From CNBC: 2024-04-17 14:53:31

Abbott Laboratories exceeded revenue expectations for the first quarter, reporting a 2% increase to $9.96 billion, higher than the estimated $9.88 billion. Organic sales rose by 10.8%, outperforming expectations of a 9.45% increase. Earnings per share also beat estimates, falling only 5% to 98 cents compared to an expected 95 cents. Shares fell slightly post-report due to a lower-than-expected earnings forecast for the current quarter but investors should focus on the positive full-year guidance increase. The company projects organic sales growth to be between 8.5% to 10% and raised its EPS forecast to $4.55 to $4.70 for the year, both ahead of Wall Street estimates. Despite initial stock decline, we continue to rate Abbott Labs highly with a $130 price target. Organic growth remains impressive, especially in the FreeStyle Libre glucose monitoring system. Abbott stands by its product integrity amidst concerns over a baby formula lawsuit asserting it causes NEC. The medical devices segment drove strong results in the first quarter, offsetting minor misses in nutrition, diagnostics, and established pharmaceuticals. Key sub-segments within medical devices outperformed expectations, with the FreeStyle Libre sales seeing a 23% increase year over year. The recent FDA clearance for the i-STAT TBI cartridge presents a promising growth opportunity for Abbott Labs. Medical device sales on an organic basis rose by 14.3%, demonstrating the company’s strong performance and positive outlook.



Read more at CNBC:: Abbott Labs’ surprise guidance bump is a major positive for investors