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]

Group 1 - Abbott reported quarterly earnings of $1.21 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and up from $1.14 per share a year ago, representing an earnings surprise of 0.83% [1] - The company achieved revenues of $10.64 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.71% and increasing from $10.14 billion year-over-year [1] - Over the last four quarters, Abbott has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [1] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, with Abbott shares having gained about 5.4% year-to-date compared to the S&P 500's 21.9% gain [2] - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $10.87 billion, and for the current fiscal year, it is $4.66 on revenues of $41.77 billion [4] - The Medical - Products industry, to which Abbott belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook for the sector [5]

Core Insights - Abbott Laboratories is recognized for its consistent market-beating returns, ranking as the 11th top-returning stock since 1937 and the top in the healthcare sector [1] - The company demonstrates steady growth and capital returns, supported by dividends and share repurchases, which contribute to reducing portfolio risk [2] Financial Performance - In Q3, Abbott reported a 4.9% growth, surpassing consensus forecasts, with organic growth at 8.2%, driven by a strong medical device segment [3] - Medical Devices segment grew by 11.7% reported and 13.3% organically, highlighting the strength in Structural Heart and Heart Failure products [3] - Established Pharmaceuticals grew by 2.7% reported and 7% organically, while Nutrition and Diagnostics faced declines [3] Margins and Earnings - Operating and net margins widened slightly year-over-year, with operating earnings up 12.8% and net operating earnings up 14.6% [4] - Adjusted fully diluted EPS reached $1.21, reflecting a 6% increase, with stable margin forecasts for Q4 [4] - Full-year earnings guidance was raised to a range centering on $4.67, slightly above the $4.66 consensus [4] Capital Returns - Abbott has a strong capital return history with a 53-year record of annual increases and a low payout ratio below 50% [5] - The company has a robust balance sheet, allowing for R&D, reinvestment, and share repurchases, with a recent $7 billion repurchase authorization [5] Analyst Sentiment - Analysts show strong support for Abbott, with a consensus rating of Moderate Buy and a price target of $125, indicating about 10% upside potential [6] - Recent upward revisions in price targets suggest a potential high-end range of $143, which could represent a new all-time high [6] Market Dynamics - Following the earnings release, Abbott's share price experienced a slight pullback, but analysts believe this could present a buying opportunity [7] - Critical support is identified near $115, and maintaining support above this level could lead to new highs before year-end [7]

Financial Performance - Abbott reported third-quarter 2024 sales of $10.6 billion, reflecting a 4.9% increase year-over-year, with organic sales growth of 8.2% driven by double-digit growth in Medical Devices[1][2] - The company achieved a GAAP diluted EPS of $0.94 and an adjusted diluted EPS of $1.21 for the third quarter, with full-year diluted EPS guidance raised to a range of $3.34 to $3.40[2][3] - Abbott's U.S. sales increased by 10.1% to $4.2 billion, while international sales grew by 1.7% to $6.4 billion, with total reported sales of $10.6 billion[4] - Total reported sales for the first nine months of 2024 were $6.821 billion, representing an 8.5% decrease compared to the same period in 2023[12] - Net sales for Q3 2024 reached $10,635 million, a 4.9% increase compared to $10,143 million in Q3 2023[30] - Operating earnings for Q3 2024 were $1,859 million, reflecting a 12.8% increase from $1,647 million in Q3 2023[30] - Net earnings for Q3 2024 were $1,646 million, up 14.6% from $1,436 million in Q3 2023[30] - For the nine months ended September 30, 2024, net sales totaled $30,976 million, a 3.7% increase from $29,868 million in the same period of 2023[34] Segment Performance - The Medical Devices segment reported a 11.7% increase in sales, reaching $4.7 billion, while Diagnostics sales decreased by 1.5% to $2.4 billion[4][10] - Abbott's Nutrition segment saw total sales of $2.1 billion, with U.S. sales up 10.4% and international sales down 7.9%[7][9] - Established Pharmaceuticals sales increased 2.7% on a reported basis and 7.0% on an organic basis in the third quarter of 2024, totaling $1.406 billion[13] - Worldwide Medical Devices sales increased 11.7% on a reported basis and 13.3% on an organic basis in the third quarter, totaling $4.747 billion[16] - Diabetes Care sales exceeded $1.6 billion, growing 19.1% on a reported basis and 20.7% on an organic basis[17] Guidance and Projections - The company maintains its full-year 2024 organic sales growth guidance of 9.5% to 10.0%, excluding COVID-19 testing-related sales[2][3] - Abbott projects full-year 2024 diluted earnings per share under GAAP of $3.34 to $3.40, with adjusted diluted earnings per share projected at $4.64 to $4.70[19] Shareholder Returns - Abbott declared a quarterly dividend of $0.55 per share, marking 403 consecutive quarterly dividends and 52 years of increased payouts[20] - Abbott's board authorized a new share repurchase program of up to $7 billion[2][3] Research and Development - Research and development expenses for Q3 2024 were $713 million, up 6.1% from $672 million in Q3 2023[30] - Research and Development (R&D) expenses for 9M24 were $2.014 billion, slightly down from $1.897 billion in 9M23, reflecting a decrease of 6.2%[42] COVID-19 Impact - COVID-19 testing sales decreased to $265 million in Q3 2024 from $305 million in the same quarter last year, impacting overall Diagnostics sales growth[10] - Excluding COVID-19 testing-related sales, global Core Laboratory Diagnostics sales grew 0.1% on a reported basis and increased 4.5% on an organic basis[11] Cost and Expenses - The company reported a total operating cost and expenses of $8,776 million for Q3 2024, a 3.3% increase from $8,496 million in Q3 2023[30] - The company recognized net after-tax charges of $473 million in Q3 2024 related to intangible amortization and other expenses[32] Future Outlook - The company anticipates continued compliance costs related to the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR)[59] - Future outlook includes ongoing restructuring and cost reduction initiatives, with a focus on improving operational efficiency and profitability[62]

Core Insights - Abbott reported third-quarter sales of $10.635 billion, reflecting a growth of 4.9% compared to $10.143 billion in the same quarter of 2023, with organic sales growth of 8.2% driven by strong performance in Medical Devices [1][26][30] - The company maintains its full-year 2024 organic sales growth guidance of 9.5% to 10.0%, excluding COVID-19 testing-related sales [2][22] - Abbott's diluted earnings per share (EPS) for the third quarter was $0.94, with adjusted diluted EPS of $1.21, marking a 14.6% increase from the previous year [2][30] Financial Performance - Total reported sales for the first nine months of 2024 reached $30.976 billion, a 3.7% increase from $29.868 billion in the same period of 2023 [32] - The company’s net earnings for the third quarter were $1.646 billion, up 14.6% from $1.436 billion in the prior year [30] - Abbott's operating earnings for the third quarter increased by 12.8% to $1.859 billion compared to $1.647 billion in the same quarter of 2023 [30] Business Segments - Medical Devices sales increased by 11.7% on a reported basis and 13.3% on an organic basis, with significant contributions from Diabetes Care and Structural Heart products [20] - Nutrition sales decreased by 0.3% on a reported basis but increased by 3.4% on an organic basis, driven by growth in Adult Nutrition [9][10] - Diagnostics sales were impacted by a decline in COVID-19 testing-related sales, with total diagnostics sales at $2.412 billion, down from $2.449 billion in the previous year [13][28] Strategic Initiatives - Abbott announced a new share repurchase program of up to $7 billion, reflecting confidence in its financial position [2] - The company launched Lingo™, a continuous glucose monitoring system available without a prescription, aimed at enhancing health and wellness [2] - Abbott's partnership with Medtronic aims to integrate its continuous glucose monitoring system with Medtronic's insulin delivery devices, enhancing product offerings in diabetes management [2] Market Outlook - Abbott's diversified business model positions it well for future growth, with expectations to achieve the upper end of its guidance ranges for the year [3] - The company continues to strengthen its portfolio through new product approvals and partnerships, indicating a proactive approach to market demands [1][2]

Core Insights - Abbott Laboratories is set to release its third-quarter earnings results on October 16, with analysts expecting earnings of $1.2 per share, an increase from $1.14 per share in the same period last year [1] - The company is projected to report revenue of $10.55 billion for the quarter [1] - Abbott's board declared a quarterly common dividend of 55 cents per share on September 19 [1] - Abbott shares experienced a decline of 0.6%, closing at $116.05 [1] Analyst Ratings - Raymond James analyst Jayson Bedford maintained an Outperform rating and raised the price target from $122 to $129, with an accuracy rate of 67% [2] - Evercore ISI Group analyst Vijay Kumar also maintained an Outperform rating, increasing the price target from $120 to $124, with an accuracy rate of 60% [2] - Jefferies analyst Raj Denhoy reiterated a Hold rating with a price target of $120, achieving an accuracy rate of 76% [2] - Piper Sandler analyst Adam Maeder initiated coverage with an Overweight rating and a price target of $131, holding an accuracy rate of 60% [2] - Citigroup analyst Joanna Wiensch maintained a Buy rating and raised the price target from $119 to $127, with an accuracy rate of 60% [2]

Big banks continue to highlight this week’s earnings lineup but several stocks are standing out from various industries that are in the top 40% of over 250 Zacks industries. Sporting a Zacks Rank #2 (Buy) here are three of these top-rated stocks that investors will want to consider as their Q3 results approach on Wednesday, October 16. Abbott Laboratories Industry: Medical Products Starting with a medical standout, Abbott Laboratories (ABT)  stock is attractive as a provider of pharmaceutical products, diag ...