Abbott Laboratories ($ABT) Earnings (Q3 FY22)

 Abbott Laboratories ($ABT) Earnings and Opinion:


Abbott Laboratories is a company in the Healthcare sector and operates in the Medical Devices industry. The company discovers, develops, manufactures, and sells health care products worldwide. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois. The company went public in an IPO in 1929.

Abbott Laboratories Earnings and Results:

  • Revenue of $10.41B beating expectations of $9.67B
  • Gross Margin of 55.9% beating expectations of 55.85%
  • Adj Operating Margin of 23.97% beating expectations of 20.28%
  • YOY Organic Growth of 1.3% beating expectations of -5.77%
  • Adj Diluted EPS of $1.15 beating expectations of $0.94
Opinion:
Abbott Laboratories is currently getting drilled in todays trading session. The company reported earnings before the market opened this morning. The declines come from some worries investors had. The company saw declines in the Covid testing segment and the infant nutrition business. Both of these metrics still beat estimates, but the investors see it as something that is fading out. Basically, the investors are putting some pressure on the company to step up its performance. They have already invested in a half a billion dollar baby formula production facility. The company is in the works of trying to alleviate the baby formula shortage in the United States. Taking a deeper dive into earnings, YOY organic growth stood out a lot. The operating margin, when adjusted, looked pretty solid. As far as valuation goes, EV/EBITDA was at 12.89, which is lower than the peers median at 17.44. The P/E ratio is at 20.89, which is also below the peers median at 25.19. Overall, the company looks pretty cheap, compared to its competitors. In my opinion, if you're looking into medical devices companies, this one seems to be the best bet. I think the forward outlook looks very strong for the business. They are in the process of making up for the slowdown from Covid, but they are doing a mighty fine job. I love the YOY organic growth and hope they can build on it. If all goes right with the baby formula production facility, this company could see some increase in earnings in the near-term. I think you have a pretty good value stock with this one, and a solid dividend for a medical device company. I am long Abbott Laboratories $ABT.


*Information from Yahoo Finance and Bloomberg

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