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What's in Store for Abbott Laboratories (ABT) in Q3 Earnings?
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Abbott Laboratories (ABT - Free Report) is slated to report third-quarter 2022 results on Oct 19, before market open.
In the last reported quarter, the company delivered an earnings surprise of 31.19%. Over the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on all the occasions, the average beat being 28.23%.
Let's see how things have shaped up prior to this announcement.
Factors at Play
The ongoing inflationary pressure, a strengthening U.S. dollar and supply chain issues are expected to have adversely impacted Abbott’s overall third-quarter performance. Going by the industry-wide trend so far, logistical challenges and increasing unit cost might have weighed on corporate profitability of the company. Not just this, the existing healthcare staffing challenges and diminishing demand for COVID-testing products may also have weighed on the company through the Q3 months. The lockdown issues in limited geographies, including China where the company has extensive base, are expected to have also impacted the business during the third quarter.
On a positive note, in the months of the third quarter, a significant rise in the number of monkeypox cases in the United States and other major developed as well as emerging economies are expected to have accelerated testing volume globally, giving a boost to Abbott’s Diagnostics business revenues. According to the company, with the emergence of new viruses that escape immunity, rapid tests have become the best tool to help slow and prevent transmission.
Worldwide Diagnostic sales are expected to have demonstrated growth in Q3 on the continuous rollout of Alinity, Abbott’s suite of diagnostic instruments as well as expanding menus across the company’s testing platforms.
Within Nutrition, total worldwide Nutrition and Pediatric Nutrition sales are expected to have declined in Q3, thanks to a voluntary recall and manufacturing shutdown of certain infant formula products manufactured at one of Abbott's U.S. plants since last February. These include the company’s market-leading Similac and Elecare. Though the company announced an update on the resumption of partial production at the facility, starting with the specialty formula EleCare and metabolic formulas, business recovery might take some more time. Also, per the last update, the company is yet to restart Similac production. All these are expected to have caused a year-over-year dip in the pediatric nutrition business.
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 third-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 third-quarter performance is likely to have been driven by growing customer demand for core therapeutic lines, including cardiometabolic, respiratory and central nervous system/pain management.
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 third-quarter 2022, the Zacks Consensus Estimate for total revenues of $9.59 billion indicates a 12.2% dip from the prior-year comparable quarter’s reported figure. The consensus mark for earnings is pegged at 89 cents, suggesting a 36.4% decline 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 a higher chance of beating estimates. However, that is not the case here as you can see:
Earnings ESP: Abbott has an Earnings ESP of -2.52%. 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.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #2. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Image: Bigstock
What's in Store for Abbott Laboratories (ABT) in Q3 Earnings?
Abbott Laboratories (ABT - Free Report) is slated to report third-quarter 2022 results on Oct 19, before market open.
In the last reported quarter, the company delivered an earnings surprise of 31.19%. Over the trailing four quarters, its earnings exceeded the Zacks Consensus Estimate on all the occasions, the average beat being 28.23%.
Let's see how things have shaped up prior to this announcement.
Factors at Play
The ongoing inflationary pressure, a strengthening U.S. dollar and supply chain issues are expected to have adversely impacted Abbott’s overall third-quarter performance. Going by the industry-wide trend so far, logistical challenges and increasing unit cost might have weighed on corporate profitability of the company. Not just this, the existing healthcare staffing challenges and diminishing demand for COVID-testing products may also have weighed on the company through the Q3 months. The lockdown issues in limited geographies, including China where the company has extensive base, are expected to have also impacted the business during the third quarter.
On a positive note, in the months of the third quarter, a significant rise in the number of monkeypox cases in the United States and other major developed as well as emerging economies are expected to have accelerated testing volume globally, giving a boost to Abbott’s Diagnostics business revenues. According to the company, with the emergence of new viruses that escape immunity, rapid tests have become the best tool to help slow and prevent transmission.
Abbott Laboratories Price and EPS Surprise
Abbott Laboratories price-eps-surprise | Abbott Laboratories Quote
Worldwide Diagnostic sales are expected to have demonstrated growth in Q3 on the continuous rollout of Alinity, Abbott’s suite of diagnostic instruments as well as expanding menus across the company’s testing platforms.
Within Nutrition, total worldwide Nutrition and Pediatric Nutrition sales are expected to have declined in Q3, thanks to a voluntary recall and manufacturing shutdown of certain infant formula products manufactured at one of Abbott's U.S. plants since last February. These include the company’s market-leading Similac and Elecare. Though the company announced an update on the resumption of partial production at the facility, starting with the specialty formula EleCare and metabolic formulas, business recovery might take some more time. Also, per the last update, the company is yet to restart Similac production. All these are expected to have caused a year-over-year dip in the pediatric nutrition business.
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 third-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 third-quarter performance is likely to have been driven by growing customer demand for core therapeutic lines, including cardiometabolic, respiratory and central nervous system/pain management.
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 third-quarter 2022, the Zacks Consensus Estimate for total revenues of $9.59 billion indicates a 12.2% dip from the prior-year comparable quarter’s reported figure. The consensus mark for earnings is pegged at 89 cents, suggesting a 36.4% decline 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 a higher chance of beating estimates. However, that is not the case here as you can see:
Earnings ESP: Abbott has an Earnings ESP of -2.52%. 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.
Charles River Laboratories International (CRL - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of #3. The company will release third-quarter 2022 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson (MCK - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana (HUM - Free Report) currently has an Earnings ESP of +0.76% and a Zacks Rank of #2. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.