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What's in Store for Abbott Laboratories (ABT) in Q1 Earnings?
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Abbott Laboratories (ABT - Free Report) is slated to report its first-quarter 2024 results on Apr 17, before market open.
The company posted adjusted earnings per share (EPS) of $1.19 in the last reported quarter, which matched the Zacks Consensus Estimate. In the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on three occasions and came in line on one occasion, the average beat being 3.15%.
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. The company has been consistently benefiting from its unique business model of offering broad product portfolios across a targeted set of therapeutic areas that are tailored to the local needs of each emerging market it operates.
Further, Abbott might have progressed with its initiative to commercialize several biosimilars in 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 first quarter of 2024.
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. More specifically, the strong performance of the Alinity suite of systems, paired with a broad test menu offering, might have significantly driven growth in the first quarter.
The company may have also benefited 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 ever-growing demand.
Medical Devices
In the first quarter of 2024, we assume the segment to have recorded a robust performance in both the United States and internationally. Across Diabetes Care, Freestyle Libre’s user base 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, in the first quarter, Abbott had a remarkable development with itst:slim X2 insulin pump with Control-IQ technology. The company announced that this is the first automated insulin delivery system to integrate with the newly available FreeStyle Libre 2 Plus sensor, Abbott’s latest CGM technology. This is expected to have driven market demand for the same in the to-be-reported quarter.
In Cardiovascular devices, we expect the solid sales momentum of electrophysiology products to continue across all major international geographic regions in the first quarter of 2024, 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 as well as several recently launched products, including Amulet, TriClip and Navitor.
Across Rhythm Management, we assume a surge in the sales of pacemakers in the first quarter of 2024, 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 first-quarter top line due to the Eterna rechargeable neural stimulation device for pain management.
Nutrition
In the first quarter of 2024, 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 are likely to 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 first quarter of 2024. The year-over-year decline in COVID-19 testing sales is also likely to have had an unfavorable impact on the company’s results of operations.
Q1 Estimates
The Zacks Consensus Estimate for ABT’s first-quarter 2024 revenues is pegged at $9.85 billion. This suggests a 1.1% rise from the year-ago reported figure.
The Zacks Consensus Estimate for its first-quarter 2024 EPS of 96 cents indicates a year-over-year decline of 6.8%
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 #2.
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:
High Tide has an expected earnings growth rate of 100% for fiscal 2024. High Tide surpassed earnings in each of the trailing four quarters, the average being 91.67%.
ShockWave Medical (SWAV - Free Report) has an Earnings ESP of +14.51% and a Zacks Rank #2. The company is due to release first-quarter 2024 results on May 13.
SWAV has an expected long-term earnings growth rate of 27.2%. ShockWave Medical surpassed earnings in three of the trailing four quarters and missed in one, the average beat being 13.55%.
Edwards Lifesciences (EW - Free Report) currently has an Earnings ESP of +1.68% and a Zacks Rank #2. The company is scheduled to release its first-quarter 2024 results on Apr 25.
EW has a historical long-term earnings growth rate of 9.9%. In the trailing four quarters, Edwards Lifesciences delivered an average earnings surprise of 0.8%.
Image: Bigstock
What's in Store for Abbott Laboratories (ABT) in Q1 Earnings?
Abbott Laboratories (ABT - Free Report) is slated to report its first-quarter 2024 results on Apr 17, before market open.
The company posted adjusted earnings per share (EPS) of $1.19 in the last reported quarter, which matched the Zacks Consensus Estimate. In the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on three occasions and came in line on one occasion, the average beat being 3.15%.
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. The company has been consistently benefiting from its unique business model of offering broad product portfolios across a targeted set of therapeutic areas that are tailored to the local needs of each emerging market it operates.
Further, Abbott might have progressed with its initiative to commercialize several biosimilars in 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 first quarter of 2024.
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. More specifically, the strong performance of the Alinity suite of systems, paired with a broad test menu offering, might have significantly driven growth in the first quarter.
The company may have also benefited 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 ever-growing demand.
Medical Devices
In the first quarter of 2024, we assume the segment to have recorded a robust performance in both the United States and internationally. Across Diabetes Care, Freestyle Libre’s user base 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, in the first quarter, Abbott had a remarkable development with itst:slim X2 insulin pump with Control-IQ technology. The company announced that this is the first automated insulin delivery system to integrate with the newly available FreeStyle Libre 2 Plus sensor, Abbott’s latest CGM technology. This is expected to have driven market demand for the same in the to-be-reported quarter.
In Cardiovascular devices, we expect the solid sales momentum of electrophysiology products to continue across all major international geographic regions in the first quarter of 2024, 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 as well as several recently launched products, including Amulet, TriClip and Navitor.
Across Rhythm Management, we assume a surge in the sales of pacemakers in the first quarter of 2024, 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 first-quarter top line due to the Eterna rechargeable neural stimulation device for pain management.
Nutrition
In the first quarter of 2024, 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 are likely to 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 first quarter of 2024. The year-over-year decline in COVID-19 testing sales is also likely to have had an unfavorable impact on the company’s results of operations.
Q1 Estimates
The Zacks Consensus Estimate for ABT’s first-quarter 2024 revenues is pegged at $9.85 billion. This suggests a 1.1% rise from the year-ago reported figure.
The Zacks Consensus Estimate for its first-quarter 2024 EPS of 96 cents indicates a year-over-year decline of 6.8%
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 #2.
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:
High Tide (HITI - Free Report) has an Earnings ESP of +175.00% and a Zacks Rank #1. The company is expected to release second-quarter fiscal 2024 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
High Tide has an expected earnings growth rate of 100% for fiscal 2024. High Tide surpassed earnings in each of the trailing four quarters, the average being 91.67%.
ShockWave Medical (SWAV - Free Report) has an Earnings ESP of +14.51% and a Zacks Rank #2. The company is due to release first-quarter 2024 results on May 13.
SWAV has an expected long-term earnings growth rate of 27.2%. ShockWave Medical surpassed earnings in three of the trailing four quarters and missed in one, the average beat being 13.55%.
Edwards Lifesciences (EW - Free Report) currently has an Earnings ESP of +1.68% and a Zacks Rank #2. The company is scheduled to release its first-quarter 2024 results on Apr 25.
EW has a historical long-term earnings growth rate of 9.9%. In the trailing four quarters, Edwards Lifesciences delivered an average earnings surprise of 0.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.