NEW: Abbotts Earnings Reveal Medical Devices Are Printing Cash Faster Than a Crypto Scam...

ICYMI, while UnitedHealthcare Group got absolutely annihilated yesterday due to its guidance numbers (plunging -8%), Abbott Labs woke up this morning all horned up and flipped the script. 

(Source: Giphy) 

In short, while most thought Abbott Labs have just been plodding along in 2024, the company's Q3 sales hit a cool $10.64 billion, beating Wall Street’s expectations. For reference, the consensus was $10.55 billion, so it’s not like they just eked out a win. We’re talking about a solid 4.9% YoY growth here. 

(Source: Nasdaq) 

What’s more is that Abbott Labs’ organic sales for the base business (a.k.a. Not Covid related stat padding) surged by a girthy 8.3%. Meaning, they just posted some pretty thick and juicy numbers that has the Street frothing at the mouth. 

(Source: Giphy) 

On the other hand, Medical Devices also proved to be a winner for Abbott in Q3 as  device sales jumped 11.7% reported and 13.3% organic. But the real star of the show? Diabetes Care. With 19.1% organic growth (17.1% reported), it’s basically running circles around the rest of the market. Continuous glucose monitors alone pulled in $1.6 billion in sales. In case you’re wondering, that’s what we call a cash cow.

Additionally, Abbotts Structural Heart saw a 16.5% organic sales boost, and Heart Failure followed closely with 14.4% organic growth. Translation: Abbott’s got more double-digit gains than any friggin Wall Street Bets wannabe investor. 

(Source: Benzinga) 

“Ok cool, but what about EPS numbers?” I’m glad you asked. Abbott’s adjusted EPS came in at $1.21, just edging out analyst estimates of $1.20. Sure, it’s only a penny, but in the world of earnings reports, a penny is the difference between a victory lap and a walk of shame. For context, their GAAP EPS was $0.94, up from $0.82 a year ago.

According to Rober Ford, Abbott CEO, “Our results this quarter demonstrate the strength of our diversified business model," Meaning, he’s expecting the company to hit the upper end of their guidance, and honestly, with these numbers, it’s hard to argue.

(Source: Market Watch) 

Now given all of this, If you’ve been keeping tabs on Abbott, you know that COVID-19 testing played a huge role in their revenue during the pandemic. But with the world moving on (thank Gaawd), COVID-related sales have slowed — down to $265 million compared to $305 million last year.

But the interesting thing is,excluding COVID testing, Abbott’s global Diagnostics division still posted positive numbers. Organic sales growth was 3.3%, proving that the company’s diagnostics business is built for more than just a once-in-a-lifetime pandemic.

(Source: Giphy) 

Which is why, when it comes to looking ahead, Abbott Labs can’t help but like what they see. For instance, they’ve upped the midpoint of their full-year adjusted EPS guidance to $4.64-$4.70, up from the previous range of $4.61-$4.71. And let’s not forget, they’re calling for a Q4 adjusted EPS of $1.31-$1.37, ahead of the street’s $1.34 consensus.

So in the end, while most of the market was taken behind the barn and shot yesterday, (especially $UNH), Abbott’s stock is continuing to add to its 27.22% ascent over the last 12 months. Especially as Abbotts diversified business model (think: New Lingo product and partnership with Medtronic) is paying off in spades. 

(Source: Barrons) 

And between their strong performance in Medical Devices (seriously, Diabetes Care alone is an absolute UNIT), a growing diagnostics portfolio, and new partnerships, they’ve got all the momentum they need. And with revised guidance pointing to strong Q4 results, it’s clear that Abbott is a force to be reckoned with going forward. 

In the meantime, keep an eye on this cash cow of a business, especially since it barely budged during yesterday's market-wide clusterf**k fiasco - and as always, stay safe and stay frosty, friends! Until next time…

P.S. BOOM! Our massive alert this morning has already hit a peak gain of 65.61% so far… and now with a minor retracement, it looks like it’s headed for more! Click here asap to get in on the action. 

Stocks.News doesn’t hold any positions in companies mentioned in the article.