Abbot tops first-quarter EPS by $0.26

Abbot (NYSE: ABT) records a first-quarter EPS of $1.73, beating analyst estimates of $1.47 by 25 cents. The company recorded a first-quarter revenue of about $11.9 billion, which also topped the $11.02 billon consensus estimate.

Abbot maintains a full-year 2022 EPS financial guidance of about$4.70.

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Topping Q1 consensus estimates 

Abbot’s Chief Executive Officer and Chairman, Robert Ford, said:

Our diversified business continues to perform well in a challenging environment. We’re particularly pleased with the strong performance we’re achieving in Medical Devices and Established Pharmaceuticals.

The company recorded a 13.8% sales growth and a 17.5% organic sales growth. When it came to sales related to global Covid-19 testing, Abbot reported total sales of about $3.3 billion in Q1 of 2022. Excluding these sales, sales growth in the first quarter came to 3.9%, while organic sales growth came to about 7.7%.

It reported a 37.8% GAAP diluted EPS growth and a 31.1% adjusted diluted EPS growth. The company continues to strengthen its overall portfolio with expanded reimbursement coverage and new product approvals.

Financial and business highlights

The $11.9 billion in sales recorded in the first quarter represents a 13.8% increase on a reported basis, as well as an organic basis of about 17.5%, excluding the foreign exchange impact. The company projects a diluted full-year 2022 EPS of at least $3.35 on a GAAP basis. The 2022 financial guidance includes projected sales of roughly $4.5billion in the global Covid-19 testing-related space.

In February, the company initiated a recall of certain infant-related formula products developed at one of its facilities based in the United States. It’s working closely with the FDA and has started implementing corrective enhancements and actions to the facility.

In the same month, the company also got approval from the U.S Food and Drug Administration for its CardioMEMS HF System. This HF system is a remote monitoring system and tiny implantable sensor that can help detect warning signs of heart failure.  

Unfortunately, global nutrition sales dropped by about 7% in the first quarter. However, that’s more or less some of the worst they faced in this quarter.