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Category: Stock Market and Abbott Laboratories
Date: 19 April 2020 Stock Price: $96.01 We take a look at the earnings report for the 1st quarter of their 2020 fiscal year of Abbott Laboratories a firm that provides products in diagnostics, medical devices, nutritional and branded medicines that employs more than 100 000 people in over 160 countries.
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About Abbott Laboratories
About Abbott: Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 107,000 colleagues serve people in more than 160 countries.
Overview of Abbott Laboratories' 1st quarter 2020 earnings report
The numbers below refers to the latest quarter unless specified otherwise
- Net sales: $7.726 billion (up from $7.535 billion for the same quarter of the previous year)
- Net sales increased by 2.5% over the last 12 months
- Cost of products sold: $3.281 billion (down from $3.160 billion for the same quarter of the previous year)
- Cost of products sold increased by 3.9% over the last 12 months
- Net Income: $564 million (down from $672 million for the same quarter of the previous year)
- Diluted earnings per share: $0.31 (down from $0.38 for the same quarter of the previous year)
- PE ratio of Abbott Laboratories: 47.8
- Dividend declared: $0.36
- Dividend yield of Abbott Laboratories: 1.49%
- Weighted average number of shares - diluted: 1.781 billion (up from 1.777 billion for the same quarter of the previous year)
Abbott Laboratories' management commentary on their 1st quarter 2020 earnings report
ABBOTT PARK, Ill., April 16, 2020 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the first quarter ended March 31, 2020.
"First and foremost, I want to thank our employees, our customers, and our suppliers for their extraordinary efforts to maintain supply of our critically important products to the people who need them, around the world," said Robert B. Ford, president and chief executive officer, Abbott. "It's an unprecedented time and our colleagues are rising to it in unprecedented ways."
"First and foremost, I want to thank our employees, our customers, and our suppliers for their extraordinary efforts to maintain supply of our critically important products to the people who need them, around the world," said Robert B. Ford, president and chief executive officer, Abbott. "It's an unprecedented time and our colleagues are rising to it in unprecedented ways."
ABBOTT'S GUIDANCE FOR 2020
Due to uncertainties regarding the duration and impact of the coronavirus (COVID-19) pandemic, Abbott is suspending its previously announced annual guidance for 2020.
ABBOTT DECLARES 385 TH CONSECUTIVE QUARTERLY DIVIDEND
On Feb. 21, 2020, the board of directors of Abbott declared the company's quarterly dividend of $0.36 per share. Abbott's cash dividend is payable May 15, 2020, to shareholders of record at the close of business on April 15, 2020. Abbott has increased its dividend payout for 48 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
Due to uncertainties regarding the duration and impact of the coronavirus (COVID-19) pandemic, Abbott is suspending its previously announced annual guidance for 2020.
ABBOTT DECLARES 385 TH CONSECUTIVE QUARTERLY DIVIDEND
On Feb. 21, 2020, the board of directors of Abbott declared the company's quarterly dividend of $0.36 per share. Abbott's cash dividend is payable May 15, 2020, to shareholders of record at the close of business on April 15, 2020. Abbott has increased its dividend payout for 48 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
Abbott Laboratories (NYSE: ABT) stock price history
The image below obtained from Google shows the stock price history of Abbott Laboratories (NYSE: ABT) for the last 5 years. 5 years ago the stock of Procter & Gamble was trading at around $81 and its currently trading at $124.69 a stock. That's a return of 53.9% provided to Procter & Gamble stockholders over the last 5 years.
The stock of Procter & Gamble is trading at a lot closer to its 52 week high of $128.09 than it is to its 52 week low of $94.34 which to us is a clear indication that the short term sentiment and momentum of Procter & Gamble's stock is positive.
The stock of Procter & Gamble is trading at a lot closer to its 52 week high of $128.09 than it is to its 52 week low of $94.34 which to us is a clear indication that the short term sentiment and momentum of Procter & Gamble's stock is positive.
Abbott Laboratories (NYSE: ABT) stock price history over the last 5 years
Recent coverage of Abbott Laboratories
The extract regarding the latest earnings report from Abbot Laboratories was obtained from Fool.com
The stock of Abbott Laboratories (NYSE:ABT) was hammered like many stocks were when the COVID-19 crisis hit. But Abbott has weathered the storm much better than most. In fact, its shares are now up year to date, boosted largely by the company's launch of a super-fast diagnostic test for COVID-19.
Investors received even more good news from Abbott when it announced its 2020 first-quarter results before the market opened on Thursday. Here are the highlights from Abbott's Q1 update.
By the numbers
Abbott announced Q1 revenue of $7.7 billion, a 2.5% increase from the $7.5 billion reported in the same quarter of the previous year. The company's reported revenue was higher than the average analyst estimate of $7.34 billion. The healthcare giant reported net income in the first quarter of $564 million, or $0.30 per share, based on generally accepted accounting principles (GAAP). This reflected a decline from GAAP net income of $672 million, or $0.38 per share, in the prior-year period. Abbott posted adjusted net income of $0.65 per share, up from $0.63 per share in the same period in 2019. This result handily beat the average analyst estimate of $0.58 per share.
Behind the numbers
Currency fluctuations were a significant headwind for Abbott in the first quarter. The company's organic growth rate in Q1 was 4.3%, well above its reported year-over-year revenue growth of 2.5%. Abbott's established pharmaceuticals unit generated the strongest organic growth. Sales for the segment increased by 9.3% year over year to $1.04 billion. All of the company's established pharmaceuticals revenue is generated in international markets. In terms of reported growth, though, Abbott's nutrition segment took the prize. The company announced nutrition revenue of $1.9 billion, up 6.3% year over year on a reported basis and a 7.3% year-over-year organic increase.
Medical devices revenue rose 2.9% over the prior-year period to $2.94 billion. A strong performance in international markets more than offset a 3.3% decline in U.S. medical device sales. The laggard for Abbott in the first quarter was its diagnostics segment with $1.83 billion in revenue, a 0.8% year-over-year decline. But U.S. sales grew briskly, jumping 10.9%.
Read the full article here
The stock of Abbott Laboratories (NYSE:ABT) was hammered like many stocks were when the COVID-19 crisis hit. But Abbott has weathered the storm much better than most. In fact, its shares are now up year to date, boosted largely by the company's launch of a super-fast diagnostic test for COVID-19.
Investors received even more good news from Abbott when it announced its 2020 first-quarter results before the market opened on Thursday. Here are the highlights from Abbott's Q1 update.
By the numbers
Abbott announced Q1 revenue of $7.7 billion, a 2.5% increase from the $7.5 billion reported in the same quarter of the previous year. The company's reported revenue was higher than the average analyst estimate of $7.34 billion. The healthcare giant reported net income in the first quarter of $564 million, or $0.30 per share, based on generally accepted accounting principles (GAAP). This reflected a decline from GAAP net income of $672 million, or $0.38 per share, in the prior-year period. Abbott posted adjusted net income of $0.65 per share, up from $0.63 per share in the same period in 2019. This result handily beat the average analyst estimate of $0.58 per share.
Behind the numbers
Currency fluctuations were a significant headwind for Abbott in the first quarter. The company's organic growth rate in Q1 was 4.3%, well above its reported year-over-year revenue growth of 2.5%. Abbott's established pharmaceuticals unit generated the strongest organic growth. Sales for the segment increased by 9.3% year over year to $1.04 billion. All of the company's established pharmaceuticals revenue is generated in international markets. In terms of reported growth, though, Abbott's nutrition segment took the prize. The company announced nutrition revenue of $1.9 billion, up 6.3% year over year on a reported basis and a 7.3% year-over-year organic increase.
Medical devices revenue rose 2.9% over the prior-year period to $2.94 billion. A strong performance in international markets more than offset a 3.3% decline in U.S. medical device sales. The laggard for Abbott in the first quarter was its diagnostics segment with $1.83 billion in revenue, a 0.8% year-over-year decline. But U.S. sales grew briskly, jumping 10.9%.
Read the full article here
Abbott Laboratories (NYSE: ABT) stock valuation
Based on Abbott Laboratories latest earnings report what do we value their stock at? Based on Abbott Laboratories earnings reported our valuation model provides a target price (full value price) at $79.70 per Abbott Laboratories stock. We therefore believe that the stock of Abbott Laboratories is overvalued.
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $79.70. We therefore believe a good entry point into Abbott Laboratories stock is at $71.70 or below. We expect the stock price of Procter & Gamble's to pull back in coming weeks and months to levels closer to our target price price (full value price) price of $79.70
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $79.70. We therefore believe a good entry point into Abbott Laboratories stock is at $71.70 or below. We expect the stock price of Procter & Gamble's to pull back in coming weeks and months to levels closer to our target price price (full value price) price of $79.70
Next earnings release of Abbott Laboratories
It is expected that Abbott Laboratories will release their Q2 2020 earnings report in late July 2020