Down 7% This Year Will Abbott Stock See Higher Levels Post Q2 Results?

Core Insights - Abbott is expected to report Q2 2024 results on July 18, with projected revenue of $10.3 billion and earnings of $1.10 per share, aligning with market expectations [1] - The stock has underperformed compared to the S&P 500 over the past three years, with returns of 29% in 2021, -22% in 2022, and 0% in 2023, while the S&P 500 saw returns of 27%, -19%, and 24% respectively [1] - Abbott's stock is currently valued at $103, with an estimated valuation of $123 per share, indicating a potential growth of about 20% [3] Financial Performance - In Q1 2024, Abbott reported revenue of $10 billion, a 2.2% year-over-year increase, with a 14% rise in medical device sales and a 5% increase in nutrition sales [4] - The diagnostics segment saw an 18% decline in revenue due to reduced demand for COVID-19 testing, although excluding COVID-19 tests, diagnostics sales increased by 2.7% [4] - The adjusted pre-tax income margin decreased by 120 basis points year-over-year to 20.4%, resulting in a 5% decline in adjusted earnings to $0.98 [4] Segment Growth Expectations - For Q2 2024, Abbott is expected to see growth across its segments, particularly in nutrition due to market share gains in baby formula products and increased sales in medical devices driven by higher procedure volumes [5] - The FreeStyle Libre product is anticipated to continue driving growth in diabetes sales, while COVID-19 testing sales are expected to decline from $263 million in Q2 2023, slightly offsetting growth in core laboratory diagnostics [5]