Abbott exceeded Q2 expectations with revenue growth in medical devices and potential for growth

From Nasdaq: 2024-07-28 21:01:14

Abbott (NYSE: ABT) exceeded expectations in Q2, reporting revenue of $10.4 billion and earnings of $1.14 per share. While medical devices saw growth, diagnostics sales declined. ABT stock performance has been lackluster compared to the S&P 500. The company’s revised full-year outlook and margin expansion suggest room for growth.

Abbott’s revenue in Q2 increased by 4% year-over-year, with notable growth in the medical devices and nutrition segments. Despite a decline in diagnostics sales due to lower COVID-19 testing demand, excluding COVID-19 tests, diagnostics sales increased. Abbott’s adjusted pre-tax income margin expanded, resulting in a 5.6% rise in adjusted earnings per share.

Analysts estimate Abbott’s valuation at $119 per share, indicating over 10% upside potential from the current $107 level. The company’s adjusted earnings per share guidance has been raised, reflecting positive prospects for growth. With a 9.5% to 10% organic revenue increase expected for 2024, Abbott continues to show resilience and potential in the market.



Read more at Nasdaq: Should You Pick Abbott Stock At $105 After A Solid Q2?