Abbott Labs, a healthcare-products company based in Abbott Park, Illinois, has recently released its third quarter earnings report. Despite facing challenges, the company remains resilient. Here are the key highlights:
In the third quarter, Abbott Labs recorded a profit of $1.44 billion, or 82 cents per share, which is almost identical to the profit of $1.44 billion, or 81 cents per share, achieved during the same period last year.
Impressive Adjusted Earnings
Excluding one-time items, Abbott Labs' adjusted earnings stood at $1.14 per share. This exceeds the expectations of analysts surveyed by FactSet, who anticipated adjusted earnings of $1.10 per share.
Slight Decline in Sales
While revenue declined slightly from $10.41 billion in the year-ago quarter to $10.14 billion in the third quarter, it still surpassed the market consensus of $9.82 billion as gathered by FactSet.
Organic Sales Growth
Despite the overall sales decline, there was notable growth of almost 14% in organic sales. This excludes Covid-19 tests, which are experiencing reduced demand, as well as the impact of foreign-exchange translations. Additionally, Abbott's acquisition of Cardiovascular Systems and its departure from the pediatric nutrition business in China influenced the organic sales growth positively.
Boost in Pediatric Nutrition Sales
Abbott Labs experienced a significant increase of nearly 21% in global sales of pediatric nutrition products. This surge can be attributed to the recovery of market share by its infant formula business following last year's voluntary recall of Similac and other formulas.
Strong Performance of Adult Nutrition Business
The company reported an impressive sales jump of nearly 11% in its adult nutrition business. This growth can be attributed to the strong sales performance of its nutrition-drink Ensure.
Abbott Labs has revised its full-year earnings guidance. The company now expects earnings in the range of $3.14 to $3.18 per share, compared to the previous range of $3.02 to $3.22 per share. Additionally, the midpoint of its adjusted earnings outlook has been raised to $4.42 to $4.46 per share, up from the previous forecast of $4.30 to $4.50 per share.
Abbott Labs continues to demonstrate resilience and adaptability in a challenging healthcare landscape.