s total sales in this segment in the third quarter. Our model expects the Nutrition business to generate $1.85 billion in revenues in the quarter to be reported, suggesting 3.2% growth year over year.
Meanwhile, the unpredictability surrounding the demand for COVID-19 tests is likely to have affected the company’s top line in the to-be-reported third quarter of 2023. Macroeconomic factors, including the movement of the U.S. dollar against other currencies, inflationary pressures and labor shortages, are likely to have made an unfavorable impact on the company’s results of operations.
Q3 Estimates
The Zacks Consensus Estimate for ABT’s third quarter 2023 revenues is pegged at $9.78 billion. This suggests a 6.1% fall from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2023 EPS of $1.10 indicates a year-over-year decrease of 4.4%.
What Our Model Suggests
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. However, that is not the case here, as you can see below:
Earnings ESP: Abbott has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
Insulet (PODD - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #2. The company will release third-quarter 2023 results on Nov 2, 2023. You can see the complete list of today’s Zacks #1 Rank stocks here.
Insulet has a long-term expected earnings growth rate of 35.7%. PODD has an earnings yield of 1.13% against the industry’s -2.58%.
HealthEquity (HQY - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results on Dec 5.
HQY has an expected long-term earnings growth rate of 23.5%. The company has an earnings yield of 2.68% against the industry’s -0.92%.
Cencora Inc. (COR - Free Report) currently has an Earnings ESP of +0.30% and a Zacks Rank #2. The company is expected to release its fourth-quarter fiscal 2023 results on Nov 2.
COR has an expected earnings growth rate of 7.46% for the next year. COR has an earnings yield of 6.97% compared with the industry’s -0.92%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.