Abbott Stock Skids On Mixed Third-Quarter Report, But One Segment Shined

Abbott stock slid on Wednesday after the S&P 500 health giant missed the Street’s third-quarter sales expectations, but met earnings expectations and reiterated its full-year guidance.

The loss of sales is likely due to exchange rates, Leerink Partners analyst Mike Kratky said in a report to clients. This, he said, “is more likely to be forgiven from our perspective.”

But shares Abbott Laboratories (ABT) shares fell by 2.4% to 129.51.

Shares broke out of a cup-with-handle base with a buy point at 134.71 on Sept. 12, according to MarketSurge. Abbott stock now remains below the 5% chase zone, facing a cap at its 200-day moving average.

Abbott Stock: The brilliance of medical devices

During the third quarter, Abbott Laboratories had sales of $11.37 billion, narrowly missing expectations of $11.39 billion, according to FactSet. However, sales rose 5.5% organically, which was in line with expectations, Evercore ISI analyst Vijay Kumar said in a note to clients.

“Performance in the quarter was driven by outperformance in medical devices and was offset by deficiencies in nutrition, diagnostics and EPD (existing drugs),” he said.

Medtech sales were $5.45 billion, up 12.5% ​​organically, beating analysts’ expectations by 1%. But sales of diagnostics, nutritional products and pharmaceuticals all came in 1% to 2% below expectations, Leerink’s Kratky said. Food sales include products such as infant formula, while it sells foreign-based medicines.

Covid tests affect diagnosis

Although the other three sectors missed expectations, each grew year over year. Food sales rose 4%, while existing pharmaceutical sales jumped 7.1%. Excluding the impact of Covid tests, diagnostic sales rose 0.4%. With the inclusion of Covid tests, sales declined 7.8% organically.

Abbott also received an adjusted price of $1.30 per share, which met expectations.

For the year, the company reaffirmed its sales guidance of 7.5% to 8% organic sales growth, excluding the impact of Covid testing. Abbott maintained the midpoint of its earnings forecast, but narrowed the range to $5.12 to $5.18 per share. Analysts expected earnings of $5.15 per share and sales of $44.69 billion.

Follow Alison Gatlin on X/Twitter at @AGatlin_IBD.

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