Abbott Laboratories reported strong quarterly results on Wednesday, exceeding expectations for the third consecutive quarter. After a brief initial dip, shares rose over 1%.
For the quarter ending September 30, revenue increased by 4.9% to $10.64 billion, which was above the $10.55 billion forecast. Excluding Covid testing, organic sales rose 8.2% year-over-year. Adjusted earnings per share were $1.21, beating estimates and marking a 6.14% annual rise.
Year-to-date, Abbott’s stock has grown by over 10%, outpacing both the S&P 500 and a health-care ETF. This performance comes despite a recent court ruling that required the company to pay $495 million regarding issues related to its premature infant formula.
Abbott’s medical device sales surged by 12% to $4.75 billion, driven by a strong performance in Continuous Glucose Monitors (CGM), particularly the FreeStyle Libre, which saw 21% organic sales growth.
The company launched an over-the-counter CGM called Lingo in September, which has been well-received. Abbott aims to generate $10 billion in CGM sales by 2028, viewing Lingo as a significant opportunity.
Abbott also announced a $7 billion share buyback program, reflecting confidence in its stock valuation. However, its nutrition segment underperformed, with sales slightly down.
CEO Robert Ford defended Abbott’s infant formula amid ongoing lawsuits. Recent support from U.S. health agencies is expected to aid the company’s position in future cases.
Overall, Abbott Labs demonstrates solid fundamentals, and analysts maintain a positive outlook on its growth prospects.
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