Shares of Abbott Laboratories (NYSE: ABT) gained 2.2% on Wednesday after the company reported higher-than-expected results for the first quarter of 2022. The Illinois-based company sells medical devices, diagnostics, branded generic medicines, and nutritional products.
Adjusted earnings rose 31.1% year-over-year to $1.73 per share and surpassed the Street’s estimate of $1.47. Net sales grew 13.8% year-over-year to $11.9 billion and exceeded analysts’ expectations of $11 billion.
The Nutrition segment’s sales decreased 7% to $1.9 billion; sales of the Diagnostics segment rose 31.7% to $5.3 billion; the Established Pharmaceuticals segment’s sales jumped 7.1% to $1.1 billion; and the sales of the Medical Devices segment surged 7.4% to $3.6 billion.
Guidance
The company expects earnings of at least $3.35 per share in 2022. Further, it projects adjusted EPS to come in at $4.70 versus analysts’ expectations of $4.87.
Wall Street’s Take
After the results were announced, BTIG analyst Marie Thibault reiterated a Buy rating on the stock with a price target of $140 (14.2% upside potential).
Overall, the stock has a Strong Buy consensus rating based on nine Buys and one Hold. Abbott’s average price target of $143.30 implies 16.9% upside potential. Shares have lost 11.1% year-to-date.
Bloggers’ Opinion
TipRanks data shows that financial blogger opinions are 100% Bullish on ABT, compared to the sector average of 72%.
Conclusion
Abbott’s promising performance in the quarter and analysts’ positive sentiments point to the fact that the stock has the potential to give good returns. Further, ABT scores a 9 out of 10 on TipRanks.
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