Abbott Stock Gains On Q3 Performance, 10% Organic Diagnostics Revenue Growth, Raised Annual Outlook

Abbott Laboratories (NYSE: ABT) has reported Q3 FY23 adjusted EPS of $1.14, almost similar to $1.15 a year ago, beating the consensus of $1.04. Q3 sales of $10.1 billion decreased 2.6%, beating the consensus of $9.32 billion.

Organic sales growth for the underlying base business of 13.8% reflects double-digit growth in each of the four major businesses.

Diagnostics sales growth in the third quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales. Sales reached $2.5 billion, down from $3.6 billion a year ago.

Worldwide COVID-19 testing sales were $305 million in the third quarter of 2023 compared to $1.671 billion in the prior year's third quarter.

Excluding COVID-19 testing-related sales, global Diagnostics sales increased 8.8 percent on a reported basis and 10.1 percent on an organic basis.

Worldwide Nutrition sales increased 15.5% on a reported basis and 18.1% on an organic basis in the third quarter.

Established Pharmaceuticals sales increased 3.2% on a reported basis and 11.1% on an organic basis in the third quarter.

Outlook: Abbott projects FY23 adjusted EPS of $4.42-$4.46 versus prior guidance of $4.30-$4.50 and consensus of $4.18.

Price Action: ABT shares are up 4.27% at $96.02 during the premarket session on the last check Wednesday.