Zinger Key Points
- Abbott's Q4 sales reached $10.97 billion, growing 7.2% YoY but falling short of expectations.
- Stifel and Piper Sandler analysts maintain positive ratings and price forecasts of $135 and $133, respectively.
- Get the Real Story Behind Every Major Earnings Report
On Wednesday, Abbott Laboratories ABT reported fourth-quarter sales of $10.97 billion, up 7.2% year over year, missing the consensus of $11.01 billion.
Organic sales growth for the underlying base business was 8.8%. Organic growth, excluding COVID-19 testing-related sales was 10.1%.
Stifel analyst Rick Wise has a positive outlook on Abbott’s Q4 2024 results and its 2025 projections. He sees strong momentum in the Diabetes Care and Structural Heart segments, which are expected to drive double-digit growth in the Medical Device division and high-single-digit growth for the entire company.
Also Read: Abbott Laboratories Recalls Some Sensors For Its Popular FreeStyle Libre 3 Glucose Monitoring System
CEO Robert Ford outlined key growth opportunities for the Diabetes Care division. These include increasing the use of continuous glucose monitors (CGMs) among insulin-intensive patients, expanding market share with the Libre system's insulin pump connectivity, and tapping into the consumer market with the Lingo CGM.
Additionally, Abbott expects to achieve 150 basis points of operating margin improvement, reflecting the success of its internal cost initiatives. This positions the company to sustain double-digit EPS growth over the long term.
Stifel analyst says Abbott's business divisions are offering more unique products, positioning the company for strong growth in the MedTech sector as the post-COVID recovery continues. They expect Abbott to improve its revenue and profits in the coming years, driven by better execution, the launch of key products across its franchises, and a sharper focus on generating cash and reducing debt.
Stifel maintains the Buy rating with a price forecast of $135, up from $130.
Piper Sandler says the Q4 report was positive, with Abbott taking strong underlying performance into the new year. The analyst Adam Maeder remains constructive on shares and believes Abbott stock is arguably the best way to get exposure to GARP in large-cap MedTech. Piper reiterates the Overweight rating with a price forecast of $133.
Price Action: Abbott stock is up 3.7% at $122.15 at last check Thursday.
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