Abbott beats Q2 profit estimates, raises full-year forecast
ABT•Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Adjusted EPS | Beat | $1.31 | $1.28 (23 Analysts) |
| Q2 EPS | $0.53 |
Result drivers
- Medical devices growth - Sales rose 8.4% on a comparable basis, led by low-teens growth in Electrophysiology and high-single-digit gains in Rhythm Management, Diabetes Care, and Heart Failure
- Nutrition sales decline - Nutrition sales fell 3.6% on a comparable basis, reflecting lower sales volumes and the impact of prior strategic pricing actions
- Diagnostics mixed performance - Core Laboratory and Cancer Diagnostics grew, but Rapid and Molecular Diagnostics declined due to lower respiratory virus test sales
Analyst coverage
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
- Wall Street's median 12-month price target for Abbott Laboratories is $115.00, about 28.8% above its July 15 closing price of $89.27
- The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago
