Abbott Prepares for Q4 Earnings Release

Abbott Laboratories (NYSE:ABT) is set to unveil its Q4 and 2023 earnings report before the market opens on Wednesday.

The medical devices and products manufacturer is expected to announce improved year-over-year earnings and revenue, following four quarters of declining results as sales of COVID-19 products slowed.

Analysts, on average, project that Abbott will report a Q4 adjusted profit of $1.19 on revenue of $10.19B, compared with an adjusted profit of $1.03 on revenue of $10.09B for Q4 2022.

Abbott has a strong track record of exceeding expectations, surpassing both top and bottom line consensus estimates for eight consecutive quarters.

Abbott’s stock is currently trading at a similar price to three years ago, following significant losses in 2022 due to high-profile recalls of its baby formula and decreased COVID-19 testing. However, it has seen a slight increase from its position 12 months ago, while the S&P 500 has risen by almost 21%.

Nevertheless, the stock has exhibited better performance of late, gaining 4.5% over the past 30 days, compared to a 1.9% uptick in the S&P 500.

In December, Abbott solidified its Dividend King status by elevating its quarterly dividend by 7.8% to $0.55 per share.

Investors will be watching closely to see if the popularity of GLP-1 weight-loss drugs is affecting Abbott’s profitable diabetes products business, which includes FreeStyle Libre continuous glucose monitors.

In the last quarter’s earnings call, Abbott CEO Robert Ford downplayed such concerns, suggesting that the drugs might actually bolster sales of its nutritional products, as long-term use of GLP-1 can result in decreased muscle mass in some users.

Furthermore, investors will be keen to observe how the company’s baby formula business is recuperating after facing several months of closure in 2022 due to quality control issues.