Core Viewpoint - The stock market presents both long-lasting and fickle buying opportunities, with stocks potentially remaining undervalued for extended periods during bear markets [1]. Group 1 - The author has been investing since September 2017 and has a focus on dividend investing since 2009 [1]. - The blog "Kody's Dividends" documents the journey towards financial independence through dividend growth investing [1]. - The author expresses gratitude for the blog's role in connecting with the Seeking Alpha community as an analyst [1].

Group 1 - The article promotes iREIT on Alpha as a source for in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs [1] - It highlights the positive feedback from users, with 438 testimonials, most rated 5 stars, indicating high satisfaction with the service [1] Group 2 - The article includes a disclosure stating that the author has a beneficial long position in DHR shares, indicating a personal investment interest [1] - It clarifies that the opinions expressed are those of the author and not influenced by any compensation from companies mentioned [1]

Core Viewpoint - Abbott Laboratories, a leading player in the healthcare sector, is facing challenges but still presents a compelling investment opportunity for long-term investors due to its diversified business model and growth potential in key segments [1][7]. Group 1: Company Overview - Abbott Laboratories is a major medical device manufacturer with a diverse portfolio that includes nutrition, established pharmaceuticals, and diagnostics, reducing reliance on any single business unit [2]. - The company has shown resilience during disruptions, such as the pandemic, by leveraging its diagnostic business when demand for medical devices declined [2][3]. Group 2: Financial Performance and Growth Opportunities - Abbott's financial results have remained consistent, supported by its innovative capabilities and expertise in the industry [3]. - The diabetes care segment, particularly the FreeStyle Libre continuous glucose monitoring (CGM) franchise, is a significant growth driver, with only 1% of the estimated half-billion adults with diabetes currently having access to CGM technology [4]. - The recent launch of over-the-counter CGM options, Libre Rio and Lingo, further expands Abbott's market reach [3][4]. Group 3: Dividend and Investment Appeal - Abbott Laboratories has a strong track record of dividend payments, with 52 consecutive payout increases and a current yield of 1.8%, making it an attractive option for income-focused investors [4]. Group 4: Risks and Competition - The company faces legal and regulatory challenges, including lawsuits related to its baby formula and recalls of FreeStyle Libre sensors, but these issues have not yet caused significant long-term harm [5][6]. - Abbott competes with DexCom in the CGM market, but its unit has continued to thrive despite this competition [6].

Core Insights - Abbott Laboratories reported third-quarter earnings that exceeded analyst expectations, leading to a 1.5% increase in its stock price, outperforming the S&P 500 index's 0.5% gain [1] Financial Performance - Abbott's revenue for the quarter was approximately $10.64 billion, reflecting a year-over-year growth of nearly 5% [2] - Non-GAAP adjusted net income rose by 6% to $2.12 billion, equating to $1.21 per share, slightly above the consensus estimates of $10.56 billion in revenue and $1.20 per share [2] - The medical devices segment was the primary driver of growth, generating nearly $4.75 billion, a 14% increase compared to the previous year [2] - The nutrition segment also performed well, with a 10% increase to almost $2.1 billion [2] Management Guidance - CEO Robert Ford expressed confidence in the company's performance, indicating that Abbott is well-positioned to achieve the upper end of its initial guidance for the year [3] - The company raised its adjusted earnings guidance for full-year 2024 to a range of $4.64 to $4.70 per share, anticipating revenue growth of 9.5% to 10% over 2023 results [3]

Core Insights - Abbott Laboratories reported third-quarter 2024 adjusted earnings per share (EPS) of $1.21, exceeding the Zacks Consensus Estimate by 0.8% and improving 6.1% year over year [1] - The company achieved worldwide sales of $10.64 billion, a 4.9% increase year over year, surpassing the Zacks Consensus Estimate by 0.7% [2] - Abbott's gross profit rose 7.2% year over year to $5.93 billion, with a gross margin expansion of 123 basis points to 55.8% [6] Financial Performance - Adjusted operating profit increased by 8.7% year over year to $2.33 billion, with an adjusted operating margin expanding 77 basis points to 21.9% [6] - GAAP EPS was reported at 94 cents, reflecting a 14.6% year-over-year increase [1] Segment Performance - Established Pharmaceuticals segment sales increased 2.7% on a reported basis to $1.41 billion, with organic sales growth of 7% [3] - Medical Devices segment sales rose 11.7% year over year to $4.75 billion, driven by strong performance in Diabetes Care and Structural Heart [3][4] - Nutrition sales decreased 0.3% year over year to $2.07 billion, although organic sales improved by 3.4% [4] - Diagnostics sales fell 1.5% year over year to $2.41 billion, with core laboratory diagnostics showing a 4.3% organic growth [5] Guidance and Outlook - Abbott updated its 2024 guidance, expecting adjusted earnings in the range of $4.64-$4.74 per share, up from the previous range of $4.61-$4.71 [7] - The company anticipates full-year organic sales growth of 9.5-10%, an increase from the earlier estimate of 8.5-10% [7] Strategic Developments - Abbott formed a global partnership with Medtronic to integrate its continuous glucose monitoring system with Medtronic's insulin delivery devices [8] - The company launched Lingo, the first continuous glucose monitoring system available without a prescription in the U.S., and completed enrollment in its VOLT-AF IDE trial ahead of schedule [9]

Financial Data and Key Metrics - Organic sales growth of more than 8% excluding COVID testing sales, with adjusted earnings per share of $1.21 [8] - Sales increased 7.6% on an organic basis and 8.2% excluding COVID testing sales, with foreign exchange having an unfavorable impact of 2.5% [17] - Adjusted gross margin ratio was 56.3%, adjusted R&D was 6.5% of sales, and adjusted SG&A was 27.2% of sales [17] - Adjusted tax rate for the quarter was 15% [17] - Forecasted adjusted earnings per share guidance for Q4 is $1.31 to $1.37, with exchange expected to have an unfavorable impact of less than 1% on reported sales [18] Business Line Performance Nutrition - Sales increased 3.5%, driven by double-digit growth in the U.S., including 12% growth in U.S. Pediatric Nutrition and 11.5% growth in U.S. Adult Nutrition [9] - International pediatric business faced challenges due to commercial execution issues, but corrective actions were taken [22][23] Diagnostics - Core Laboratory Diagnostics sales increased 4.5% excluding COVID testing sales, driven by global demand for routine diagnostic testing [9] - Rapid and point-of-care diagnostics businesses expanded test menus, particularly for respiratory tests [10] - Core Lab business in China was impacted by VBP implementation, but international Core Lab business excluding China grew double digits [24][25] Established Pharmaceutical Products (EPE) - Sales increased 7%, with double-digit growth in Latin America, Southeast Asia, and the Middle East [11] - Strong growth in gastroenterology, cardiometabolic, central nervous system, and pain management therapeutic areas [11] - Biosimilars portfolio is advancing, with the first biosimilar expected to launch in emerging markets in late 2025 [11] Medical Devices - Sales grew more than 13%, with Diabetes Care sales of continuous glucose monitors exceeding $1.6 billion, up 21% [12] - Electrophysiology growth of 14% was driven by double-digit growth in the U.S. and international markets [13] - Structural Heart growth of more than 16% was driven by market-leading products like TAVR, Amulet, and TriClip [14][15] - Heart Failure growth of 14% was driven by heart assist devices, and Vascular growth of 5% was led by vessel closure and coronary imaging [15] - Neuromodulation sales grew 5%, driven by strong demand in international markets [15] Market Performance - U.S. market showed strong performance in Nutrition and Diabetes Care, with 26% growth in Libre sales [28][70] - International markets, particularly in Latin America, Southeast Asia, and the Middle East, contributed to EPE growth [11] - China's Core Lab business was impacted by VBP implementation, but other international markets performed well [24] Strategic Direction and Industry Competition - The company entered new strategic partnerships, launched new products, and made advancements in its R&D pipeline [8] - In Diabetes Care, partnerships with Medtronic and other companies aim to connect FreeStyle Libre CGM with automated insulin delivery systems [12] - The company is focusing on expanding its gross margin profile, aiming for a 75 basis point improvement for the full year [16] - The company is well-positioned for strong growth in 2025, with a focus on high-growth markets like TAVR, LAA, and new diagnostic systems [37][38] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's diversified portfolio, which allows for strong performance even if some business units underperform [21] - The company expects double-digit EPS growth in Q4 as COVID-related comparisons diminish [22] - Management remains bullish on the CGM market, with a goal of $10 billion in sales by 2028 and a focus on technology, scale, and cost leadership [28][29] - The company is optimistic about structural heart markets, with no concerns about capacity constraints in the U.S. [50][51] Other Important Information - The company announced a new $7 billion share repurchase program, reflecting confidence in its financial performance and outlook [46][47] - The company is investing in R&D and SG&A to support growth in high-potential areas like med tech and diagnostics [43][44] - The company is focused on resolving legal challenges related to infant formula and NEC, with a strong stance on the regulatory process and scientific evidence [55][56][61] Q&A Session Summary Travis Steed (BofA Securities) - Asked about underperformance in Nutrition and Diagnostics and confidence in Q4 guidance [20] - Management attributed underperformance to one-time challenges and expressed confidence in Q4 growth, driven by strong device performance [21][22][23][24][25] Larry Biegelsen (Wells Fargo) - Asked about the state of the CGM market and the outlook for Libre and Lingo [27] - Management remains bullish on the CGM market, with strong growth in Libre and positive early feedback on Lingo [28][29][30][31][32] Robbie Marcus (JPMorgan) - Asked about the outlook for 2025 and top-line growth expectations [34] - Management sees high single-digit growth and 10% EPS growth as reasonable starting points for 2025, with strong momentum in key markets [35][36][37][38][39] David Roman (Goldman Sachs) - Asked about investment spending and the trajectory of operating expenses [42] - Management highlighted disciplined investment in R&D and SG&A, with a focus on high-growth areas and gross margin expansion [43][44][45][46][47] Joshua Jennings (TD Cowen) - Asked about capacity constraints in structural heart markets [49] - Management sees no bottlenecks and expects continued growth in structural heart, supported by investments in R&D and field presence [50][51][52][53] Vijay Kumar (Evercore ISI) - Asked about the impact of the FDA, CDC, and NIH joint statement on NEC lawsuits [55] - Management views the statement as supportive of their position and is focused on resolving legal challenges quickly [56][57][58][59][60][61][62] Joanne Wuensch (Citi) - Asked about the state of the electrophysiology market and PFA uptake [64] - Management sees strong growth in procedures and is leveraging its open mapping system to support growth in PFA and RF ablation [65][66][67] Matt Miksic (Barclays) - Asked about Libre share trends, Rio timing, and gross margin expansion [69] - Management highlighted strong execution in the U.S., with plans to scale Libre and expand gross margins through manufacturing efficiencies [70][71][72][73][74] Danielle Antalffy (UBS) - Asked about sustainable growth in structural heart markets, particularly LAA closure and tricuspid [76] - Management is optimistic about growth in structural heart, with strong performance in Amulet and TriClip, and expects more clinical data to support adoption [77][78][79][80][81]

Core Insights - Abbott Laboratories reported third-quarter earnings that exceeded profit and sales estimates, driven by strong demand for its medical devices [1][2] - The company raised the midpoint of its full-year earnings forecast, indicating positive momentum heading into the next year [1] - Third-quarter earnings per share (EPS) were 94 cents, with revenue increasing by 4.9% year-over-year to $10.64 billion, surpassing analysts' expectations [1] Medical Devices Sales - Sales of medical devices surged by 11.7% in the third quarter, with notable growth in diabetes care, structural heart, heart failure, and electrophysiology products [2] - Established pharmaceuticals sales saw a slight increase, while diagnostics and nutrition unit sales experienced a minor decline [2] - Abbott's shares rose nearly 2% following the announcement, reflecting a 7% increase since the beginning of the year [2]

Economic Indicators - Import Prices for September decreased by 0.4%, which is 10 basis points below expectations and the lowest since December 2023 [2] - Ex-fuel costs for import pricing showed a core figure of +0.2%, matching May's figure but lower than the near-term high of +0.6% in April [2] - Exports fell by 0.7%, below the consensus estimate of -0.5%, marking the second consecutive month of decline and the fourth negative print in the last five months [2] Q3 Earnings Reports - Abbott Labs (ABT) reported Q3 earnings of $1.21 per share, beating expectations by one cent, with revenues of $10.6 billion driven by a 13% growth in Devices [3] - Morgan Stanley (MS) posted a strong Q3 performance with earnings of $1.88 per share, a 20% increase from the previous year, and revenues of $15.38 billion, exceeding estimates [3] - U.S. Bancorp (USB) reported earnings of $1.03 per share, beating the Zacks consensus by three cents, but revenues of $6.83 billion fell short of the expected $6.88 billion [4] Market Outlook - Pre-market futures showed slight increases with the Dow up by 22 points, S&P 500 up by 1 point, and Nasdaq up by 5 points, following all-time closing highs for the Dow and S&P on Monday [1] - No additional monthly reports are expected for the remainder of the day, and the next Fed meeting is anticipated to result in a 25 basis points cut to the Fed funds rate [5]

Core Insights - The article discusses the investment potential of Abbott Laboratories (ABT), highlighting its strong market position and growth prospects in the healthcare sector [1]. Financial Performance - Abbott reported a revenue increase of 10% year-over-year, reaching $10 billion in the last quarter [1]. - The company's earnings per share (EPS) grew by 15%, indicating robust profitability [1]. Market Position - Abbott holds a significant share in the medical devices market, particularly in diabetes care and cardiovascular products [1]. - The company is well-positioned to benefit from the aging population and increasing healthcare demands globally [1]. Growth Opportunities - Abbott is expanding its product portfolio, focusing on innovative solutions in diagnostics and nutrition [1]. - The company is investing heavily in research and development, with a budget allocation of $1.5 billion for the upcoming fiscal year [1]. Risks and Challenges - Potential regulatory changes and competition in the healthcare sector could impact Abbott's market share [1]. - Supply chain disruptions may pose challenges to the company's operational efficiency [1].

Core Insights - Abbott reported revenue of $10.64 billion for the quarter ended September 2024, reflecting a year-over-year increase of 4.9% and an EPS of $1.21, up from $1.14 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $10.56 billion by 0.71%, while the EPS also surpassed the consensus estimate of $1.20 by 0.83% [1] Financial Performance Metrics - **Nutrition - U.S.**: Net sales of $950 million, exceeding the average estimate of $918.13 million, with a year-over-year increase of 10.5% [2] - **Nutrition - International**: Net sales of $1.12 billion, below the average estimate of $1.26 billion, representing a year-over-year decline of 8% [2] - **Diagnostics - International**: Net sales of $1.38 billion, slightly below the average estimate of $1.39 billion, with a year-over-year decrease of 3.9% [2] - **Diagnostics - U.S.**: Net sales of $1.03 billion, surpassing the average estimate of $919.77 million, reflecting a year-over-year increase of 1.9% [2] - **Diagnostics Total**: Net sales of $2.41 billion, exceeding the average estimate of $2.31 billion, with a year-over-year decline of 1.5% [2] - **Medical Devices - Diabetes Care**: Net sales of $1.73 billion, slightly above the average estimate of $1.72 billion, with a year-over-year increase of 17.2% [2] - **Nutrition Total**: Net sales of $2.07 billion, below the average estimate of $2.17 billion, representing a year-over-year decline of 0.3% [2] - **Medical Devices - Rhythm Management**: Net sales of $597 million, slightly above the average estimate of $595.52 million, with a year-over-year increase of 6% [2] - **Medical Devices Total**: Net sales of $4.75 billion, exceeding the average estimate of $4.70 billion, with a year-over-year increase of 11.7% [2] - **Medical Devices - Neuromodulation**: Net sales of $236 million, below the average estimate of $242.90 million, with a year-over-year increase of 4% [2] - **Established Pharmaceuticals**: Net sales of $1.41 billion, matching the average estimate, with a year-over-year increase of 2.8% [2] - **Medical Devices - Vascular**: Net sales of $699 million, slightly above the average estimate of $695.35 million, with a year-over-year increase of 4% [2] Stock Performance - Abbott's shares have returned -1.8% over the past month, while the Zacks S&P 500 composite has increased by 3.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]