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What's in Store for Abbott Laboratories (ABT) in Q4 Earnings?
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Abbott Laboratories (ABT - Free Report) is slated to report its fourth-quarter 2023 results on Jan 24 before market open.
The company posted adjusted earnings per share (EPS) of $1.14 in the last reported quarter, which topped the Zacks Consensus Estimate by 3.64%. In the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on all occasions, the average beat being 6.76%.
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 witnessed strong performance across several markets and therapeutic areas, including cardiometabolic, women's health and CNS (central nervous system) pain management.
Further, Abbott’s expanded collaboration with the Spanish biotech company, mAbxience, may have progressed in regard to commercializing several biosimilars in key emerging markets. Leveraging ABT’s broad in-country footprint, the partnership aims to introduce cutting-edge medicines in oncology, women’s health and respiratory diseases to the countries that have historically lacked access to these treatment options. We expect this development to be reflected favorably in the company’s revenues in the fourth quarter of 2023.
Within this segment, Core Lab Diagnostics may have delivered a robust performance in both domestic and international markets in the to-be-reported quarter. The growth is expected to have been fueled by the continued global demand for routine diagnostic testing and a strong recovery of the blood transfusion testing business. We also expect strong sales growth in the Rapid Diagnostics division, backed by the solid demand for respiratory tests.
Further, the company may have also benefitted from its new, FDA-approved lab automation solution, GLP systems Track. The system, featuring the smart CAR technology, may have helped Abbott address the flexibility and scalability needs of customers in their laboratory operations to meet the ever-growing demand.
In terms of molecular diagnostics, the company recently added a powerful, FDA-approved cancer screening tool for detecting high-risk HPV (human papillomavirus) infections to the Alinity m family of diagnostic assays. The new test uses molecular technology to provide genotype determination on the 14 high-risk, cancer-causing types of HPV. All these developments are likely to have contributed to ABT’s financial results in the fourth quarter of 2023.
Medical Devices
In the fourth quarter of 2023, we assume the segment is to have delivered a robust performance in both the United States and internationally. Across Diabetes Care, Freestyle Libre’s user base earlier surpassed five million globally, with two million in the United States alone. This positive trend must have continued in the to-be-reported quarter as well.
Further, Abbott just had a remarkable development with its latest 15-day FreeStyle Libre 2 Plus sensor authorized to work with the Tandem Diabetes’ t:slim X2 insulin pump with Control-IQ technology in the United States. The new CGM sensor is small, discreet and comfortable to wear and has demonstrated improved accuracy in overall glucose readings.
In Cardiovascular devices, we expect the solid sales momentum of electrophysiology products to continue across all major international geographic regions in the fourth quarter of 2023, including the high growth of ablation catheters in the United States. The performance of structural heart devices is likely to have been driven by MitraClip mitral TEER (transcatheter edge-to-edge repair) therapy and the strength of several new products, such as the latest generation TAVR (transcatheter aortic valve replacement) valve, Navitor.
Across Rhythm Management, we assume a significant surge in the sales of pacemakers in the fourth quarter of 2023. This must have been led by Abbott’s recently launched leadless pacemaker, Aveir, which can be used for both single-chamber and dual-chamber pacing. Further, Neuromodulation products are expected to have made a robust contribution to the company’s fourth-quarter top line due to the Eterna rechargeable neural stimulation device for pain management.
Nutrition
In the fourth quarter of 2023, pediatric nutritional sales are likely to have surged due to the continuous market share capture in the infant formula business in the United States. Internationally, both infant formula products and the PediaSure toddler brand may have witnessed well-balanced growth. Further, strong demand for ABT's market-leading Ensure and Glucerna brands across both the United States and international markets may have favored the adult nutrition business.
Meanwhile, certain macroeconomic challenges are likely to have affected the company’s revenues in the fourth quarter of 2023. The declining trend of COVID-19 testing sales is also likely to have made an unfavorable impact on the company’s results of operations.
Q4 Estimates
The Zacks Consensus Estimate for ABT’s fourth-quarter 2023 revenues is pegged at $10.14 billion. This suggests a 0.5% fall from the year-ago reported figure.
The Zacks Consensus Estimate for its fourth-quarter 2023 EPS of $1.19 indicates a year-over-year increase of 15.5%
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:
SiBone has a long-term expected earnings growth rate of 15.2%. SIBN surpassed earnings in each of the trailing four quarters, the average being 24.21%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2. The company is due to release fourth-quarter 2023 results on Feb 28, 2024.
MMSI has an expected long-term earnings growth rate of 11.5%. The company surpassed earnings in each of the trailing four quarters, the average being 14.41%.
ACADIA Pharmaceuticals (ACAD - Free Report) currently has an Earnings ESP of +15.18% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results on Feb 26, 2024.
ACAD has a remarkable 2024 earnings growth rate of 415.2%. In the trailing four quarters, the company delivered an average earnings surprise of 20.7%.
Image: Bigstock
What's in Store for Abbott Laboratories (ABT) in Q4 Earnings?
Abbott Laboratories (ABT - Free Report) is slated to report its fourth-quarter 2023 results on Jan 24 before market open.
The company posted adjusted earnings per share (EPS) of $1.14 in the last reported quarter, which topped the Zacks Consensus Estimate by 3.64%. In the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on all occasions, the average beat being 6.76%.
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 witnessed strong performance across several markets and therapeutic areas, including cardiometabolic, women's health and CNS (central nervous system) pain management.
Further, Abbott’s expanded collaboration with the Spanish biotech company, mAbxience, may have progressed in regard to commercializing several biosimilars in key emerging markets. Leveraging ABT’s broad in-country footprint, the partnership aims to introduce cutting-edge medicines in oncology, women’s health and respiratory diseases to the countries that have historically lacked access to these treatment options. We expect this development to be reflected favorably in the company’s revenues in the fourth quarter of 2023.
Abbott Laboratories Price and EPS Surprise
Abbott Laboratories price-eps-surprise | Abbott Laboratories Quote
Diagnostics
Within this segment, Core Lab Diagnostics may have delivered a robust performance in both domestic and international markets in the to-be-reported quarter. The growth is expected to have been fueled by the continued global demand for routine diagnostic testing and a strong recovery of the blood transfusion testing business. We also expect strong sales growth in the Rapid Diagnostics division, backed by the solid demand for respiratory tests.
Further, the company may have also benefitted from its new, FDA-approved lab automation solution, GLP systems Track. The system, featuring the smart CAR technology, may have helped Abbott address the flexibility and scalability needs of customers in their laboratory operations to meet the ever-growing demand.
In terms of molecular diagnostics, the company recently added a powerful, FDA-approved cancer screening tool for detecting high-risk HPV (human papillomavirus) infections to the Alinity m family of diagnostic assays. The new test uses molecular technology to provide genotype determination on the 14 high-risk, cancer-causing types of HPV. All these developments are likely to have contributed to ABT’s financial results in the fourth quarter of 2023.
Medical Devices
In the fourth quarter of 2023, we assume the segment is to have delivered a robust performance in both the United States and internationally. Across Diabetes Care, Freestyle Libre’s user base earlier surpassed five million globally, with two million in the United States alone. This positive trend must have continued in the to-be-reported quarter as well.
Further, Abbott just had a remarkable development with its latest 15-day FreeStyle Libre 2 Plus sensor authorized to work with the Tandem Diabetes’ t:slim X2 insulin pump with Control-IQ technology in the United States. The new CGM sensor is small, discreet and comfortable to wear and has demonstrated improved accuracy in overall glucose readings.
In Cardiovascular devices, we expect the solid sales momentum of electrophysiology products to continue across all major international geographic regions in the fourth quarter of 2023, including the high growth of ablation catheters in the United States. The performance of structural heart devices is likely to have been driven by MitraClip mitral TEER (transcatheter edge-to-edge repair) therapy and the strength of several new products, such as the latest generation TAVR (transcatheter aortic valve replacement) valve, Navitor.
Across Rhythm Management, we assume a significant surge in the sales of pacemakers in the fourth quarter of 2023. This must have been led by Abbott’s recently launched leadless pacemaker, Aveir, which can be used for both single-chamber and dual-chamber pacing. Further, Neuromodulation products are expected to have made a robust contribution to the company’s fourth-quarter top line due to the Eterna rechargeable neural stimulation device for pain management.
Nutrition
In the fourth quarter of 2023, pediatric nutritional sales are likely to have surged due to the continuous market share capture in the infant formula business in the United States. Internationally, both infant formula products and the PediaSure toddler brand may have witnessed well-balanced growth. Further, strong demand for ABT's market-leading Ensure and Glucerna brands across both the United States and international markets may have favored the adult nutrition business.
Meanwhile, certain macroeconomic challenges are likely to have affected the company’s revenues in the fourth quarter of 2023. The declining trend of COVID-19 testing sales is also likely to have made an unfavorable impact on the company’s results of operations.
Q4 Estimates
The Zacks Consensus Estimate for ABT’s fourth-quarter 2023 revenues is pegged at $10.14 billion. This suggests a 0.5% fall from the year-ago reported figure.
The Zacks Consensus Estimate for its fourth-quarter 2023 EPS of $1.19 indicates a year-over-year increase of 15.5%
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:
SiBone (SIBN - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results on Feb 26, 2024. You can see the complete list of today’s Zacks #1 Rank stocks here.
SiBone has a long-term expected earnings growth rate of 15.2%. SIBN surpassed earnings in each of the trailing four quarters, the average being 24.21%.
Merit Medical Systems (MMSI - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #2. The company is due to release fourth-quarter 2023 results on Feb 28, 2024.
MMSI has an expected long-term earnings growth rate of 11.5%. The company surpassed earnings in each of the trailing four quarters, the average being 14.41%.
ACADIA Pharmaceuticals (ACAD - Free Report) currently has an Earnings ESP of +15.18% and a Zacks Rank #2. The company is expected to release its fourth-quarter 2023 results on Feb 26, 2024.
ACAD has a remarkable 2024 earnings growth rate of 415.2%. In the trailing four quarters, the company delivered an average earnings surprise of 20.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.