Core Insights - Abbott reported $10.97 billion in revenue for Q4 2024, a year-over-year increase of 7.2%, with EPS of $1.34 compared to $1.19 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $11.02 billion by 0.45%, while the EPS met the consensus estimate [1] Financial Performance Metrics - U.S. Diagnostics net sales were $1.06 billion, exceeding the average estimate of $1.03 billion, reflecting a 3.4% year-over-year increase [4] - International Diagnostics net sales were $1.47 billion, below the average estimate of $1.54 billion, showing a year-over-year decline of 3.2% [4] - International Nutrition net sales reached $1.20 billion, slightly below the average estimate of $1.21 billion, with a year-over-year increase of 2% [4] - U.S. Nutrition net sales were $928 million, compared to the average estimate of $942.92 million, marking a 7.9% year-over-year increase [4] - Medical Devices - Rhythm Management total net sales were $624 million, slightly above the average estimate of $623.50 million, with a year-over-year increase of 7.2% [4] - Medical Devices - Diabetes Care net sales were $1.86 billion, exceeding the average estimate of $1.82 billion, reflecting a significant year-over-year increase of 20% [4] - Established Pharmaceuticals net sales were $1.27 billion, below the average estimate of $1.31 billion, with a year-over-year increase of 3.8% [4] - Total Diagnostics net sales were $2.52 billion, slightly below the average estimate of $2.57 billion, showing a year-over-year decline of 0.6% [4] - Total Nutrition net sales were $2.13 billion, below the average estimate of $2.16 billion, with a year-over-year increase of 4.5% [4] - Medical Devices - Vascular total net sales were $725 million, exceeding the average estimate of $714.22 million, with a year-over-year increase of 7.1% [4] - Medical Devices - Neuromodulation total net sales were $257 million, slightly above the average estimate of $253.01 million, reflecting a year-over-year increase of 7.1% [4] - Medical Devices - Structural Heart total net sales were $609 million, exceeding the average estimate of $587.72 million, with a year-over-year increase of 22.3% [4] Stock Performance - Abbott's shares returned +1.8% over the past month, compared to the Zacks S&P 500 composite's +2.1% change, with a Zacks Rank 2 (Buy) indicating potential outperformance in the near term [3]

Core Viewpoint - Abbott reported quarterly earnings of $1.34 per share, matching the Zacks Consensus Estimate, and showing an increase from $1.19 per share a year ago [1] - The company posted revenues of $10.97 billion for the quarter, slightly missing the consensus estimate by 0.45%, but up from $10.24 billion year-over-year [2] Financial Performance - Over the last four quarters, Abbott has surpassed consensus EPS estimates three times and topped revenue estimates three times as well [2] - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $10.64 billion, and for the current fiscal year, it is $5.14 on revenues of $44.94 billion [7] Stock Performance and Outlook - Abbott shares have increased by approximately 3.3% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for outperformance in the near future [6] Industry Context - The Medical - Products industry, to which Abbott belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Sales Performance - Fourth-quarter sales of $11.0 billion, with reported sales increasing 7.2% and organic sales growth of 10.1% excluding COVID-19 testing-related sales[3] - Full-year 2024 sales of $42.0 billion, with reported sales increasing 4.6% and organic sales growth of 9.6% excluding COVID-19 testing-related sales[3] - Worldwide Nutrition sales increased 4.5% on a reported basis and 7.1% on an organic basis in the fourth quarter[9] - Global Diagnostics sales increased 4.3% on a reported basis and 6.1% on an organic basis excluding COVID-19 testing-related sales[12] - Established Pharmaceuticals sales increased 3.8% on a reported basis and 8.5% on an organic basis in Q4 2024, with international sales reaching $1,268 million[17] - Key Emerging Markets sales grew 3.3% on a reported basis and 8.8% on an organic basis in Q4 2024, driven by growth in gastroenterology, women's health, and central nervous system/pain management[18] - Full-year 2024 Established Pharmaceuticals sales totaled $5,194 million, with organic growth of 9.2%[19] - Medical Devices sales increased 13.7% on a reported basis and 14.0% on an organic basis in Q4 2024, reaching $5,052 million[21] - Diabetes Care sales grew 22.7% on a reported basis and 22.8% on an organic basis in Q4 2024, with continuous glucose monitors contributing $1.8 billion[21] - Full-year 2024 Medical Devices sales were $19 billion, an increase of over $2 billion compared to the previous year[22] - Total worldwide sales in Q4 2024 were $10.974 billion, with COVID-19 testing-related sales at $176 million[33] - Full-year 2024 total worldwide sales were $41.950 billion, with COVID-19 testing-related sales at $747 million[33] - Net Sales for 4Q24 increased by 7.2% to $10.974 billion compared to $10.241 billion in 4Q23[35] - Total Company revenue for 4Q24 was $10.974 billion, a 7.2% increase compared to 4Q23[54] - U.S. revenue for 4Q24 was $4.341 billion, up 10.0% compared to 4Q23[54] - International revenue for 4Q24 was $6.633 billion, a 5.4% increase compared to 4Q23[54] - Total Nutrition revenue for 4Q24 was $2.129 billion, up 4.5% compared to 4Q23[54] - Adult Nutrition revenue for 4Q24 was $1.129 billion, a 7.4% increase compared to 4Q23[54] - Total Medical Devices revenue for 4Q24 was $5.052 billion, up 13.7% compared to 4Q23[54] - Total Company revenue for 12M24 was $41.950 billion, a 4.6% increase compared to 12M23[54] - Total Medical Devices revenue for 12M24 was $18.986 billion, up 12.4% compared to 12M23[54] Earnings and Profitability - Full-year 2024 GAAP diluted EPS of $7.64 and adjusted diluted EPS of $4.67[3] - Abbott projects full-year 2025 adjusted diluted EPS of $5.05 to $5.25, reflecting double-digit growth at the midpoint[3] - Operating Earnings for 4Q24 rose by 7.4% to $1.911 billion from $1.780 billion in 4Q23[35] - Net Earnings for 4Q24 surged to $9.229 billion, significantly impacted by a $7.497 billion non-cash valuation allowance adjustment[35][37] - Diluted Earnings per Common Share for 4Q24 was $5.27, up from $0.91 in 4Q23, largely due to the same valuation allowance adjustment[35][37] - Operating Earnings for 12M24 increased by 5.4% to $6.825 billion from $6.478 billion in 12M23[39] - Net Earnings for 12M24 jumped to $13.402 billion, influenced by a $7.497 billion non-cash valuation allowance adjustment[39][41] - Diluted Earnings per Common Share for 12M24 was $7.64, up from $3.26 in 12M23, primarily due to the valuation allowance adjustment[39][41] - Abbott projects full-year 2025 adjusted operating margin to be 23.5% to 24.0% of sales, reflecting an increase of 150 basis points at the midpoint compared to 2024[3] Research and Development - Abbott announced more than 15 new growth opportunities from its R&D pipeline in 2024, including new product approvals and treatment indications[3] - R&D expenses for 4Q24 increased by 7.0% to $749 million compared to $700 million in 4Q23[35] Expenses and Costs - SG&A expenses for 4Q24 rose by 6.7% to $2.907 billion from $2.724 billion in 4Q23[35] - Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs[68] - Restructuring and cost reduction initiative expenses include severance and outplacement costs[68] - Other expenses include costs to comply with MDR and IVDR regulations and charges for intangible asset impairments[68] - Net tax benefit associated with specified items is reflected[68] COVID-19 Testing Sales - Worldwide COVID-19 testing sales were $176 million in the fourth quarter of 2024 compared to $288 million in the fourth quarter of the prior year[12] - Total worldwide sales in Q4 2024 were $10.974 billion, with COVID-19 testing-related sales at $176 million[33] - Full-year 2024 total worldwide sales were $41.950 billion, with COVID-19 testing-related sales at $747 million[33] Dividend and Shareholder Returns - Abbott declared a quarterly dividend of $0.59 per share, marking its 404th consecutive quarterly dividend[26] Product Line Discontinuation - The company discontinued the ZonePerfect® product line in the Nutrition business, impacting revenue by $1 billion in 4Q24 and $14 billion in 12M24[55] Acquisitions and Organic Growth - The acquisition of CSI on April 27, 2023, impacted organic sales growth calculations for January through April 2024[54] - Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%[3] - Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%[24]

Core Insights - Abbott reported strong financial results for the fourth quarter of 2024, achieving the highest sales and earnings per share growth of the year, with a total sales of $10.974 billion, representing a 7.2% increase compared to the fourth quarter of 2023 [2][6][29] - The company achieved organic sales growth of 10.1% in the fourth quarter when excluding COVID-19 testing-related sales, indicating robust underlying business performance [6][12] - For the full year 2024, Abbott's total sales reached $41.950 billion, a 4.6% increase from 2023, with organic sales growth of 9.6% when excluding COVID-19 testing [6][29] Fourth-Quarter Business Overview - U.S. sales for the fourth quarter were $4.341 billion, up 10.0%, while international sales were $6.633 billion, up 5.4% [4][6] - The Nutrition segment reported sales of $2.129 billion, with U.S. sales increasing by 8.0% and international sales by 2.0% [4][8] - Diagnostics sales totaled $2.520 billion, with a reported decline of 0.6% year-over-year, primarily due to reduced demand for COVID-19 tests [12][13] - Medical Devices sales increased by 13.7% to $5.052 billion, driven by strong performance in various product lines [20][21] Full-Year Results - For the full year 2024, Abbott's gross margin improved by 60 basis points on a GAAP basis compared to 2023, reflecting operational efficiency [6][35] - The company achieved a GAAP diluted EPS of $7.64 and an adjusted diluted EPS of $4.67 for the full year [6][35] - Abbott's R&D pipeline yielded over 15 new growth opportunities in 2024, contributing to future growth prospects [6][23] Guidance for 2025 - Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5% and an adjusted operating margin of 23.5% to 24.0% of sales [6][23] - The company anticipates adjusted diluted EPS for 2025 to be between $5.05 and $5.25, indicating expected double-digit growth [6][23] Dividend Declaration - Abbott declared a quarterly dividend of $0.59 per share, marking the 404th consecutive quarterly dividend, and has increased its dividend payout for 53 consecutive years [25]

Core Viewpoint - Abbott Laboratories is expected to report its fourth-quarter fiscal 2024 results on January 22, with projected non-GAAP earnings between $1.31 and $1.37 per share, reflecting a 12.6% growth from the previous year [1][2]. Earnings Estimates - The Zacks Consensus Estimate for Abbott's earnings has remained steady at $1.34 per share over the past 90 days [2]. - The consensus mark for revenues is pegged at $11.02 billion, suggesting a 7.6% growth from the year-ago quarter [4]. Segment Performance Diagnostics - The Diagnostics segment is expected to benefit from high testing demand and the adoption of top-tier systems, with a projected revenue increase of 1.4% year over year [4][6]. - However, a decline in COVID-19 testing revenues is anticipated, continuing a trend from previous quarters [5]. Established Pharmaceuticals (EPD) - Abbott's EPD business is likely to show strong performance driven by a broad product portfolio and favorable demographic trends, with a projected revenue increase of 6.9% year over year [7][9]. - The company has identified biosimilars as a strategic growth area, contributing positively to the fourth-quarter results [8]. Medical Devices - The Medical Devices segment is expected to report an 11.8% year-over-year revenue increase, driven by the Diabetes Care division and new product launches [10][13]. - Key products include the Freestyle Libre sensing technology and the recently launched tricuspid repair device, TriClip [11][12]. Nutrition - The Nutrition division is anticipated to see a 5.8% revenue improvement, with strong sales in pediatric nutrition and market share gains in the infant formula business [13][14]. Stock Performance - Abbott's shares have outperformed the broader industry, declining only 0.4% compared to a 4.1% decline in the industry during the fourth quarter [15]. - The stock has also outperformed the Medical sector's 12.2% decline, while the S&P 500 rose 3.7% in the same period [15]. Valuation - Abbott's stock is considered to have a stretched valuation, with a forward 12-month Price/Earnings ratio of 21.95X, higher than the sector's 21.42X [19]. - Compared to peers, MDT trades at 15.33X and BSX at 35.35X [19]. Investment Rationale - Abbott's diversified business model and strong market position contribute to its consistent performance and growth prospects, making it a compelling stock for investment [20]. - The company's financial strength, characterized by strong cash flow and conservative leverage, enhances its ability to invest in growth opportunities [21].

Core Viewpoint - Analysts project Abbott (ABT) will report quarterly earnings of $1.34 per share, a 12.6% increase year over year, with revenues expected to reach $11.02 billion, reflecting a 7.6% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1][2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [2] Key Metrics Projections - Analysts estimate 'Net sales- Medical Devices- Rhythm Management- Total' at $623.50 million, a 7.1% year-over-year increase [4] - 'Net sales- Medical Devices- Diabetes Care' is projected to reach $1.82 billion, indicating a 17.3% increase from the prior-year quarter [4] - 'Net sales- Established Pharmaceuticals' is expected to be $1.31 billion, reflecting a 6.9% increase year over year [5] - 'Net sales- Diagnostics' is estimated at $2.57 billion, a 1.4% increase from the prior-year quarter [5] - 'Net sales- Diagnostics- U.S.' is projected to be $1.03 billion, indicating a 0.9% increase year over year [5] - 'Net sales- Diagnostics- International' is forecasted to reach $1.54 billion, a 1.7% increase from the prior-year quarter [6] - 'Net sales- Nutrition- International' is expected to be $1.21 billion, reflecting a 3.1% year-over-year change [6] - 'Net sales- Nutrition- U.S.' is projected at $942.92 million, indicating a 9.6% increase from the prior-year quarter [6] - 'Net sales- Medical Devices- Neuromodulation- International' is estimated at $50.56 million, a 17.6% increase year over year [7] - 'Net sales- Medical Devices- Rhythm Management- U.S.' is projected to be $303.63 million, reflecting a 6.5% increase [7] - 'Net sales- Medical Devices- Rhythm Management- International' is expected to reach $318.99 million, indicating a 7.4% increase from the prior-year quarter [8] - 'Net sales- Medical Devices- Structural Heart- U.S.' is projected at $279.89 million, reflecting a significant 21.2% increase year over year [8] Stock Performance - Abbott shares have shown a return of -0.7% over the past month, compared to the Zacks S&P 500 composite's -3.3% change, indicating relative outperformance [8]

Core Viewpoint - Abbott Laboratories (ABT) shares are currently trading at a discount compared to the Zacks Medical Products industry, presenting a potential buying opportunity for value investors [1][2]. Valuation and Market Position - Abbott's trailing 12-month price-to-book (P/B) value is 4.91X, significantly lower than the industry average of 7.64X and the benchmark's average of 8.77 [1]. - The stock is attractively valued compared to peers such as Boston Scientific (P/B of 6.47X) and Stryker (P/B of 6.72X) [1]. - The company has a market capitalization of $196 billion, indicating its substantial size within the MedTech sector [4]. Performance Metrics - Over the past six months, Abbott's shares improved by 11.6%, outperforming the broader industry, which saw a mere 9.1% improvement, and the Medical sector, which declined by 9.3% [5]. - The S&P 500 index improved by 7.4% during the same period [5]. - Abbott's trailing 12-month return on equity (ROE) stands at 20.18%, surpassing the industry average of 16.62%, highlighting efficient management and strong returns for shareholders [13]. Strategic Developments - Abbott is gaining a prominent position in global point-of-care testing, focusing on areas such as Infectious Disease and Consumer Diagnostics [8]. - The company is advancing in biosimilars within its Established Pharmaceuticals Division, with plans for commercialization in oncology and women's health set for 2025 [9]. - In Diabetes Care, Abbott's continuous glucose monitoring (CGM) system, FreeStyle Libre, generated over $1.6 billion in sales, growing 21% in the third quarter of 2024 [10]. Recent Agreements and Future Outlook - Abbott has settled all pending lawsuits with Dexcom, allowing the company to focus on advancing its Diabetes Care business without the burden of litigation expenses [11][12]. - The company's diversified business model and strong market position contribute to its consistent performance and growth prospects, making it a compelling buy [15]. - Abbott's financial strength, characterized by strong cash flow and conservative leverage, enhances its ability to invest in growth opportunities [17].

Core Insights - Michael Dion is an expert in FP&A, Corporate Finance, and Small Business with 12 years of experience in Fortune 100 companies and various industries [1] - He founded F9 Finance to assist finance professionals and small business owners in understanding finance and accounting concepts [1] - Dion's investment strategy focuses on identifying value opportunities where market reactions to news are disproportionate, emphasizing strong fundamentals and dividends [1] Industry and Company Analysis - The finance experience of Dion spans multiple sectors including Telecom, Media and Entertainment, Hospitality, and Construction [1] - The approach to investment prioritizes cash flow as a critical factor for both companies and investors [1]

Company Overview - Abbott's stock closed at $113.04, reflecting a -0.69% change from the previous day's closing price, underperforming the S&P 500's gain of 0.55% [1] - The company is set to announce its earnings on January 22, 2025, with an expected EPS of $1.34, representing a 12.61% increase from the same quarter last year [2] - Revenue is forecasted to reach $11.02 billion, indicating a 7.64% increase compared to the same quarter last year [2] Analyst Estimates - Recent modifications to analyst estimates for Abbott are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Rank system, which evaluates estimate changes, currently ranks Abbott as 2 (Buy), suggesting a favorable outlook [5] Valuation Metrics - Abbott has a Forward P/E ratio of 22.15, which is higher than the industry average of 18.88, indicating a premium valuation [6] - The company's PEG ratio stands at 2.43, compared to the industry average PEG ratio of 2.19, reflecting its expected earnings growth trajectory [6] Industry Context - Abbott operates within the Medical - Products industry, which has a Zacks Industry Rank of 90, placing it in the top 36% of over 250 industries [7] - The top 50% rated industries, as per Zacks Rank, tend to outperform the bottom half by a factor of 2 to 1, indicating a strong competitive position for Abbott within its industry [7]

Group 1 - Abbott (ABT) is a notable stock in the Medical sector, currently outperforming the sector with a year-to-date return of approximately 0.3%, while the average Medical stocks have lost 4.8% [4] - Abbott holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 0.2% over the past 90 days [3] - The Medical sector consists of 1011 companies and Abbott is part of the Medical - Products industry, which includes 82 companies and is currently ranked 87 in the Zacks Industry Rank [2][5] Group 2 - Acurx Pharmaceuticals, Inc. (ACXP) has also outperformed the Medical sector with a year-to-date return of 3.2% and holds a Zacks Rank of 2 (Buy) [4][5] - The consensus EPS estimate for Acurx has increased by 8% over the past three months, indicating positive analyst sentiment [5] - The Medical - Biomedical and Genetics industry, to which Acurx belongs, has seen a decline of 13.1% this year, ranking 66 among 513 stocks [6]