Abbott Laboratories (ABT)

[wiwineguy]

Yes sir Dew, I was nit taking a shot at you Thought everyone already knew this and was already priced in. Then consider guidance. Should not be down like this.

[DewDiligence]

From my post earlier today:

The stock is trading down this morning because 3Q22 sales were hit by three factors: 1) The recall of infant formula produced at the Sturgis, MI plant; 2) declining COVID diagnostics ($1.7B in 3Q22 vs $2.3B in 2Q22); and 3) the strong US dollar.

[wiwineguy]

And yet its selling off like crazy

[DewDiligence]

ABT 3Q22 Results by Business Segment

  
                  %Corp      YoY Growth    
 Segment          Sales   (const currency)   
 Medical devices*  35%        +6%     
 Diagnostics       35%        -1%     
 Nutrition         17%       -10%     
 Drugs†            13%       +12%

3Q22 COVID-diagnostics sales were $1.7B, 46% of 3Q22 diagnostics sales.

61% of overall corporate sales were ex-US.

*Includes diabetes care.
†Branded generics in emerging markets.

[DewDiligence]

ABT reports 3Q22 results—raises 2022 EPS guidance:

https://abbott.mediaroom.com/2022-10-19-Abbott-Reports-Third-Quarter-2022-Results-and-Raises-Full-Year-EPS-Guidance

The stock is trading down this morning because 3Q22 sales were hit by three factors: 1) The recall of infant formula produced at the Sturgis, MI plant; 2) declining COVID diagnostics ($1.7B in 3Q22 vs $2.3B in 2Q22); and 3) the strong US dollar. Despite all this ABT now expects full-year 2022 non-GAAP EPS of $5.17-5.23 (up from the [lowball] prior guidance of $4.90B+).

4Q22 COVID-diagnostics sales are expected to be $500M, assuming no new spike in the pandemic.

3Q22 Freestyle Libre sales were $1.0B, +40% YoY in the US, but down YoY ex-US due to timing considerations (i.e. a changeover from Libre 2 to Libre 3 in major EU markets).

[DewDiligence]

ABT’s TCT presentations:

https://finance.yahoo.com/news/breaking-data-show-breadth-abbotts-184500590.html

[DewDiligence]

ABT 2Q22 CC transcript:

https://www.fool.com/earnings/call-transcripts/2022/07/20/abbott-laboratories-abt-q2-2022-earnings-call-tran/

[DewDiligence]

ABT 2Q22 Results by Business Segment

  
                  %Corp      YoY Growth    
 Segment          Sales   (const currency)   
 Medical devices*  33%        +8%     
 Diagnostics       38%       +37%     
 Nutrition         17%        -5%     
 Drugs†            11%        +9%

2Q22 COVID-diagnostics sales were $2.3B, 53% of 2Q22 diagnostics sales.

57% of overall corporate sales were ex-US.

*Includes diabetes care.
†Branded generics in emerging markets.

[DewDiligence]

ABT reports 2Q22 results–raises 2022 EPS guidance:

https://abbott.mediaroom.com/2022-07-20-Abbott-Reports-Second-Quarter-2022-Results-and-Raises-Full-Year-EPS-Guidance

The new 2022 non-GAAP EPS guidance is $4.90+ (up from the prior guidance of $4.70+).

The main reason for the raise in EPS guidance: in 2Q22, ABT sold $2.3B of COVID diagnostics, down from $3.3B in 1Q22 but crushing the prior guidance of $1.2B for 2Q22/3Q22/4Q22 combined. Full-year 2022 guidance for COVID diagnostics is now $6.1B (up from $4.5B), which implies $500K combined in 3Q22/4Q22.

2Q22 Freestyle Libre sales were $1.1B, +10% QoQ and +26% YoY in constant currency.

[wiwineguy]

Should be $150+

[DewDiligence]

FDA approves ABT’s Freestyle Libre 3—the most advanced version of the product, which has been approved internationally for several years:

https://finance.yahoo.com/news/abbotts-freestyle-libre-3-receives-120000002.html

• The FreeStyle Libre 3 system is the most accurate 14-day continuous glucose monitor1, with readings sent directly to a smartphone every minute.

• Designed for access and affordability, the FreeStyle Libre 3 system will be available at the same price as previous versions, which is one-third the cost of other competing continuous glucose monitoring systems available today.

ABT’s Freestyle Libre franchise had annualized sales of $4B in 1Q22 (#msg-168608801), making it the largest-selling medical device from any company.

[DewDiligence]

ABT is developing a monkeypox diagnostic:

https://finance.yahoo.com/news/1-abbott-developing-test-monkeypox-174632058.html

Roche is too.

[NOLA1961]

should be $140

[weedtrader420]

ABT $120 TARGET PRICE TODAY

[DewDiligence]

It was hit pretty hard in February, when this problem first surfaced.

[Termite7]

Surprised the stock wasn't hit massively.........

[DewDiligence]

ABT infant-formula plant expected back online soon:

https://www.wsj.com/articles/abbott-could-restart-baby-formula-production-within-two-weeks-11652293871

This has been weighing on the stock.

[Hunting_for_multiples]

Thanks. Was looking for a non Seeking alpha source

[DewDiligence]

1Q22 FreeStyle Libre sales were $1.0B (yes, a $4B annualized rate), +26% YoY in constant currency.

~40% of users are now type-2 diabetics who take insulin only once/day, a market segment where ABT itself is surprised by the degree of penetration.

[DewDiligence]

ABT 1Q22 CC transcript:

https://www.fool.com/earnings/call-transcripts/2022/04/20/abbott-laboratories-abt-q1-2022-earnings-call-tran/

[DewDiligence]

ABT 1Q22 Results by Business Segment

  
                  %Corp      YoY Growth     
 Segment          Sales   (const currency)    
 Medical devices*  30%       +12% 
 Diagnostics       44%       +35% 
 Nutrition         16%        -4% 
 Drugs†            10%       +13%

1Q22 COVID-diagnostics sales were $3.3B (vs $2.3B in 4Q21), 62% of total 1Q22 diagnostics sales and 28% of total 1Q22 corporate sales.

Nutrition sales in the US were hampered by the infant-formula recall in Feb 2022 (#msg-168576155, #msg-167958896).

58% of overall corporate sales were ex-US.

*Includes diabetes care.
†Branded generics in emerging markets.

[DewDiligence]

ABT sold $3.3B of COVID diagnostics in 1Q22:

https://abbott.mediaroom.com/2022-04-20-Abbott-Reports-First-Quarter-2022-Results

Full-year 2022 non-GAAP EPS guidance remains unchanged at $4.70+. This guidance includes only $1.2B of cumulative COVID-diagnostics sales for 2Q22/3Q22/4Q22, which seems like a conservative forecast.

[DewDiligence]

CDC unable_to_link infant-formula contamination_to ABT’s manufacturing plant:

https://www.wsj.com/articles/contaminated-baby-formula-investigation-turns-murky-11650283200

Federal officials received complaints over four months beginning last September of four babies who were hospitalized with rare bacterial infections after being fed powdered baby formula made at an Abbott Laboratories manufacturing plant in Sturgis, Mich. Two of the babies later died.

…But when the Centers for Disease Control and Prevention analyzed the genetic makeup of bacteria found in the Abbott plant and two of the four infected babies, the results didn’t confirm a connection. If genetic sequences from the samples had matched, it would have gone a long way to establishing a connection to the manufacturing plant. But the babies’ bacteria didn’t match each other or the strains found in Abbott’s plant.

…Powdered baby formula can also become contaminated during preparation as it is combined with water, said Aliyar Cyrus Fouladkhah, associate professor at Tennessee State University’s department of agricultural and environmental sciences. There have been sporadic cases of infants catching the bacteria from the natural environment, said Dr. Fouladkhah, and researchers in the past have found the bacteria on refrigerators, kitchen sinks and countertops.

In this case, one patient sample did match a cronobacter sample found in opened infant formula from the patient’s home, a CDC spokeswoman said. “It is possible that the cases included in this investigation occurred due to contamination of the formula after it was opened, which is how cronobacter often gets into powdered formula,” she said.

…Abbott doesn’t believe the four infant illnesses were caused by contamination at its plant, a spokesman said. “Like the FDA, we have not found any cronobacter sakazakii or salmonella in any of our testing of distributed products,” the Abbott spokesman said.

[DewDiligence]

ABT fell 6% cumulatively_on_Thu/Fri_due_to infant-formula recall:

https://finance.yahoo.com/news/abbott-voluntarily-recalls-powder-formulas-221100997.html

Although ABT’s PR was issued after the market close on Thursday, news of the recall was already on the internet during trading hours.

Although ABT says the effect of the recall will not be material to 1Q21 financial results and ABT has reiterated 2022 non-GAAP EPS guidance of $4.70+, the blow to ABT’s reputation as a quality vendor may linger. Still, the 6% hit to the share price Thursday and Friday, which erased $13B in enterprise value, probably exceeded the actual damage on an NPV basis.

[DewDiligence]

ABT 4Q21 CC transcript:

https://www.fool.com/earnings/call-transcripts/2022/01/26/abbott-laboratories-abt-q4-2021-earnings-call-tran

[DewDiligence]

ABT 4Q21 Results by Business Segment

  
                  %Corp      YoY Growth    
 Segment          Sales   (const currency)   
 Medical devices*  33%       +16%     
 Diagnostics       39%        +3%     
 Nutrition         18%        +6%     
 Drugs†            10%        +6% 

4Q21 COVID diagnostics sales were $2.3B, 51% of total 4Q21 diagnostics sales and 20% of total 4Q21 corporate sales.

58% of overall corporate sales were ex-US.

*Includes diabetes care.
†Branded generics in emerging markets.

[DewDiligence]

ABT 2021 non-GAAP EPS=$5.21, above the prior guidance range of $5.00-5.10 due to a surge in COVID diagnostics sales in December related to Omicron.

ABT’s 2022 non-GAAP-EPS guidance is >=$4.70 (-10% YoY) due to lower expected sales of COVID diagnostics, which were $7.7B(!) in 2021 and $2.3B in 4Q21.

4Q21 PR:
https://abbott.mediaroom.com/2022-01-26-Abbott-Reports-Strong-Fourth-Quarter-2021-Results-Issues-2022-Forecast

1-page summary sheet:
https://www.abbottinvestor.com/static-files/d7299f5f-28d7-4f48-aaf8-729bfc7c4157

[wiwineguy]

Good news is bad news.

[DewDiligence]

ABT announces line of consumer wearable biosensors—building on success of Freestyle Libre:

https://finance.yahoo.com/news/abbott-announces-future-biowearables-consumer-181500118.html

https://www.barrons.com/articles/abbott-labs-ceo-unveils-wearable-bionsensors-at-ces-51641505214

[DewDiligence]

ABT hits all-time high on increased demand for COVID testing.

[DewDiligence]

ABT boosts dividend for 50th(!) consecutive year—new annualized payout=$1.88 (up from $1.80 in 2021 and $1.44 in 2020):

https://finance.yahoo.com/news/abbott-increases-quarterly-dividend-50th-180000031.html

ABT has always been more of a growth stock than an “income” stock; still, the new annualized payout represents a dividend yield of 1.4%.

[DewDiligence]

ABT has essentially restored its 2021 non-GAAP EPS guidance from Apr 2021, which was $5.00+. In April, ABT expected 2021 COVID-diagnostics sales of $6.0-6.5B. In June, ABT lowered EPS guidance and reduced its expectation for 2021 COVID-19 sales to $4.0-4.5B (#msg-164129735) because COVID testing declined precipitously.

Then, the COVID Delta variant came calling. Now, it looks like ABT’s original forecast of $6.0-6.5B in 2021 COVID-diagnostic sales will be met after all, insofar as sales for the first 9 months of the year have been $5.4B.

[DewDiligence]

ABT 3Q21 CC transcript:

https://www.fool.com/earnings/call-transcripts/2021/10/20/abbott-laboratories-abt-q3-2021-earnings-call-tran

[DewDiligence]

ABT 3Q21 Results by Business Segment

  
                  %Corp      YoY Growth   
 Segment          Sales   (const currency)  
 Medical devices*  33%       +13%    
 Diagnostics       36%       +47%    
 Nutrition         19%        +9%    
 Drugs†            12%       +15% 

3Q21 COVID-19 diagnostics sales were $1.9B, 49% of total 3Q21 diagnostics sales.

60% of overall corporate sales were ex-US.

*Includes diabetes care.
†Branded generics in emerging markets.

[DewDiligence]

ABT 3Q21 results—2021_non-GAAP_EPS_guidance—>$5.00-5.10 (from $4.30-4.50):

https://abbott.mediaroom.com/2021-10-20-Abbott-Reports-Third-Quarter-2021-Results-Achieves-Strong-Double-Digit-Earnings-Growth-and-Raises-Guidance

3Q21 COVID-diagnostics sales were $1.9B.

[wiwineguy]

new 52 week high!

[DewDiligence]

ABT 2Q21 Results by Business Segment

 
                  %Corp      YoY Growth  
 Segment          Sales   (const currency) 
 Medical devices*  36%       +45%   
 Diagnostics       32%       +57%   
 Nutrition         21%       +10%   
 Drugs†            12%       +15%

2Q21 COVID-19 diagnostics sales were $1.5B, 46% of total 2Q21 diagnostics sales.

65% of overall corporate sales were ex-US.

*Includes diabetes care.
†Branded generics in emerging markets.

[DewDiligence]

ABT 2Q21 results—2021_non-GAAP-EPS_guidance_remains $4.30-4.50:

https://abbott.mediaroom.com/2021-07-22-Abbott-Reports-Second-Quarter-2021-Results

[wiwineguy]

good call wine guy!

[wiwineguy]

I'm back in down here

[DewDiligence]

A rare slip-up that doesn't mean much in the overall scheme of things.

[conix]

Temporary fundamental negative. And ABT is going on sale now.

[DewDiligence]

ABT cuts_2021_non-GAAP_EPS_guidance_due to_slowdown_for_COVID_diagnostics:

https://finance.yahoo.com/news/abbott-issues-updated-2021-outlook-120000024.html

Abbott today announced an update to its financial outlook for the full-year 2021. The updated guidance is due to significantly lower recent and projected COVID-19 diagnostic testing demand. This has been driven by several factors, including significant reductions in cases in the U.S. and other major developed countries, accelerated rollout of COVID-19 vaccines globally and, most recently, U.S. health authority guidance on testing for fully vaccinated individuals.

The new guidance for 2021 non-GAAP EPS guidance is $4.30-4.50, down from the $5.00+ guidance given in April (#msg-163300631).

I can't recall ABT's ever cutting guidance before. That's how reliable it has been.

[DewDiligence]

ABT 1Q21 CC transcript:

https://finance.yahoo.com/m/f830d23c-6a68-3b40-b967-b9a8aa18c7f1/abbott-laboratories-(abt)-q1.html

[DewDiligence]

ABT 1Q21 Results by Business Segment

  
    
                  %Corp      YoY Growth 
 Segment          Sales   (const currency) 
 Medical devices*  32%        +9%  
 Diagnostics       38%      +115%  
 Nutrition         19%        +6%  
 Drugs†            10%        +6%
63% of overall sales were ex-US.  
  
 *Includes diabetes care.  
 †Branded generics in emerging markets.
                            

[DewDiligence]

ABT _sold_$2.2B_of_COVID-19_diagnostics_in_1Q21 (down from $2.4B in 4Q20):

https://abbott.mediaroom.com/2021-04-20-Abbott-Reports-First-Quarter-2021-Results

Non-GAAP EPS guidance for 2021 remains >=$5.00 (+37%, or more, relative to 2020).

1Q21 one-page graphic:
https://www.abbottinvestor.com/static-files/f172ced6-f814-490b-8e5c-3be152119058

[Taurus69]

$abt $120.75 ^ 0.97 (0.81%)
Volume: 4,102,501 @04/09/21 7:45:17 PM EDT

[DewDiligence]

ABT’s BinaxNOW COVID-19_test_available_OTC—for_self_testing_w/o_prescription:

https://finance.yahoo.com/news/abbotts-binaxnow-rapid-antigen-self-030600236.html

Abbott announced today it has received U.S. Food and Drug Administration (FDA) Emergency Use Authorization (EUA) for over-the-counter, non-prescription, asymptomatic use of its BinaxNOW COVID-19 Ag Self Test for detection of COVID-19 infection. This new indication allows individuals with or without symptoms to have access to this test without a prescription. Abbott will begin shipping to major food, drug and mass merchandiser retailers in the coming weeks and expect the test to be available through some of their online store websites.

…Using the test will be simple, even for people who have never tested themselves. People will only need to perform a minimally invasive nasal swab (not the deep nasopharyngeal swab) and all materials required to perform the test (swab, test card, and reagent solution) will come in the box.

…The BinaxNOW Self Test is the same technology as the existing BinaxNOW test that has been available since August 2020 but is indicated by the FDA for serial asymptomatic testing, meaning that people should test themselves frequently.

The test result is available in 15 minutes.

[DewDiligence]

ABT launches_4-in-1_test_for COVID/RSV/flu-A/flu-B:

https://finance.yahoo.com/news/abbott-receives-fda-eua-laboratory-140000497.html

Abbott (NYSE: ABT) today announced U.S. Food and Drug Administration (FDA) Emergency Use Authorization (EUA) for the company's Alinity m Resp-4-Plex molecular assay to detect and differentiate SARS-CoV-2, influenza A, influenza B and respiratory syncytial virus (RSV) in one test. This is an important tool because these viruses have similar symptoms but require different treatment approaches.

…The Alinity m Resp-4-Plex test can be conducted with one swab specimen (anterior nasal or nasopharyngeal) collected by a healthcare provider or an anterior nasal swab specimen self-collected at a healthcare location from individuals suspected by their provider of respiratory viral infection consistent with COVID-19. Test will run on Abbott's Alinity m system — the company's most advanced high-volume laboratory molecular instrument. Alinity m uses Polymerase Chain Reaction (PCR) technology, which is known for its high sensitivity in detecting infectious diseases.

ABT’s 4-in-1 test already has a CE Mark for ex-US use.

[wiwineguy]

or $116...