Abbott Laboratories (NYSE: ABT) released a positive Q2 earnings report on July 20, 2023, causing ABT Stock to swell 2.20%. In the second quarter of 2023, the pharmaceutical giant witnessed a double-digit increase in year-over-year (YoY) sales in its multiple segments.
With the drop in Covid cases, the senior citizens and other patients who kept major medical procedures on hold are progressing towards their procedures now. This results in gaining noticeable revenue.
Abbott Laboratories (ABT Stock): Financial Analysis
Abbott’s sales suffered by 11.4% to $9.98 Billion, but it still managed to surpass the expectations of $9.71 Billion. The company blamed the sales drop on declining Covid testing kits as pandemic fear eased.
Medical device sales increased 13.5% to $4.3 Billion, and overall domestic sales fell 46% to $2.32 Billion. Moreover, sales outside the U.S. were up by 5.2% to $1.29 Billion.
Organic sales are one of the critical emerging avenues for the company and gained 4.6% YoY. This rise was fueled by growth in specific geographies and therapeutic areas, for instance, women’s health, gastroenterology, and central nervous system (CNS) procedures, also known as pain management.
Abbott Laboratories (NYSE: ABT): Technical Analysis
At press time, ABT stock is trading at $114.29 and gained 2.20%; previous close and open were at $111.83 and $112.85, respectively. The 52-week range is from $93.25 to $115.29, indicating that the current price is shying away from the top.
With a volume of 7.06 Million shares, the market cap is $198.745 Billion.
The trailing twelve-month (TTM) price-to-earnings (P/E) ratio is 34.74, indicative of a slightly overvalued stock price.
At the same time, the (TTM) earnings per share (EPS) is $3.29, showcasing strength. Analysts have placed a 2.56 rating for moderate buy and estimated a price target of $120.24 with an upside of 5.4%.
Abbott reported its latest Q2 earnings on July 20, 2023, where the reported revenue of $9.978 Billion surpassed the expected value of $9.711 Billion by 2.75%. When compared to the previous quarter, revenue fell 11.36%.
At the same time, the reported earnings of $1.08 per share exceeded the expected value of $1.05 per share by 2.89%, whereas compared to Q1, it fell by 24.48%.
The Q2 Generally Accepted Accounting Principles (GAAP) diluted EPS came at $0.78 per share. Abbott’s projected organic sales growth for 2023 excludes the COVID-19 testing kit to be in the lower double digits. At the same time, the COVID–19 related sales would be around $1.3 Billion.
Abbott Laboratories (ABT Stock) – Candle Exploration
Q2 earnings brought a serious jump of about 7%, causing the price to brush the crucial resistance. If the rally continues and price action sustains after $114.32, a momentum crossing S1 at $118.09 can be seen. However, a strong bullish momentum shall come after the price crosses R2 at $122.01.
EMA is relatively flat, and an RSI of 74.35 just entered the overbought zone, hinting at a slight price drop.
Even if the price falls, it should not go below S1 at $106.21 and consolidate for some time. If the price falls below S2 at $100.45, new lows for 2023 can be seen.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/07/22/abbott-laboratories-abt-stock-positive-earnings-caused-rally/