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What's in Store for Abbott Laboratories (ABT) in Q1 Earnings?
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Abbott Laboratories (ABT - Free Report) is slated to report first-quarter 2022 results on Apr 20, before market open.
In the last-reported quarter, the company delivered an earnings surprise of 11.86%. Over the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on three occasions and missed on one, the average beat being 19.78%.
Let's see how things have shaped up prior to this announcement.
Factors at Play
Going by the pandemic scenario, the demand for testing is expected to have remained strong in Q1 2022. In the fourth quarter of 2021, COVID testing sales were $2.3 billion with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally, and ID NOW globally compromising approximately 90% of the sales.
In the months of the first quarter, a significant rise in the number of COVID-19 cases in the United States and other major developed countries with the emergence of the new COVID variants are expected to have accelerated COVID-19 testing globally, giving a boost to Abbott’s Diagnostics business revenues.
Excluding COVID testing sales, worldwide Diagnostic sales are expected to have demonstrated strong growth in Q1 on the continuous rollout of Alinity, Abbott’s suite of diagnostic instruments.
Within Nutrition, from the beginning of the pandemic till the last reported quarter, Abbott gained consistently in terms of adult nutrition products sales. In the first quarter too, the company is anticipated to have registered stellar U.S. and international growth in Ensure (adult complete and balanced nutrition brand) and Glucerna (diabetes nutrition brand). According to the company, the two factors that have been driving the adult nutrition growth rate are new users entering the category in this period and existing customers increasing their usage.
Within pediatric nutrition, the company is expected to have registered strong growth in the United States from growing sales of Pedialyte, the company’s oral rehydration brand, and market share gains for Similac, its market-leading infant formula brand.
Abbott’s other consumer-facing businesses, which include diabetes care and established pharmaceuticals, have been catching up, backed by new product instructions. This uptrend is likely to have majorly contributed to the company's first-quarter performance.
Within Established Pharmaceuticals Division (EPD), the company has been witnessing visible signs of a rebound, reflecting sequential improvement based on its stable business model. New product launches across key emerging markets have been majorly boosting the EPD business in recent months. The first-quarter performance is likely to have been driven by growth in regions where COVID-19 cases have been shooting up. The business is anticipated to have grown in these regions where patients are seeking branded generic medicines
Revenues are likely to have improved in the company’s DiabetesCare business, as it has been on a substantially strong growth trajectory in recent times. Abbott has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, widely known as the FreeStyle Libre System.
Estimates
For first-quarter 2022, the Zacks Consensus Estimate for total revenues of $11.11 billion indicates a 6.2% rise from the prior-year comparable quarter’s reported figure. The consensus mark for earnings is pegged at $1.47, suggesting an 11.4% rise year on year.
Earnings Whispers
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Abbott has an Earnings ESP of -0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x trades significantly cheaper than the S&P 500 Index’s 19.36x.
NanoString Technologies, Inc. has an Earnings ESP of +15.62% and a Zacks Rank of 2.
NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected at 41.83%.
Meridian Bioscience has an Earnings ESP of +26.32% and a Zacks Rank of 2.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected to be 6.2%.
Image: Bigstock
What's in Store for Abbott Laboratories (ABT) in Q1 Earnings?
Abbott Laboratories (ABT - Free Report) is slated to report first-quarter 2022 results on Apr 20, before market open.
In the last-reported quarter, the company delivered an earnings surprise of 11.86%. Over the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on three occasions and missed on one, the average beat being 19.78%.
Let's see how things have shaped up prior to this announcement.
Factors at Play
Going by the pandemic scenario, the demand for testing is expected to have remained strong in Q1 2022. In the fourth quarter of 2021, COVID testing sales were $2.3 billion with rapid testing platforms, including BinaxNOW in the United States, Panbio internationally, and ID NOW globally compromising approximately 90% of the sales.
In the months of the first quarter, a significant rise in the number of COVID-19 cases in the United States and other major developed countries with the emergence of the new COVID variants are expected to have accelerated COVID-19 testing globally, giving a boost to Abbott’s Diagnostics business revenues.
Excluding COVID testing sales, worldwide Diagnostic sales are expected to have demonstrated strong growth in Q1 on the continuous rollout of Alinity, Abbott’s suite of diagnostic instruments.
Abbott Laboratories Price and Consensus
Abbott Laboratories price-consensus-chart | Abbott Laboratories Quote
Within Nutrition, from the beginning of the pandemic till the last reported quarter, Abbott gained consistently in terms of adult nutrition products sales. In the first quarter too, the company is anticipated to have registered stellar U.S. and international growth in Ensure (adult complete and balanced nutrition brand) and Glucerna (diabetes nutrition brand). According to the company, the two factors that have been driving the adult nutrition growth rate are new users entering the category in this period and existing customers increasing their usage.
Within pediatric nutrition, the company is expected to have registered strong growth in the United States from growing sales of Pedialyte, the company’s oral rehydration brand, and market share gains for Similac, its market-leading infant formula brand.
Abbott’s other consumer-facing businesses, which include diabetes care and established pharmaceuticals, have been catching up, backed by new product instructions. This uptrend is likely to have majorly contributed to the company's first-quarter performance.
Within Established Pharmaceuticals Division (EPD), the company has been witnessing visible signs of a rebound, reflecting sequential improvement based on its stable business model. New product launches across key emerging markets have been majorly boosting the EPD business in recent months. The first-quarter performance is likely to have been driven by growth in regions where COVID-19 cases have been shooting up. The business is anticipated to have grown in these regions where patients are seeking branded generic medicines
Revenues are likely to have improved in the company’s Diabetes Care business, as it has been on a substantially strong growth trajectory in recent times. Abbott has been in the limelight for developments in its flagship, sensor-based continuous glucose monitoring system, widely known as the FreeStyle Libre System.
Estimates
For first-quarter 2022, the Zacks Consensus Estimate for total revenues of $11.11 billion indicates a 6.2% rise from the prior-year comparable quarter’s reported figure. The consensus mark for earnings is pegged at $1.47, suggesting an 11.4% rise year on year.
Earnings Whispers
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Abbott has an Earnings ESP of -0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Lucira Health has an Earnings ESP of +485.72% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lucira Health’s long-term earnings growth rate is estimated at 40.2%. LHDX’s current-year P/E of 3.73x trades significantly cheaper than the S&P 500 Index’s 19.36x.
NanoString Technologies, Inc. has an Earnings ESP of +15.62% and a Zacks Rank of 2.
NanoString Technologies’ 2023 earnings growth rate is estimated at 35.1%. NSTG’s revenue growth rate for 2023 is expected at 41.83%.
Meridian Bioscience has an Earnings ESP of +26.32% and a Zacks Rank of 2.
Meridian Bioscience’s long-term historical earnings growth rate is 16.3%. VIVO’s 2022 revenue growth rate is expected to be 6.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.