Following the announcement of a satisfactory earnings report, shares of Abbott Laboratories saw an increase. On Wednesday, investors responded positively to the healthcare company’s third-quarter results, resulting in a 1.5% rise in its stock price, surpassing the 0.5% gain of the S&P 500 index.
During the quarter, Abbott reported revenues of nearly $10.64 billion, marking a 5% growth compared to the previous year. The company’s adjusted net income rose by 6% to $2.12 billion, or $1.21 per share. Both of these key figures slightly exceeded the expectations of analysts, who had forecasted revenues of $10.56 billion and adjusted net income of $1.20 per share.
The growth in Abbott’s revenue was largely attributed to its medical devices segment, the largest of its four reporting units. This segment achieved revenues of almost $4.75 billion, a 14% increase from the same quarter last year. Additionally, the nutrition segment also performed well, with a 10% rise to nearly $2.1 billion.
In the earnings release, CEO Robert Ford expressed optimism, stating that the company is “well positioned to achieve the upper end of our initial guidance ranges for the year and have great momentum heading into next year.” Reflecting this confidence, Abbott’s management has raised the midpoint of its adjusted earnings guidance for full-year 2024, now estimating it to be between $4.64 and $4.70 per share. Additionally, they project that revenue will grow by 9.5% to 10% compared to 2023’s results.
