Abbott Laboratories Shares Slump as Q1 Earnings and Revenue Fall Shy of ExpectationsIllinois-based medical devices and health care company Abbott Laboratories’ shares fell over 3% on Tuesday after the company missed earnings and revenue estimates for the first quarter.
Illinois-based medical devices and health care company Abbott Laboratories’ shares fell over 3% on Tuesday after the company missed earnings and revenue estimates for the first quarter.
The U.S. health care company said its net sales rose to $10.5 billion, missing Wall Street consensus estimates of $10.7 billion. The company’s adjusted earnings per share rose more than 103% to $1.32 in the quarter ended March 31, a touch below the market expectations of $1.27.
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Abbott forecasts full-year 2021 diluted EPS from continuing operations on a GAAP basis of at least $3.74and full-year adjusted diluted EPS from continuing operations of at least $5.00, which is unchanged and indicates a growth of over 35% from the same period a year ago.
Abbott Laboratories shares fell over 3% to $120.46 on Tuesday.
“ABT posted 33% organic sales growth in 1Q. Revenue and EPS were $10.5B and $1.32vs. Street estimates of $10.7B and $1.27. All four of ABT’s divisions showed solid growth. Within Diagnostics, COVID-19 test sales were $2.2B, slightly less than the $2.3B consensus. Still, ABT reaffirmed full-year EPS guidance of at least $5.00, which represents a growth of 35% or more. Reiterate Outperform, $140 PT,” noted Joshua Jennings, equity analyst at Cowen.
Abbott Laboratories Stock Price Forecast
Eleven analysts who offered stock ratings for Abbott Laboratories in the last three months forecast the average price in 12 months of $134.00 with a high forecast of $145.00 and a low forecast of $122.00.
The average price target represents a 7.60% increase from the last price of $124.53. Of those 11 analysts, nine rated “Buy”, two rated “Hold” while none rated “Sell”, according to Tipranks.
Morgan Stanley gave the base target price of $136 with a high of $148 under a bull scenario and $100 under the worst-case scenario. The firm gave an “Overweight” rating on the health care products manufacturer’s stock.
“Abbott delivers double-digit underlying organic growth in 2021 and sees >$6bn in COVID-19 Dx Revenues, with Device growth driven by key products (e.g. Libre, Mitraclip). Abbott has high exposure to emerging markets and consumer-directed businesses, driving the potential for sustainable double-digit earnings growth but also subjecting the company to EM currency exposure that is the highest among our Device coverage,” said Cecilia Furlong, equity analyst at Morgan Stanley.
“Leverage opportunities are visible across multiple business segments including Nutrition, Diagnostics, and EPD, where peer margins demonstrate the potential for improvement.”
Several other analysts have also updated their stock outlook. Raymond James raised their price objective to $130 from $126 and gave the stock an “outperform” rating. Wells Fargo & Company upped their price objective to $137 from $128. BTIG Research upgraded from a “neutral” rating to a “buy” rating and set a $140 target price. Cowen increased their price target to $140 from $113 and gave the stock an “outperform” rating.
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