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2022-04-20 18:00

Abbott Laboratories Inc. is up 2.0% in the stock market on Wednesday after reporting its financial results for the first quarter of 2022. Abbott is a worldwide healthcare firm dedicated to assisting people at all stages of life to live more fully. With top businesses and products in diagnostics, medical devices, nutritionals, and branded generic medications, their portfolio of life-changing technology spans the healthcare spectrum.

Financial Updates
Sales of $11.9 billion in the first quarter climbed 13.8% on a reported basis and 17.5 % organically, excluding the effects of foreign exchange. In the first quarter, international nutrition sales fell 7.0% on a reported basis and 4.4% on an organic basis. A voluntary recall of some powder formulae created at one of Abbott's U.S. plants reduced sales during the quarter. GAAP diluted EPS for the first quarter was $1.37, while adjusted diluted EPS, which eliminates specific items, was $1.73. For Q1 2022, global COVID-19 testing-related sales totalled $3.3 billion.

The $215.52 billion company that trades at a PE multiple of 30.92 is down more than 10% for the year at present.

Future Outlook
Abbott maintains its full-year 2022 diluted EPS projections of at least $3.35 on a GAAP basis and at least $4.70 on an adjusted basis. The company estimates COVID-19 testing-related sales of $4.5 billion in 2022, which it expects to occur mostly in the first half of the year and will monitor on a quarterly basis.

Robert B. Ford, chairman and CEO said:

"Our diversified business continues to perform well in a challenging environment. We're particularly pleased with the strong performance we're achieving in Medical Devices and Established Pharmaceuticals."

What else was noteworthy?
Abbott announced a voluntary recall of some infant formula products made at one of its U.S. factories in February. They are collaborating with the US Food and Drug Administration (FDA) to execute corrective actions and facility improvements. Abbott's CardioMEMS HF system which is a small implantable sensor and remote monitoring system that can identify early warning symptoms of deteriorating heart failure, gained FDA approval for an extended indication in February.

Abbott stated in March that their FreeStyle Libre system is so far the only continuous glucose monitoring (CGM) device in Japan to get increased coverage for all diabetics who are using insulin. The company also received FDA approval in April for its Aveir single-chamber leadless pacemaker for the treatment of patients with sluggish cardiac rhythms in the United States. Leadless pacemakers, unlike regular pacemakers, do not need a chest incision or leads (wires) to give therapy.