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Highlights

  • In Q1 FY24, Abbott reported sales of USD 10 billion, a 2.2% growth over pcp
  • Due to higher total operating expenses, the company’s net income declined by around 7% compared to pcp
  • On May 15, 2024, Abbott paid its 401st consecutive quarterly dividend of USD 0.55 per share

Abbott Laboratories (NYSE: ABT) headquartered in the USA, is a multinational firm that specializes in medical devices and healthcare. The company creates innovative products in branded generic pharmaceuticals, diagnostics, medical devices, and nutrition. It has a market capitalization of USD 181.32 billion.

Driven by strong performance in its underlying base business, Abbott reported sales of USD 10 billion for the first quarter of 2024 (Q1 FY24), marking a 2.2% growth over pcp. Organic sales for the underlying base business surged by 10.8%, marking the fifth consecutive quarter of double-digit growth. First-quarter GAAP diluted earnings per share (EPS) stood at USD 0.70, while adjusted diluted EPS, excluding certain items, was USD 0.98.

However, due to higher total operating expenses, the company’s net income declined by around 7% compared to pcp.

Abbott has a longstanding tradition of increasing its dividend payout for 52 succeeding years. On May 15, 2024, the company paid its 401st consecutive quarterly dividend of USD 0.55 per share.

Abbott has notably outperformed industry medians across several key profitability metrics in Q1 FY24 as illustrated in the charts below:

Recent business update

In April, Abbott secured U.S. Food and Drug Administration (FDA) approval for two of its pioneering products. One is the TriClip™, a minimally invasive treatment for tricuspid regurgitation. The other is the i-STAT® TBI test. i-STAT® can be used for rapid assessment of traumatic brain injuries. Notably, the test can be conducted outside typical hospital environments, thus improving accessibility and convenience for patients.

Company outlook

Abbott has upgraded its full-year 2024 EPS guidance. It projected its GAAP diluted EPS of USD 3.25 to USD 3.40 and adjusted diluted EPS of USD 4.55 to USD 4.70. The company also revised its full-year 2024 organic sales growth guidance, excluding sales related to COVID-19 testing, to a range of 8.5% to 10.0%.

Stock performance

The stock price of ABT has declined by 12.42% in the past three months whereas it has given a return of 5.30% on a year-to-date basis. Currently, the stock is trading near the lower end of its 52-week high (USD 121.64) and 52-week low (USD 89.67) range.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 23, 2024. The reference data in this report has been partly sourced from EODHD/Others.