© Reuters
Abbott has raised its earnings outlook for the full year 2023 to between $4.42 and $4.46 per share, up from the previous range of $4.30 and $4.40, after reporting Q3 revenues of $10.1 billion and adjusted earnings of $1.14 per share. These figures surpassed street estimates despite marking a 2.6% year-on-year decline.
The company’s Q3 revenue was characterized by a rise in sales across multiple segments, including Medical Devices (17%), Nutrition (16%), and Established Pharmaceuticals (3%). However, the Diagnostics segment experienced a significant fall in revenues (33%) due to lower demand for COVID-19 testing. This was offset partially by a 10.1% rise in revenues excluding COVID-19 tests.
Despite lower revenues and a contraction in the adjusted operating income margin to 22.9%, Abbott reported only a 1% decline in the bottom line to $1.14 on a per-share and adjusted basis in Q3’23. This was attributed to lower taxes and a 1% decline in total shares outstanding.
Lastly, Abbott does not perceive GLP-1 drugs as a threat to their FreeStyle range of CGM devices, contrasting with the Trefis High Quality (HQ) Portfolio which has consistently outperformed the , providing better returns with less risk.
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