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30800.0 | 2023-08-14 00:00:00 UTC | 2 Best Healthcare Stocks to Buy Right Now | ABT | https://www.nasdaq.com/articles/2-best-healthcare-stocks-to-buy-right-now-1 | nan | nan | As a dividend investor, it pays to pick stocks operating in evergreen industries. The demand for goods and/or services in these industries tends to remain strong over decades and in all types of economic environments.
In the healthcare industry, there is no shortage of sectors that tap into evergreen business opportunities. That's because routine access to healthcare is and will always be essential to promoting higher quality of life for patients.
Let's take a closer look at two companies that are leaders in this sector and could be investments worth considering for dividend investors.
Image source: Getty Images.
1. Abbott Laboratories: A balanced healthcare play
Investors seeking a company with a multi-faceted presence within healthcare would do well to consider Abbott Laboratories (NYSE: ABT). Across its four business segments, the company posted $43.7 billion in sales during 2022. This was led by the $16.6 billion that came from its diagnostics segment (like its BinaxNOW COVID-19 rapid test). Another $14.7 billion was derived from the medical devices segment (like FreeStyle Libre continuous glucose monitors). The nutrition segment, with products like Similac infant formula, chipped in $7.5 billion in revenue. And the established pharmaceuticals segment that sells generic medicines in emerging markets contributed the remaining $4.9 billion in revenue in 2022.
Thanks to a broad-based sales mix, analysts expect the company's non-GAAP (adjusted) diluted earnings per share (EPS) to rise by 27.5% from 2023 to $5.61 in 2026. Aside from this healthy growth forecast, Abbott's 1.9% dividend yield is moderately greater than the 1.5% yield of the S&P 500 index. And with the dividend payout ratio poised to register at around 46% in 2023, the company should have no trouble extending its 51-year dividend growth streak in the years ahead.
To top it off, Abbott's valuation is cheap when you consider its reputation as a highly reliable dividend grower: The stock's forward price-to-earnings (P/E) ratio of 22.9 is below the medical devices industry peer average valuation multiple of 24.4. Analysts have an average 12-month share price target of $125 on Abbott. Given the current share price of around $105, Abbott looks like an intelligent buy for dividend growth investors.
2. Humana: A bet on rising health insurance demand
As people age, they tend to require healthcare services more frequently. Global demographic trends point to an expanding senior citizen population, suggesting significant growth potential in the health insurance industry. Market research firm Global Market Insights predicts the global health insurance market will compound by 5.5% annually for the next decade, going from $3 trillion in 2022 to surpass $5 trillion by 2032.
With its more than 22 million medical, dental, and vision plan members, analysts project that Humana (NYSE: HUM) will haul in over $103 billion in revenue in 2023. This could position the company as one of the biggest winners from the vigorous industry growth prospects. It also goes some way to explain why analysts predict that Humana's adjusted diluted EPS will increase by an average of 13.6% annually over the next five years. Up against the healthcare plans peer consensus of 11.7%, this is a solid growth outlook.
At a glance, Humana's 0.7% starting dividend yield seems minuscule. But with its above-average growth prospects and a dividend payout ratio positioned to be approximately 12% in 2023, the company's payout growth profile could balance out the lower starting income.
Humana isn't cheap in the traditional sense: Its forward P/E ratio of 15.5 is higher than the healthcare plans industry average forward P/E ratio of 13.9. But it is still a decent value for its superior growth potential. That is probably why analysts have assigned an average 12-month share price target of $583, which would provide a robust upside from the current $494 share price.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories: A balanced healthcare play Investors seeking a company with a multi-faceted presence within healthcare would do well to consider Abbott Laboratories (NYSE: ABT). Humana: A bet on rising health insurance demand As people age, they tend to require healthcare services more frequently. Global demographic trends point to an expanding senior citizen population, suggesting significant growth potential in the health insurance industry. | Abbott Laboratories: A balanced healthcare play Investors seeking a company with a multi-faceted presence within healthcare would do well to consider Abbott Laboratories (NYSE: ABT). To top it off, Abbott's valuation is cheap when you consider its reputation as a highly reliable dividend grower: The stock's forward price-to-earnings (P/E) ratio of 22.9 is below the medical devices industry peer average valuation multiple of 24.4. Market research firm Global Market Insights predicts the global health insurance market will compound by 5.5% annually for the next decade, going from $3 trillion in 2022 to surpass $5 trillion by 2032. | Abbott Laboratories: A balanced healthcare play Investors seeking a company with a multi-faceted presence within healthcare would do well to consider Abbott Laboratories (NYSE: ABT). To top it off, Abbott's valuation is cheap when you consider its reputation as a highly reliable dividend grower: The stock's forward price-to-earnings (P/E) ratio of 22.9 is below the medical devices industry peer average valuation multiple of 24.4. But with its above-average growth prospects and a dividend payout ratio positioned to be approximately 12% in 2023, the company's payout growth profile could balance out the lower starting income. | Abbott Laboratories: A balanced healthcare play Investors seeking a company with a multi-faceted presence within healthcare would do well to consider Abbott Laboratories (NYSE: ABT). Across its four business segments, the company posted $43.7 billion in sales during 2022. Given the current share price of around $105, Abbott looks like an intelligent buy for dividend growth investors. |
30801.0 | 2023-08-14 00:00:00 UTC | 2 Blue Chip Dividend Stocks That Are Top Buys in August | ABT | https://www.nasdaq.com/articles/2-blue-chip-dividend-stocks-that-are-top-buys-in-august | nan | nan | If you are looking for reliable dividend stocks that can provide steady income and growth in any market condition, you might want to consider these two blue chip companies that have proven their resilience and strength over time. Read on to find out more.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) is a global leader in healthcare products and services, with a diversified portfolio of medical devices, diagnostics, nutrition, and branded generic drugs. The company has a long history of innovation and excellence and has increased its dividend for 51 consecutive years.
In the second quarter of 2023, Abbott reported strong organic sales growth across three of its four operating segments, namely medical devices, established pharmaceuticals, and nutrition. During the quarter, the company benefited from the recovery in medical procedures after the pandemic-induced slowdown, the ongoing rebound in its infant formula business after last year's voluntary recall, and the robust demand for its continuous glucose monitoring franchise known as FreeStyle Libre.
However, the diversified healthcare company is facing the challenge of a significant decline in demand for COVID-19-related diagnostics. As a result, Abbott Laboratories' 2023 total Q2 sales decreased by nearly 15% compared to the same period a year ago. But Wall Street expects this temporary headwind to subside by 2024. To wit, Abbott is projected to return to mid-single-digit top-line growth as soon as next year.
Abbott pays a quarterly dividend of $0.51 per share, which translates to an annualized yield of 1.94% at current levels. That amount is modestly higher than the yield of the average S&P 500 (1.54%) listed stock. Its dividend is also well covered by earnings. Underscoring this point, Abbott's trailing-12-month payout ratio presently stands at 66.8%, which is relatively low for its peer group.
The one knock against Abbott is that its stock trades at almost 24 times projected earnings, which qualifies as a premium valuation for a large-cap healthcare stock. The company's strong fundamentals, improving outlook, and top-shelf dividend program, however, are arguably worth the price of admission.
2. Bristol Myers Squibb
Bristol Myers Squibb (NYSE: BMY), or BMS for short, is a global biopharmaceutical company that develops and markets innovative therapies for various diseases, such as cancer, cardiovascular, immunology, and neuroscience. The company has a robust portfolio of high-value medicines, such as Opdivo, Eliquis, Revlimid, and Zeposia, as well as several promising candidates in advanced stages of development, such as cardiovascular drug milvexian, hematology drug iberdomide, and pulmonary fibrosis treatment LPA1.
The drugmaker pays an annualized dividend of 3.72% at current levels, which is a fairly generous payout for a large-cap pharma stock. Its dividend is also well supported by earnings, evinced by its trailing-12-month payout ratio of approximately 59.8%.
The caveat with this stock is that the company is heading into a period of marked portfolio churn, with top performers like Opdivo and Eliquis poised to lose patent protection later on in the decade. Fortunately, BMS also happens to sport one of the deepest and most robust clinical pipelines in the industry, which should help it overcome these patent expirations.
What's the bottom line? BMS is a classic buy-and-hold vehicle. The company isn't expected to deliver market-beating returns in the near term due to these patent headwinds. But BMS' first-class innovation engine, superb capital allocation strategy, and proven commitment to paying a top-tier dividend all bode well for its long-term prospects. Long story short, BMS stock should generate impressive returns for investors with a 10- to 20-year horizon, given its attractive dividend yield and intriguing deep value proposition.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories and Bristol Myers Squibb. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a global leader in healthcare products and services, with a diversified portfolio of medical devices, diagnostics, nutrition, and branded generic drugs. If you are looking for reliable dividend stocks that can provide steady income and growth in any market condition, you might want to consider these two blue chip companies that have proven their resilience and strength over time. During the quarter, the company benefited from the recovery in medical procedures after the pandemic-induced slowdown, the ongoing rebound in its infant formula business after last year's voluntary recall, and the robust demand for its continuous glucose monitoring franchise known as FreeStyle Libre. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a global leader in healthcare products and services, with a diversified portfolio of medical devices, diagnostics, nutrition, and branded generic drugs. Bristol Myers Squibb Bristol Myers Squibb (NYSE: BMY), or BMS for short, is a global biopharmaceutical company that develops and markets innovative therapies for various diseases, such as cancer, cardiovascular, immunology, and neuroscience. The Motley Fool has positions in and recommends Abbott Laboratories and Bristol Myers Squibb. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a global leader in healthcare products and services, with a diversified portfolio of medical devices, diagnostics, nutrition, and branded generic drugs. The one knock against Abbott is that its stock trades at almost 24 times projected earnings, which qualifies as a premium valuation for a large-cap healthcare stock. 10 stocks we like better than Abbott Laboratories When our analyst team has a stock tip, it can pay to listen. | Abbott Laboratories Abbott Laboratories (NYSE: ABT) is a global leader in healthcare products and services, with a diversified portfolio of medical devices, diagnostics, nutrition, and branded generic drugs. The one knock against Abbott is that its stock trades at almost 24 times projected earnings, which qualifies as a premium valuation for a large-cap healthcare stock. The Motley Fool has positions in and recommends Abbott Laboratories and Bristol Myers Squibb. |
30802.0 | 2023-08-14 00:00:00 UTC | Abbott (ABT) EPD Arm Grows, Low Testing Sales Play Spoilsport | ABT | https://www.nasdaq.com/articles/abbott-abt-epd-arm-grows-low-testing-sales-play-spoilsport | nan | nan | Abbott’s ABT branded generics and international diabetes businesses continue to drive growth for the company. Yet, the business environment continues to be challenging. The stock carries a Zacks Rank #3 (Hold).
Shares of Abbott have outperformed the industry over the past year. The stock has lost 5.8% compared with the industry’s 7.3% decline.
Abbott is expanding its Diagnostics business foothold (consisting of nearly 30% of the company’s total revenues in the second quarter of 2023). Although, over the past few quarters, there has been a decline in demand for Abbott’s rapid diagnostic tests to detect COVID-19, it is largely being offset by higher growth across other businesses. Particularly, in the United States and Europe, Abbott is experiencing increased demand for routine diagnostic testing.
Further, Abbott’s Established Pharmaceuticals Division (EPD) business operates solely in emerging geographies, with leading positions in many of the largest and fastest-growing pharmaceutical markets for branded generics in the world. These markets include India, Russia, China and Latin America. The company recently noted that banking on the successful execution of its Branded Generic operating model, EPD is well positioned for sustained growth in many of these growing pharmaceutical markets.
Abbott Laboratories Price
Abbott Laboratories price | Abbott Laboratories Quote
Following the massive setback related to the voluntary recall and production stoppage of certain infant powder formula products manufactured at its facility in Sturgis, MI last year, Abbott’s Nutrition business has started showing signs of recovery since the beginning of 2023. Per the last update on the second-quarterearnings call the company has made good progress in increasing manufacturing production. It has now recovered approximately 75% of the market share in the infant formula business. Adult nutrition is also gaining momentum, backed by the strong global sales performance of Abbott's complete and balanced nutrition brand, Ensure.
On the flip side, during the COVID-19 public health emergency, Abbott’s diagnostic tests witnessed stupendous revenue growth backed by increasing demand for testing as well as government-enacted favorable policies to expedite or promote access to healthcare in order to slow down or stop the spread of the virus. However, through the last few months of 2022 and following the official ending of the public health emergency in May, Abbott experienced a continuous decline in COVID testing-related demand.
Meanwhile, Abbott, while trying to expand its nutrition business in emerging markets, is facing weakness in Greater China on challenging market dynamics. Especially in pediatric nutrition, the company is apprehensive about the new food safety regulations and a consequent oversupply of products in the market. Accordingly, in December 2022, Abbott initiated steps to exit its pediatric nutrition business in China. The withdrawal of business from the Chinese market, which holds a significant share of Abbott’s pediatric nutrition sales, is going to significantly impact Abbott’s overall Nutrition business in the coming period.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics HAE, DexCom DXCM and Intuitive Surgical ISRG. Haemonetics sports a Zacks Rank #1 (Strong Buy), while DexCom and Intuitive Surgical carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ tock has risen 23.7% in the past year. Earnings estimates for Haemoneticshave increased from $3.56 to $3.58 for 2023 and from $3.96 to $3.98 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.32%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for DexCom’s 2023 earnings per share have increased from $1.07 to $1.19 in the past 30 days. Shares of the company have risen 26% in the past year against the industry’s fall of 3.7%.
DXCM earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 28.83%. In the last reported quarter, it posted an earnings surprise of 54.55%.
Estimates for Intuitive Surgical’s 2023 earnings per share have increased from $5.47 to $5.56 in the past 30 days. Shares of the company have risen 29% in the past year against the industry’s fall of 3.8%.
ISRG’s earnings beat estimates in three of the trailing four quarters and missed the same in one, the average surprise being 4.19%. In the last reported quarter, Intuitive Surgical delivered an earnings surprise of 7.58%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott’s ABT branded generics and international diabetes businesses continue to drive growth for the company. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report To read this article on Zacks.com click here. Although, over the past few quarters, there has been a decline in demand for Abbott’s rapid diagnostic tests to detect COVID-19, it is largely being offset by higher growth across other businesses. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott’s ABT branded generics and international diabetes businesses continue to drive growth for the company. On the flip side, during the COVID-19 public health emergency, Abbott’s diagnostic tests witnessed stupendous revenue growth backed by increasing demand for testing as well as government-enacted favorable policies to expedite or promote access to healthcare in order to slow down or stop the spread of the virus. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott’s ABT branded generics and international diabetes businesses continue to drive growth for the company. Abbott Laboratories Price Abbott Laboratories price | Abbott Laboratories Quote Following the massive setback related to the voluntary recall and production stoppage of certain infant powder formula products manufactured at its facility in Sturgis, MI last year, Abbott’s Nutrition business has started showing signs of recovery since the beginning of 2023. | Abbott’s ABT branded generics and international diabetes businesses continue to drive growth for the company. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, Abbott, while trying to expand its nutrition business in emerging markets, is facing weakness in Greater China on challenging market dynamics. |
30803.0 | 2023-08-11 00:00:00 UTC | Asensus Surgical (ASXC) Q2 Loss Widens, Revenues In Line | ABT | https://www.nasdaq.com/articles/asensus-surgical-asxc-q2-loss-widens-revenues-in-line | nan | nan | Asensus Surgical, Inc. ASXC reported second-quarter 2023 loss per share of 9 cents, wider than the Zacks Consensus Estimate of a loss per share 8 cents as well as the year-ago adjusted loss of 7 cents per share.
GAAP EPS in the year-ago quarter was 8 cents. The year-ago adjustment included certain amortization expenses.
Revenues in Detail
Asensus Surgical registered revenues of $1.08 million in the reported quarter, up 8.8% year over year. The figure matched the Zacks Consensus Estimate.
Quarter in Details
ASXC recorded Product revenues of $298 thousands in the second quarter, reflecting a 17.3% rise year over year. Service revenues were $289 thousands, down 31.8% year over year. Lease revenues were $494 thousands, marking a 56.3% surge year over year.
During the second quarter, there was a 27% increase in total surgical procedures completed, utilizing the Senhance System compared to the year-ago period. The main drivers of this expansion were consistent utilization patterns brought on by an increased installed base, an increase of new surgeon users at existing installations and a broader market recovery.
Asensus Surgical, Inc. Price, Consensus and EPS Surprise
Asensus Surgical, Inc. price-consensus-eps-surprise-chart | Asensus Surgical, Inc. Quote
Margin Trend
In the reported quarter, Asensus Surgical reported a gross loss of $1.9 million, wider than the year-ago loss of $1.4 million. Total cost of revenues soared 30.9% in the second quarter.
Selling, general and administrative expenses rose 23.5% to $4.4 million. Research and development expenses totaled $8.9 million, up 23.8% year over year. General and administrative expenses of $5.1 million rose 2.6% year over year.
Adjusted operating expenses were $18.6 million, up 17.1% from the figure recorded in the prior-year quarter.
Adjusted operating loss was $20.5 million compared with the prior-year quarter’s loss of $15.8 million.
Financial Update
Asensus Surgical exited second-quarter 2023 with cash and cash equivalents and short-term investments, available-for-sale of $39.9 million compared with the 2022-end record of $70.5 million.
Our Take
Asensus Surgical exited the second quarter of 2023 with earnings miss and in-line revenues. While escalating costs and expenses are weighing on the profitability of the business, the company is optimistic about the upcoming 2023 milestones.
The company noted that during the second half of 2023, it expects to achieve complete integrated system testing for LUNA Surgical System, finalize manufacturing strategy for LUNA Surgical System, initiate preclinical evaluation for LUNA Surgical System, finalize strategic relationship with a graphics hardware provider and establish pilot manufacturing for the updated Intelligent Surgical Unit platform.
According to the company, LUNA System development has made notable progress in R&D and is now transitioning to testing and evaluation before regulatory filings.
Zacks Rank and Stocks to Consider
Currently, Asensus Surgical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Asensus Surgical, Inc. (ASXC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Asensus Surgical, Inc. (ASXC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Asensus Surgical, Inc. (ASXC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Asensus Surgical, Inc. (ASXC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30804.0 | 2023-08-11 00:00:00 UTC | Peter Lynch Detailed Fundamental Analysis - ABT | ABT | https://www.nasdaq.com/articles/peter-lynch-detailed-fundamental-analysis-abt-3 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
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About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. |
30805.0 | 2023-08-11 00:00:00 UTC | National Vision (EYE) Q2 Earnings Top Estimates, Margins Down | ABT | https://www.nasdaq.com/articles/national-vision-eye-q2-earnings-top-estimates-margins-down | nan | nan | National Vision Holdings, Inc. EYE delivered adjusted earnings per share (EPS) of 17 cents in the second quarter of 2023, down 19% year over year. However, the figure topped the Zacks Consensus Estimate by 13.3%.
The adjustment excludes the impact of certain non-recurring charges like stock compensation expenses, asset impairment and the amortization of acquisition intangibles, among others.
GAAP EPS in the quarter was 7 cents, marking a decline of 41.7% from the prior-year figure.
Revenues in Detail
Revenues in the second quarter totaled $525.3 million, surpassing the Zacks Consensus Estimate by 0.03%. The top line rose 3.1% from the year-ago quarter’s number, led by growth from new store sales and an increase in adjusted comparable store sales growth.
Net revenues were negatively impacted by 0.2% due to the timing of unearned revenues in the quarter under review.
National Vision Holdings, Inc. Price, Consensus and EPS Surprise
National Vision Holdings, Inc. price-consensus-eps-surprise-chart | National Vision Holdings, Inc. Quote
In the second quarter, comparable store sales declined 0.1%. Adjusted comparable store sales growth was 1%. National Vision opened 24 new stores (21 new America's Best and three Eyeglass World) to reach a store count of 1,381 at the end of the quarter. Overall, the store count rose 5.1% year over year.
Segment Analysis
National Vision provides its principal products and services through two reportable segments — Owned & Host and Legacy.
The Owned & Host segment reported revenues of $418.8 million, up 4.9% year over year. Our model projected the segment’s revenues to improve 4.4%.
Revenues from the Legacy segment increased 1.7% year over year to $38.5 million. The metric fell behind our model’s projected improvement of 16%.
The Corporate/Other category (comprising the results of other operating segments, AC Lens and FirstSight, as well as corporate overhead support) reported a 2.3% increase in revenues of $63.3 million. Our model’s projected improvement was 7.4%.
Margins
The gross profit in the reported quarter was $277.5 million, up 0.9% from the prior-year quarter’s levels. The gross margin of 52.8% contracted 114 basis points (bps).
SG&A expenses rose 7.1% to $243.9 million. The adjusted operating margin was 6.4% contracted 287 bps year over year.
Financial Position
National Vision exited the second quarter of 2023 with cash and cash equivalents of $254.6 million compared with $299.4 million as of Dec 31, 2022.
The cumulative net cash flow from operating activities at the end of the quarter was $112.2 million compared with $88 million a year ago.
2023 Outlook
National Vision reiterated its full-year 2023 guidance, which it originally announced on the fourth-quarter 2022 earnings call.
For 2023, net revenues are expected in the range of $2.08-$2.14 billion (unchanged from the previous outlook). The Zacks Consensus Estimate for the metric is currently pegged at $2.12 billion.
Adjusted EPS is estimated in the band of 42-60 cents (unchanged). The Zacks Consensus Estimate for the same is currently pegged at 55 cents.
Adjusted comparable store sales are expected in the range of 0%-3% (unchanged).
Our Take
National Vision reported second-quarter 2023 results with better-than-expected earnings and revenues. The performance reflected strength in the managed care business as well as progress made in terms of expanding exam capacity through enhanced optometrist retention and recruitment efforts. Adjusted comparable store sales growth was driven by an increase in the average ticket and customer transactions.
Last month, National Vision announced the termination of the Walmart partnership in 2024, positioning the company to emphasize core strategic initiatives to grow its freestanding brands — America’s Best and Eyeglass World. Planned new store openings of around 65-70 this year remain well on track.
Meanwhile, the year-over-year decline in the bottom line does not bode well for the company. A contraction of both margins is worrisome. Higher SG&A expenses in the quarter reflected increases in performance-based incentives and stock-based compensations, payroll and occupancy expenses.
Zacks Rank and Key Picks
National Vision currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
National Vision Holdings, Inc. (EYE) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report National Vision Holdings, Inc. (EYE) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report National Vision Holdings, Inc. (EYE) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report National Vision Holdings, Inc. (EYE) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report National Vision Holdings, Inc. (EYE) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30806.0 | 2023-08-11 00:00:00 UTC | The Zacks Analyst Blog Highlights JPMorgan Chase, Salesforce, Abbott Laboratories, HCA Healthcare and General Motors | ABT | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-jpmorgan-chase-salesforce-abbott-laboratories-hca | nan | nan | For Immediate Release
Chicago, IL – August 11, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Salesforce, Inc. CRM, Abbott Laboratories ABT, HCA Healthcare, Inc. HCA and General Motors Co. GM.
Here are highlights from Thursday’s Analyst Blog:
Top Stock Reports for JPMorgan, Salesforce and Abbott Labs
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including JPMorgan Chase & Co., Salesforce, Inc. and Abbott Laboratories. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of JPMorgan Chase have outperformed the Zacks Banks - Major Regional industry over the past year (+32.0% vs. -1.3%). The company acquired failed First Republic Bank for $10.6 billion, which is expected to be accretive to earnings. The deal adds almost $173 billion in loans and will increase market share among wealthy clients.
Higher rates, global expansion initiatives and a decent loan demand will support net interest income (NII). Moreover, supported by solid earnings strength, the company will be able to sustain enhanced capital deployments.
Yet, the volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging. The Zacks analyst expects non-interest income (managed) to fall 2.1% in 2023. Mounting expenses pose a major headwind, and we anticipate the same to rise 10.4% in 2023.
(You can read the full research report on JPMorgan Chase here >>>)
Shares of Salesforce have outperformed the Zacks Computer - Software industry over the year-to-date period (+55.2% vs. +35.8%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line.
Continued deal wins in the international market is another growth driver. The acquisition of Slack has positioned the company as a leader in enterprise team collaboration solution space and placed at a better competitive position against Microsoft’s Teams product.
However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects in the near-term.
(You can read the full research report on Salesforce here >>>)
Shares of Abbott Laboratories have declined -2.0% over the past six months against the Zacks Medical - Products industry’s decline of -2.9%. The company is facing steep year-over-year decline in COVID testing-related sales hurt growth. Further, the decision to exit the pediatric nutrition business in China might impede overall growth in the coming period.
Nevertheless, Abbott is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within the EPD business, which is solely based in emerging markets. Within Core Diagnostics, Abbott is gaining market share following the end of the public health emergency, particularly in the United States and Europe region.
Within Diabetes Care, Abbott is scaling up the production of Libre and gaining reimbursement approval in several countries. Innovations and market expansion efforts are helping it offset the impact of inflation and supply disruptions.
(You can read the full research report on Abbott Laboratories here >>>)
Other noteworthy reports we are featuring today include HCA Healthcare, Inc. and General Motors.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Salesforce, Inc. CRM, Abbott Laboratories ABT, HCA Healthcare, Inc. HCA and General Motors Co. GM. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. | Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Salesforce, Inc. CRM, Abbott Laboratories ABT, HCA Healthcare, Inc. HCA and General Motors Co. GM. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including JPMorgan Chase & Co., Salesforce, Inc. and Abbott Laboratories. | Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Salesforce, Inc. CRM, Abbott Laboratories ABT, HCA Healthcare, Inc. HCA and General Motors Co. GM. Here are highlights from Thursday’s Analyst Blog: Top Stock Reports for JPMorgan, Salesforce and Abbott Labs The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: JPMorgan Chase & Co. JPM, Salesforce, Inc. CRM, Abbott Laboratories ABT, HCA Healthcare, Inc. HCA and General Motors Co. GM. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of JPMorgan Chase have outperformed the Zacks Banks - Major Regional industry over the past year (+32.0% vs. -1.3%). |
30807.0 | 2023-08-10 00:00:00 UTC | Top Stock Reports for JPMorgan Chase, Salesforce & Abbott Laboratories | ABT | https://www.nasdaq.com/articles/top-stock-reports-for-jpmorgan-chase-salesforce-abbott-laboratories | nan | nan | Thursday, August 10, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including JPMorgan Chase & Co. (JPM), Salesforce, Inc. (CRM) and Abbott Laboratories (ABT). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of JPMorgan Chase have outperformed the Zacks Banks - Major Regional industry over the past year (+32.0% vs. -1.3%). The company acquired failed First Republic Bank for $10.6 billion, which is expected to be accretive to earnings. The deal adds almost $173 billion in loans and will increase market share among wealthy clients.
Higher rates, global expansion initiatives and a decent loan demand will support net interest income (NII). Moreover, supported by solid earnings strength, the company will be able to sustain enhanced capital deployments.
Yet, the volatile nature of the capital markets business and higher mortgage rates are likely to make fee income growth challenging. The Zacks analyst expects non-interest income (managed) to fall 2.1% in 2023. Mounting expenses pose a major headwind, and we anticipate the same to rise 10.4% in 2023.
(You can read the full research report on JPMorgan Chase here >>>)
Shares of Salesforce have outperformed the Zacks Computer - Software industry over the year-to-date period (+55.2% vs. +35.8%). The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Its sustained focus on introducing more aligned products as per customer needs is driving its top-line.
Continued deal wins in the international market is another growth driver. The acquisition of Slack has positioned the company as a leader in enterprise team collaboration solution space and placed at a better competitive position against Microsoft’s Teams product.
However, stiff competition and unfavorable currency fluctuations are concerns. Besides, challenging macroeconomic environment might hurt its growth prospects in the near-term.
(You can read the full research report on Salesforce here >>>)
Shares of Abbott Laboratories have declined -2.0% over the past six months against the Zacks Medical - Products industry’s decline of -2.9%. The company is facing steep year-over-year decline in COVID testing-related sales hurt growth. Further, the decision to exit the pediatric nutrition business in China might impede overall growth in the coming period.
Nevertheless, Abbott is strategically expanding its global presence to address the unmet demand for advanced medical technologies. Within the EPD business, which is solely based in emerging markets. Within Core Diagnostics, Abbott is gaining market share following the end of the public health emergency, particularly in the United States and Europe region.
Within Diabetes Care, Abbott is scaling up the production of Libre and gaining reimbursement approval in several countries. Innovations and market expansion efforts are helping it offset the impact of inflation and supply disruptions.
(You can read the full research report on Abbott Laboratories here >>>)
Other noteworthy reports we are featuring today include Morgan Stanley (MS), HCA Healthcare, Inc. (HCA) and General Motors Company (GM).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Acquisitions, High Rates Aid JPMorgan (JPM), Fee Income Hurt
Salesforce (CRM) Rides on Portfolio Strength and Buyouts
Organic Sales Gain, Growing EPD Business Aid Abbott (ABT)
Featured Reports
Buyouts Support Morgan Stanley (MS), Capital Markets A Woe
Per the Zacks analyst, acquisitions with an aim to be less capital-markets dependent, high rates and solid balance sheet aid Morgan Stanley. Yet, capital markets ambiguity and rising costs are woes.
Improving Top Line, Acquisitions Aid HCA Healthcare (HCA)
Per the Zacks analyst, its growing revenues driven by increasing admissions have led to significant growth. Strategic acquisitions have helped it expand and remain a driving factor.
Robust Snacks Business Aids Kellogg (K), High Costs a Woe
Per the Zacks analyst, Kellogg has been benefiting from strength in its world-class snack brands. However, the company has been grappling with rising input cost inflation.
Cloudflare (NET) Rides on Product Strength, Acquisitions
Per the Zacks analyst, Cloudflare is gaining from solid contributions of its growth-oriented products, primarily Cloudflare One platform. Strategic buyouts like Area 1 and Vectrix are a positive.
Investments, Appalachian Assets Aid National Fuel Gas (NFG)
Per the Zacks analyst, National Fuel Gas' systematic investment to further strengthen its midstream operations and strong presence in the Appalachian region will boost its performance.
Oceaneering (OII) to Gain from Offshore Expertise
The Zacks analyst likes Oceaneering International's impressive portfolio of equipment for the deep-water projects and the company's exposure to all the phases of the offshore oilfield lifecycle.
Diversified Business aid Charles River (CRAI) Amid Liquidity Woes
Per the Zacks analyst, Charles River's top line is aided by a diversified business with service offerings across areas of functional expertise and geographical regions. Low liquidity remains a concern
New Upgrades
General Motors (GM) Rides on Strong Liquidity & EV Push
General Motors' solid automotive liquidity of around $39 billion (as of Jun 30, 2023) and ambitious electrification goals have made the Zacks analyst bullish on the stock.
Fluor (FLR) Banks on Energy Solutions Business Prospect
Per the Zacks analyst, strong contributions from the Energy Solutions and Urban Solutions segments benefits Fluor.
Model N (MODN) Rides on Healthy Traction for Cloud Solutions
Per the Zacks analyst, Model N is likely to benefit from solid momentum in the Subscription business induced by rising demand for cloud-based solutions and growth in Professional Services.
New Downgrades
Lower Volumes, Supply Shortages Ail Avery Dennison (AVY)
Per the Zacks analyst, lower volumes due to ongoing apparel inventory reductions is denting Avery Dennison's results. Elevated costs and supply chain challenges are also concerning.
Cautious Spending, Bumpy China Recovery Ail Seagate (STX)
Per the Zacks analyst, Seagate's performance is likely to remain under pressure owing to bumpy economic recovery in China, cautious enterprise spending and continued inventory digestion by clients.
Concentration on Several Basins to Affect Ovintiv (OVV)
The Zacks analyst thinks that Ovintiv might benefit from focusing more on its core business by selling off some of its non-core acreage.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Morgan Stanley (MS) : Free Stock Analysis Report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Salesforce Inc. (CRM) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Acquisitions, High Rates Aid JPMorgan (JPM), Fee Income Hurt Salesforce (CRM) Rides on Portfolio Strength and Buyouts Organic Sales Gain, Growing EPD Business Aid Abbott (ABT) Featured Reports Buyouts Support Morgan Stanley (MS), Capital Markets A Woe Per the Zacks analyst, acquisitions with an aim to be less capital-markets dependent, high rates and solid balance sheet aid Morgan Stanley. Today's Research Daily features new research reports on 16 major stocks, including JPMorgan Chase & Co. (JPM), Salesforce, Inc. (CRM) and Abbott Laboratories (ABT). Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Today's Research Daily features new research reports on 16 major stocks, including JPMorgan Chase & Co. (JPM), Salesforce, Inc. (CRM) and Abbott Laboratories (ABT). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Acquisitions, High Rates Aid JPMorgan (JPM), Fee Income Hurt Salesforce (CRM) Rides on Portfolio Strength and Buyouts Organic Sales Gain, Growing EPD Business Aid Abbott (ABT) Featured Reports Buyouts Support Morgan Stanley (MS), Capital Markets A Woe Per the Zacks analyst, acquisitions with an aim to be less capital-markets dependent, high rates and solid balance sheet aid Morgan Stanley. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Today's Research Daily features new research reports on 16 major stocks, including JPMorgan Chase & Co. (JPM), Salesforce, Inc. (CRM) and Abbott Laboratories (ABT). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Acquisitions, High Rates Aid JPMorgan (JPM), Fee Income Hurt Salesforce (CRM) Rides on Portfolio Strength and Buyouts Organic Sales Gain, Growing EPD Business Aid Abbott (ABT) Featured Reports Buyouts Support Morgan Stanley (MS), Capital Markets A Woe Per the Zacks analyst, acquisitions with an aim to be less capital-markets dependent, high rates and solid balance sheet aid Morgan Stanley. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Acquisitions, High Rates Aid JPMorgan (JPM), Fee Income Hurt Salesforce (CRM) Rides on Portfolio Strength and Buyouts Organic Sales Gain, Growing EPD Business Aid Abbott (ABT) Featured Reports Buyouts Support Morgan Stanley (MS), Capital Markets A Woe Per the Zacks analyst, acquisitions with an aim to be less capital-markets dependent, high rates and solid balance sheet aid Morgan Stanley. Today's Research Daily features new research reports on 16 major stocks, including JPMorgan Chase & Co. (JPM), Salesforce, Inc. (CRM) and Abbott Laboratories (ABT). Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Morgan Stanley (MS) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30808.0 | 2023-08-09 00:00:00 UTC | QIAGEN (QGEN) Q2 Earnings and Revenues Top, '23 View Slashed | ABT | https://www.nasdaq.com/articles/qiagen-qgen-q2-earnings-and-revenues-top-23-view-slashed | nan | nan | QIAGEN N.V.’s QGEN second-quarter 2023 adjusted earnings per share (EPS) were 51 cents (52 cents at a constant exchange rate or CER), in line with the prior-year period. The figure surpassed the Zacks Consensus Estimate by a penny.
The adjustment excludes the impact of certain non-recurring items like business integration, acquisition and restructuring-related expenses, purchased intangible amortization expenses and non-cash interest expense charges, among others.
The GAAP EPS for the quarter was 35 cents, down 16.7% year over year.
Revenues in Detail
Net sales in the second quarter fell 4% year over year to $494.9 million (down 4% at CER). However, the top line beat the Zacks Consensus Estimate by 0.2%. Sales at CER were $497 million, ahead of the outlook of at least $490 million.
Second-quarter sales were driven by 9% CER growth in the non-COVID-19 portfolio to $457 million as well as 10% CER sales growth in recurring consumables and related revenues.
QIAGEN N.V. Price, Consensus and EPS Surprise
QIAGEN N.V. price-consensus-eps-surprise-chart | QIAGEN N.V. Quote
Geographical Revenue Analysis
In the quarter under review, sales from the Americas (53% of sales) totaled $263 million, up 4% year over year (up 4% at CER). Our model projected a year-over-year decline of 2.9% in this region.
The CER improvement was led by higher sales in the United States and from QuantiFERON-TB, which outweighed reduced pandemic sales. CER sales growth in the non-COVID-19 portfolio was supported by gains in the United States, Brazil and Mexico compared to the year-ago period.
Revenues from Europe, the Middle East and Africa (31% of sales) fell 6.2% reportedly (down 7% at CER) to $151 million. This was wider than our model’s projected decline of 1.6%.
The overall CER sales decline resulted from a higher level of pandemic testing demand in the second quarter of 2022.
Revenues from Asia-Pacific/Japan (16% of sales) fell 20.6% year over year on a reported basis (down 17% at CER) to $81 million. Our model’s projection was a decline of 11.6%.
Per the company, overall sales in this region were significantly down compared with very strong results in the prior-year quarter.
Segmental Details
As of the second quarter of 2023, QIAGEN had two major customer classes — Molecular Diagnostics and Life Sciences.
Molecular Diagnostics’ (representing 52.5% of net sales) revenues were up 2% on a reported basis (up 2% at CER) to $260 million. Our model projected a year-over-year decline of 1% from this segment.
Life Sciences (47.5% of total revenues) reported revenues of $235 million, down 10% on a reported basis (down 9% at CER). Our model’s projection was a decline of 7.4%.
Operational Update
The adjusted gross profit (excluding the amortization of acquisition-related intangibles) in the quarter under review fell 5.2% to $328.2 million.
Meanwhile, the adjusted gross margin contracted 82 basis points (bps) to 66.3% despite a 1.6% decline in the cost of sales (excluding amortization) to $166.6 million.
Sales and marketing expenses of QIAGEN fell 2.2% year over year to $116.3 million. R&D expenses of $49.9 million were almost similar to the prior year’s quarter. G&A expenses fell 10.3% year over year to $29 million.
The adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring and integration and others) declined 8.3% year over year to $132.8 million in the second quarter. Meanwhile, the adjusted operating margin contracted 126 bps to 26.8%.
Financial Update
QIAGEN exited the second quarter of 2023 with cash and cash equivalents and short-term investments of $1.33 billion compared with $1.42 billion as of Dec 31, 2022. The long-term debt was $1.39 billion at the end of the second quarter of 2023 compared with $1.47 billion at the end of 2022.
The cumulative net cash provided by operating activities at the end of the second quarter was $183.4 million compared with $379.4 million in the year-ago period.
Guidance
QIAGEN provided revised guidance for 2023.
Full-year net sales are expected to be nearly $1.97 billion at CER compared with the previously issued guidance of at least $2.05 billion. The reduced outlook considers the significant drop in COVID-19 test demand and volatility in large-scale customer bulk orders in the OEM (Original Equipment Manufacturer) business, which impacts both COVID-19 and non-COVID-19 sales results.
Sales growth from non-COVID-19 product groups is now expected to be at least 8% at CER (previously double-digit CER sales growth), driven by ongoing solid consumables demand across the portfolio.
The Zacks Consensus Estimate for 2023 revenues is pegged at $2.04 billion.
The adjusted EPS for 2023 is expected at about $2.07 at CER, down from the earlier outlook of at least $2.10 at CER. The Zacks Consensus Estimate for adjusted EPS is pegged at $2.11.
For the third quarter of 2023, the company expects net sales of at least $465 million at CER. The Zacks Consensus Estimate for the same is pegged at $519.5 million.
The adjusted EPS is expected to be at least 48 cents at CER. The Zacks Consensus Estimate for the adjusted EPS is pegged at 53 cents.
Our Take
QIAGEN ended the second quarter of 2023 with earnings and revenues beating by a narrow margin. The QIAGEN Digital Insights business drove performance in the second quarter with more than 20% CER sales growth. QuantiFERON-TB test quarterly sales exceeded $100 million for the first time, fueled by the ongoing conversion of latent TB testing in all regions from the traditional skin test.
CER growth in the consumable portfolio, with high recurring revenues across all customer classes, appears promising. Amid an uncertain macro environment and a significant reduction in COVID-19 testing, QIAGEN delivered the top and bottom lines ahead of the outlook (CER net sales of at least $490 million and adjusted EPS of at least $0.50 CER) in the quarter under review. This is likely to bode well for the stock.
Meanwhile, both margins contracted in the quarter despite a decline in expenses. Reduced guidance for the full year is discouraging.
Zacks Rank and Key Picks
QIAGEN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report QIAGEN N.V. (QGEN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report QIAGEN N.V. (QGEN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report QIAGEN N.V. (QGEN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report QIAGEN N.V. (QGEN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30809.0 | 2023-08-09 00:00:00 UTC | SmileDirectClub (SDC) Q2 Earnings Miss Estimates, '23 View Up | ABT | https://www.nasdaq.com/articles/smiledirectclub-sdc-q2-earnings-miss-estimates-23-view-up | nan | nan | SmileDirectClub, Inc. SDC reported a loss of 13 cents in the second quarter of 2023, narrower than the year-ago quarter’s loss of 17 cents. However, the reported figure was wider than the Zacks Consensus Estimate of a loss of 12 cents.
Revenues
Total revenues in the second quarter were $101.8 million, down 19.1% year over year. The figure missed the Zacks Consensus Estimate by 1.5%.
In the second quarter, the company shipped 46,774 unique aligner orders, down 21.6% sequentially. The quarter’s average aligner gross sales price came in at $1,976, up 1.4% on a sequential basis.
SmileDirectClub, Inc. Price, Consensus and EPS Surprise
SmileDirectClub, Inc. price-consensus-eps-surprise-chart | SmileDirectClub, Inc. Quote
Net revenues (related to retainers, whitening and other ancillary products) came in at $94.7 million, down 18.9% from the year-ago quarter’s levels. Our model projected a year-over-year decline of 22.5%.
Financing revenues (interests associated with the SmilePay program) in the reported quarter were $7.1 million, down 21.1% from the year-ago quarter’s levels. Our model estimated revenues to decline 5.9%.
Margins
The gross profit in the reported quarter was $72.9 million, down 20.5% from the prior-year quarter’s levels. The gross margin of 71.6% contracted 129 basis points (bps), driven by the deleveraging of fixed expenses on lower aligner volumes.
Marketing and selling expenses decreased 30.3% to $49.6 million. General and administrative expenses were $60 million, down 17.4% year over year. The company incurred an adjusted operating loss of $36.5 million in the quarter compared with the operating loss of $51.8 million in the year-ago quarter.
Financial Update
SmileDirectClub exited the second quarter of 2023 with cash and cash equivalents of $28.9 million compared with $93.1 million as of Dec 31, 2022.
The long-term debt (net of the current portion) at the end of the second quarter was $863.4 million compared with $849.4 million at the end of the fourth quarter of 2022.
The cumulative net cash used in operating activities at the end of the second quarter of 2023 was $50.4 million compared with $79.1 million in the year-ago period.
2023 Guidance
SmileDirectClub provided an updated outlook for 2023.
Total revenues from the core business are now expected in the range of $425-$475 million compared with the previously issued guidance in the band of $400-$450 million. The revised outlook includes contributions from the 2023 rollout of the SmileMaker Platform in the United States and the launch of the CarePlus solution. The Zacks Consensus Estimate for the same is pegged at $433.9 million.
The gross margin (as a percentage of total revenues) is expected in the range of 73%-76% (previously 72%-75%) for the full year.
Our Take
SmileDirectClub exited the second quarter of 2023 with both earnings and revenues missing estimates. The year-over-year decline in revenues was due to persistent macroeconomic headwinds, while the sequential decrease followed the typical seasonal trend from the first quarter to the second quarter.
A contraction of both margins does not bode well for the stock. Constraints related to consumer spending and sustained high inflation are likely to dent the overall demand in 2023 for SDC’s core business.
Meanwhile, the financial discipline demonstrated by the company resulted in the improvement of the bottom line amid challenging revenue trends. The raised revenue and gross margin guidance for the full year buoys optimism.
During the quarter, SDC launched the AI-powered SmileMaker Platform in the United States. The broader rollout of the CarePlus premium service offering is also expected by the end of August 2023.
Zacks Rank and Other Key Picks
SmileDirectClub currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of #2, reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
SmileDirectClub, Inc. (SDC) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report SmileDirectClub, Inc. (SDC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report SmileDirectClub, Inc. (SDC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report SmileDirectClub, Inc. (SDC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report SmileDirectClub, Inc. (SDC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30810.0 | 2023-08-09 00:00:00 UTC | Charles River (CRL) Q2 Earnings Top, 2023 View Narrowed | ABT | https://www.nasdaq.com/articles/charles-river-crl-q2-earnings-top-2023-view-narrowed | nan | nan | Charles River Laboratories International, Inc. CRL reported adjusted earnings per share (EPS) of $2.69 for second-quarter 2023, reflecting a 2.9% decline from the year-ago earnings. The metric however surpassed the Zacks Consensus Estimate by 2.3%.
On a GAAP basis, earnings declined 11.3% year over year to $1.89 per share.
The year-over-year decline was primarily due to non-operating items, including increased interest expense and a higher tax rate as well as the impact of the Avian Vaccine divestiture.
Revenues
Revenues in the second quarter totaled $1.06 billion, beating the Zacks Consensus Estimate by 1%. The top line improved 8.9% from the year-ago number (up 11.2% organically, excluding the impact of acquisition, divestiture and foreign currency translation).
Charles River Laboratories International, Inc. Price, Consensus and EPS Surprise
Charles River Laboratories International, Inc. price-consensus-eps-surprise-chart | Charles River Laboratories International, Inc. Quote
Segment in Detail
Charles River’s second-quarter total Research Models and Services (RMS) revenues of $209.9 million were up 12.6% year over year (up 13.9% organically). Organic revenue growth was driven by broad-based growth of research models in all geographies, particularly in China, as well as research model services, primarily the Insourcing Solutions business. Our model estimated the RMS business to grow 9.2% on a reported basis (10% growth organically) in the second quarter.
Discovery and Safety Assessment (DSA) revenues of $663.5 million rose 12.1% (up 11.7% organically). Organic revenue growth was mainly driven by growth in the Safety Assessment business on meaningful price increases and higher study volume. Going by our model, the DSA business was expected to register 6.3% growth in the second quarter (10% growth organically).
Manufacturing Solutions revenues totaled $186.5 million, down 4.2% year over year (up 6.6% organically). The organic revenue growth was primarily driven by the contract development and manufacturing organization and Microbial Solutions businesses.
Margins
The gross profit in the reported quarter was $398.9 million, up 11.8% from the prior-year quarter. Gross margin of 37.6% expanded 98 basis points (bps) year over year despite a 7.2% rise in the total costs of the company.
Selling, general & administrative expenses soared 51.7% to $199.8 million.
Adjusted operating income totaled $199.2 million, reflecting an 11.5% decline from the prior-year quarter. The adjusted operating margin in the second quarter contracted 433 bps to 18.8%.
Liquidity and Cash Position
Charles River exited the second quarter with cash and cash equivalents of $200.4 million compared with $201.6 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of the second quarter was $257.5 million compared with the prior-year period’s $252.1 million.
2023 Guidance
The company has narrowed its 2023 guidance.
For 2023, revenue growth is now expected in the band of 2.5-4.5% (from the earlier band of 2-4.5%) on a reported basis. Organic revenue growth is expected in the range of 5.5-7.5% (5-7.5%). The Zacks Consensus Estimate for total revenues is pegged at $4.11 billion, indicating a 3.4% rise from 2022.
Adjusted EPS for 2023 is now expected in the range of $10.30-$10.90 ($9.90-$10.90). The current Zacks Consensus Estimate is pegged at $10.33.
Our Take
Charles River exited the second quarter of 2022 with better-than-expected earnings and revenues. The results highlighted nearly 14% organic revenue growth, driven by strength across the DSA and RMS business segments. The company registered robust growth in small research models, research model services and the Safety Assessment business.
On the flip side, the contraction of operating margins on escalating expenses is concerning. Headwinds associated with foreign exchange due to the strengthening of the U.S. dollar and interest expense due to a rising interest rate environment increase concerns.
Zacks Rank and Key Picks
Charles River currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank #2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Charles River Laboratories International, Inc. (CRL) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30811.0 | 2023-08-09 00:00:00 UTC | Insulet (PODD) Q2 Earnings Beat, Sales Growth View Raised | ABT | https://www.nasdaq.com/articles/insulet-podd-q2-earnings-beat-sales-growth-view-raised | nan | nan | Insulet Corporation PODD reported adjusted earnings per share (EPS) of 38 cents for second-quarter 2023, marking a significant improvement from the year-ago period’s adjusted net loss of 6 cents per share.
Second-quarter 2023 adjusted earnings exceeded the Zacks Consensus Estimate by 58.3%.
The quarter’s adjustment excludes a charge associated with a voluntary medical device correction notice issued to replace the Omnipod DASH Personal Diabetes Managers.
GAAP EPS was 39 cents against a net loss of 50 cents per share in the year-ago period.
Revenues
Revenues in the second quarter totaled $396.5 million, beating the Zacks Consensus Estimate by 3.3%. Moreover, the top line jumped 32.4% from the year-ago quarter’s number (up 32.2% at the constant exchange rate or CER). Quarterly revenues exceeded the company’s previous growth expectations of 27-30%.
Segment in Detail
Insulet’s Total Omnipod revenues of $380.5 million reflected an increase of 33.2% year over year (up 33% at CER). International Omnipod revenues of $103.7 million rose 16% (up 15.5% at CER). U.S. Omnipod revenues grew 40.9% year over year to $276.8 million.
Insulet Corporation Price, Consensus and EPS Surprise
Insulet Corporation price-consensus-eps-surprise-chart | Insulet Corporation Quote
Omnipod 5 continues to gain market share in the diabetes technology market as the only FDA-approved fully disposable, pod-based automated insulin delivery system.
The Drug Delivery business revenues totaled $16 million, up 17.6% year over year.
Margins
Gross profit in the reported quarter was $264.9 million, up 39.2% from the prior-year quarter. Gross margin of 66.8% expanded 325 basis points year over year.
Selling, general & administrative expenses rose 2.5% to $178.7 million. Research and development expenses rose 29.3% year over year to $55.1 million.
The operating profit in the quarter was $31.1 million against the year-ago quarter operating loss of $26.7 million.
Cash Position
Insulet exited the second quarter of 2023 with cash and cash equivalents of $660.1 million, compared with $620.7 million at the end of the first quarter.
2023 Guidance
Insulet has updated its guidance for 2023.
For 2023, the company has raised its revenue growth guidance to the range of 22-25% (from the earlier band of 18-22%). The Zacks Consensus Estimate for total revenues is pegged at $1.57 billion, implying 20.3% growth from the year-ago reported number.
Insulet’s Total Omnipod revenue growth is now expected in the range of 25-28% (21-25% expected previously). The company has narrowed its expectation of Drug Delivery revenue decline to 45-50% (previous expectation was a decline of 45-55%).
For the third quarter of 2023, Insulet projects revenue growth of 18-21%. The Zacks Consensus Estimate for total revenues is pegged at $397.3 million.
Total Omnipod revenues are likely to grow 20-23%. However, Drug Delivery revenues are expected to fall in the range of 25-30%.
Our Take
Insulet exited the second quarter of 2023 with better-than-expected earnings and revenues. The company’s performance benefited from global Omnipod growth of 33%. Omnipod 5 continued to be a driving force behind Insulet’s strong U.S. growth in the second quarter. U.S. Omnipod revenue growth was 41%, exceeding the company’s guidance range. Revenue growth continued to be driven by Insulet’s annuity-based model with consecutive record new customer starts and growing U.S. pharmacy volume. The raised 2023 guidance is a major upside.
However, supply chain disruptions and inflationary pressure continue to challenge business operations. Increasing expenses are putting pressure on margins.
Zacks Rank and Key Picks
Insulet currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank #2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Insulet Corporation (PODD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30812.0 | 2023-08-09 00:00:00 UTC | Abbott India posts 41% rise in Q1 profit on strong sales | ABT | https://www.nasdaq.com/articles/abbott-india-posts-41-rise-in-q1-profit-on-strong-sales | nan | nan | BENGALURU, Aug 9 (Reuters) - Abbott India ABOT.NS, the Indian arm of U.S. healthcare firm Abbott Laboratories ABT.N, reported a 41% rise in its first-quarter profit on Wednesday, driven by strong sales in its mainstay pharmaceuticals segment.
The company, which makes pain-reliever ibuprofen under the brand name Brufen, said its profit rose to 2.90 billion rupees ($35.02 million), compared with 2.06 billion rupees a year earlier.
Revenue from operations rose 13.4% to 14.79 billion rupees for the quarter.
For further earnings highlights, click here.
KEY CONTEXT
Abbott India, for which the pharmaceutical segment is the sole revenue generator, develops and distributes over 600 products in India, including vitamins, anti-allergic drugs and consumer care.
The company has reported a double-digit growth in its revenue for the past three quarters, led by falling operating expenses and steady sales.
Last month, peer GlaxoSmithKline Pharmaceuticals GLAX.NS posted an 11% rise in its first-quarter profit, helped by a steady vaccines business.
PEER COMPARISON
Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth
Profit growth
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Abbott India Ltd
ABOT.NS
44.63
32.59
13.06
14.87
Buy
7
1.06
0.76
GlaxoSmithKline Pharmaceuticals Ltd
GLAX.NS
37.12
26.54
5.72
4.93
Buy
6
0.98
2.28
Pfizer Ltd
PFIZ.NS
27.24
18.29
6.85
5.45
Strong Buy
5
0.87
0.89
Cipla Ltd
CIPL.NS
24.69
15.76
10.82
19.32
Buy
38
1.09
0.67
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
-- All data from Refinitiv
-- $1 = 82.8150 Indian rupees
APRIL TO JUNE STOCK PERFORMANCE https://tmsnrt.rs/3s91Chv
(Reporting by Kashish Tandon and Biplob Kumar Das in Bengaluru; Editing by Janane Venkatraman)
((Kashish.Tandon@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BENGALURU, Aug 9 (Reuters) - Abbott India ABOT.NS, the Indian arm of U.S. healthcare firm Abbott Laboratories ABT.N, reported a 41% rise in its first-quarter profit on Wednesday, driven by strong sales in its mainstay pharmaceuticals segment. The company has reported a double-digit growth in its revenue for the past three quarters, led by falling operating expenses and steady sales. Last month, peer GlaxoSmithKline Pharmaceuticals GLAX.NS posted an 11% rise in its first-quarter profit, helped by a steady vaccines business. | BENGALURU, Aug 9 (Reuters) - Abbott India ABOT.NS, the Indian arm of U.S. healthcare firm Abbott Laboratories ABT.N, reported a 41% rise in its first-quarter profit on Wednesday, driven by strong sales in its mainstay pharmaceuticals segment. Revenue growth Profit growth Mean rating* # of analysts Stock to price target** Div yield (%) Abbott India Ltd 24.69 15.76 10.82 19.32 Buy 38 1.09 0.67 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT | BENGALURU, Aug 9 (Reuters) - Abbott India ABOT.NS, the Indian arm of U.S. healthcare firm Abbott Laboratories ABT.N, reported a 41% rise in its first-quarter profit on Wednesday, driven by strong sales in its mainstay pharmaceuticals segment. Revenue growth Profit growth Mean rating* # of analysts Stock to price target** Div yield (%) Abbott India Ltd 24.69 15.76 10.82 19.32 Buy 38 1.09 0.67 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT | BENGALURU, Aug 9 (Reuters) - Abbott India ABOT.NS, the Indian arm of U.S. healthcare firm Abbott Laboratories ABT.N, reported a 41% rise in its first-quarter profit on Wednesday, driven by strong sales in its mainstay pharmaceuticals segment. Revenue from operations rose 13.4% to 14.79 billion rupees for the quarter. Last month, peer GlaxoSmithKline Pharmaceuticals GLAX.NS posted an 11% rise in its first-quarter profit, helped by a steady vaccines business. |
30813.0 | 2023-08-08 00:00:00 UTC | Abbott Laboratories (ABT) Shares Cross Below 200 DMA | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-shares-cross-below-200-dma | nan | nan | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $105.94, changing hands as low as $104.05 per share. Abbott Laboratories shares are currently trading down about 3.3% on the day. The chart below shows the one year performance of ABT shares, versus its 200 day moving average:
Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $115.83 as the 52 week high point — that compares with a last trade of $104.92. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
Also see:
Historical Stock Price
ALL market cap history
TWX Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $105.94, changing hands as low as $104.05 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $115.83 as the 52 week high point — that compares with a last trade of $104.92. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Historical Stock Price ALL market cap history TWX Options Chain The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $105.94, changing hands as low as $104.05 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $115.83 as the 52 week high point — that compares with a last trade of $104.92. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Historical Stock Price ALL market cap history TWX Options Chain The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $105.94, changing hands as low as $104.05 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $115.83 as the 52 week high point — that compares with a last trade of $104.92. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Historical Stock Price ALL market cap history TWX Options Chain The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, shares of Abbott Laboratories (Symbol: ABT) crossed below their 200 day moving average of $105.94, changing hands as low as $104.05 per share. The chart below shows the one year performance of ABT shares, versus its 200 day moving average: Looking at the chart above, ABT's low point in its 52 week range is $93.25 per share, with $115.83 as the 52 week high point — that compares with a last trade of $104.92. The ABT DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average » Also see: Historical Stock Price ALL market cap history TWX Options Chain The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
30814.0 | 2023-08-08 00:00:00 UTC | Is AbbVie Still a Good Dividend Stock to Buy? | ABT | https://www.nasdaq.com/articles/is-abbvie-still-a-good-dividend-stock-to-buy | nan | nan | How do you know when a former favorite dividend stock is no longer one you should buy, or hold? Some would say it's time to look away as soon as the profits the company uses to make dividend payments begin shrinking.
AbbVie (NYSE: ABBV) shares offer an above-average dividend yield of 4% at recent prices, but some cautious investors were turned off by earnings that fell by 58% to $2.3 billion in the first half of the year.
In January, Humira, AbbVie's top-selling drug, lost patent-protected market exclusivity in the United States. But the good news for investors is that this is a big company with lots of moving pieces. Here's a look at the pieces that are moving in the right direction. Let's see if they can offset Humira's losses and help AbbVie continue a legendary streak of dividend raises.
Dividends hardly get more reliable than this
Abbott Laboratories spun out its pharmaceutical operation as AbbVie back in 2013. Abbott hasn't missed a quarterly dividend payment in nearly 100 years, and it's raised its payout every year since 1973.
AbbVie kept up with the streak of annual increases and stepped on the gas. The drugmaker's payout has risen an outstanding 270% over the past decade.
Lucrative drug sales allowed AbbVie's operation to generate a whopping $23.5 billion in free cash flow over the past 12 months. The company needed just 43% of that amount to meet its dividend commitment. That suggests earnings can fall much further before investors need to worry about a reduced dividend.
Image source: Getty Images.
Managing the decline
Global Humira sales peaked at $21.2 billion last year, and $18.6 billion of that came from the U.S. market. Now that
Several lower-cost biosimilar versions, such as Amjevita from Amgen, are available in the U.S. market, global Humira sales fell to an annualized $16 billion during the second quarter.
This year, AbbVie expects about $53.4 billion in total revenue, which would be a decrease of just 8% from last year. The company is managing Humira's decline with rapidly rising sales of a few more recently launched drugs. Rinvoq is an arthritis treatment that launched in 2019, and it's already generating $3.7 billion in annualized sales. Skyrizi for psoriasis is about the same age as Rinvoq, and it reached an annualized run rate of $7.5 billion in the second quarter.
Earlier this year, AbbVie said it expected combined sales of Skyrizi and Rinvoq to exceed peak Humira sales by 2027. The pace they're on, though, suggests the company will beat its own timeline, and these are hardly its only growth drivers.
Vraylar, a schizophrenia treatment first approved in 2015, became a new option last December for millions of Americans with major depressive disorder. Now, AbbVie thinks Vraylar can generate an additional $2.5 billion in annual revenue at its peak.
In May, AbbVie and its collaboration partner, Genmab, received approval from the U.S. Food and Drug Administration for a new lymphoma treatment called Epkinly. This new injectable treatment is expected to generate sales of around $3 billion annually at its peak.
Still a buy
Replacing shrinking Humira revenue will be a big challenge for AbbVie, but it looks as if Skyrizi and Rinvoq are up to the task. With additional growth drivers like Epkinly and Vraylar pushing the company's needle, AbbVie should have no problem raising its dividend payout at a pace that exceeds inflation over the long run. Adding some shares to an income-generating portfolio looks like the smart move to make right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (NYSE: ABBV) shares offer an above-average dividend yield of 4% at recent prices, but some cautious investors were turned off by earnings that fell by 58% to $2.3 billion in the first half of the year. Lucrative drug sales allowed AbbVie's operation to generate a whopping $23.5 billion in free cash flow over the past 12 months. With additional growth drivers like Epkinly and Vraylar pushing the company's needle, AbbVie should have no problem raising its dividend payout at a pace that exceeds inflation over the long run. | Managing the decline Global Humira sales peaked at $21.2 billion last year, and $18.6 billion of that came from the U.S. market. Now that Several lower-cost biosimilar versions, such as Amjevita from Amgen, are available in the U.S. market, global Humira sales fell to an annualized $16 billion during the second quarter. Earlier this year, AbbVie said it expected combined sales of Skyrizi and Rinvoq to exceed peak Humira sales by 2027. | AbbVie (NYSE: ABBV) shares offer an above-average dividend yield of 4% at recent prices, but some cautious investors were turned off by earnings that fell by 58% to $2.3 billion in the first half of the year. Earlier this year, AbbVie said it expected combined sales of Skyrizi and Rinvoq to exceed peak Humira sales by 2027. With additional growth drivers like Epkinly and Vraylar pushing the company's needle, AbbVie should have no problem raising its dividend payout at a pace that exceeds inflation over the long run. | Abbott hasn't missed a quarterly dividend payment in nearly 100 years, and it's raised its payout every year since 1973. Now, AbbVie thinks Vraylar can generate an additional $2.5 billion in annual revenue at its peak. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
30815.0 | 2023-08-07 00:00:00 UTC | Henry Schein (HSIC) Q2 Earnings Top, Operating Margin Dips | ABT | https://www.nasdaq.com/articles/henry-schein-hsic-q2-earnings-top-operating-margin-dips | nan | nan | Henry Schein, Inc. HSIC registered adjusted earnings per share (EPS) of $1.31 in the second quarter of 2023, up 0.8% from the year-ago period’s adjusted EPS. The metric beat the Zacks Consensus Estimate by 4.8%.
Revenues in Detail
Henry Schein reported net sales of $3.1 billion in the second quarter, up 2.3% year over year. The metric missed the Zacks Consensus Estimate by 0.3%.
The year-over-year increase included a 0.2% internal decrease in local currencies, 2.9% growth from acquisitions and a 0.4% decline related to unfavorable foreign exchange.
Henry Schein, Inc. Price, Consensus and EPS Surprise
Henry Schein, Inc. price-consensus-eps-surprise-chart | Henry Schein, Inc. Quote
Sales of personal protective equipment (PPE) and COVID-19 test kits in the second quarter were $163 million, compared with $259 million in the prior-year period. Excluding sales of PPE and COVID-19 test kits, second-quarter internal sales growth in local currencies was 3.3% year over year.
On a geographic basis, the company recorded sales of $2.26 billion in North America, up 0.1% year over year. Sales totaled $838 million in the International market, up 8.7% year over year. Our model projected sales in North America and International sales to be $2.33 billion and $774.5 million, respectively.
Segmental Analysis
Henry Schein derives revenues from three operating segments — Dental, Medical and Technology and Value-added Services.
Dental
In the second quarter, the company recorded $1.96 billion in global Dental sales, up 5.6% year over year. This compares with our model’s projected year-over-year improvement of 4.6%.
The segment’s revenues included an internally generated sales increase of 2% in local currencies and 4.2% growth from acquisitions. The business registered a 0.6% decline related to foreign currency exchange.
Medical
Global Medical revenues declined 4.6% year over year to $950 million. Our model projected the segment’s revenues to decline 2.1%.
The segment’s revenues included an internally generated sales decline of 5.3% in local currencies, 0.8% growth from acquisitions and a 0.1% decline related to foreign currency exchange.
Technology and Value-Added Services
Revenues from global Technology and Value-added Services rose 6.6% to $193 million. Our model’s projection was a 6.2% improvement year over year.
The figure included 5.5% internal sales growth in local currencies, 1.5% growth from acquisitions and a 0.3% decline related to foreign currency exchange.
Margin Trend
In the reported quarter, the gross profit totaled $975 million, reflecting a 3.2% increase year over year. The gross margin expanded 26 basis points (bps) to 31.6%.
SG&A expenses rose 4% to $707 million in the quarter under review.
The adjusted operating profit in the second quarter was $268 million, an increase of 1.1% year over year. Meanwhile, the adjusted operating margin contracted 10 bps year over year to 8.6%.
Financial Position
Henry Schein exited the second quarter of 2023 with cash and cash equivalents of $137 million compared with $117 million as of Dec 31, 2022. The long-term debt of the company at the end of the second quarter was $1.13 billion compared with $1.04 billion at the end of 2022.
The cumulative net cash provided by operating activities at the end of the second quarter of 2023 was $274 million compared with $157 million in the year-ago period.
In the second quarter of 2023, HSIC repurchased nearly 638,000 shares of its common stock for $50 million. The company had approximately $365 million authorized and available for future stock repurchases at the end of the reported quarter.
2023 Guidance
Henry Schein reiterated its outlook for 2023, which considers the current continuing operations and recently announced acquisitions. The guidance also assumes that present foreign currency exchange rates will prevail, and end markets will remain consistent with current market conditions.
For 2023, the company expects adjusted EPS in the range of $5.18-$5.35 (unchanged). The Zacks Consensus Estimate for the metric is currently pegged at $5.26.
For 2023, Henry Schein expects sales growth of nearly 1%-3% compared with the 2022 figure (unchanged from the previous guidance). The Zacks Consensus Estimate for revenues is currently pegged at $12.83 billion.
Our Take
Henry Schein ended the second quarter of 2023 with an earnings beat and a revenue miss. On a positive note, the North American dental equipment business and dental consumable merchandise reported year-over-year sales growth. There was also a positive contribution from Technology and Value-added Services, implants, biomaterials and endodontic products.
The Dental business in North America reflected good patient traffic and continued investments in technology and equipment by dental practitioners. Advancements made in the BOLD+1 Strategic Plan buoy optimism, with more than $1 billion investments committed to acquisitions to date. The gross margin expansion in the quarter appears promising too.
Meanwhile, sales of PPE and COVID-19 test kits continued to post a decline in the quarter under review. Increased capital deployment for acquisitions has affected the quarter’s results more than in previous years.
Zacks Rank and Key Picks
Henry Schein currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Henry Schein, Inc. (HSIC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30816.0 | 2023-08-07 00:00:00 UTC | Analysts See 10% Upside For The Holdings of SDY | ABT | https://www.nasdaq.com/articles/analysts-see-10-upside-for-the-holdings-of-sdy | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR S&P Dividend ETF (Symbol: SDY), we found that the implied analyst target price for the ETF based upon its underlying holdings is $136.53 per unit.
With SDY trading at a recent price near $124.41 per unit, that means that analysts see 9.74% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SDY's underlying holdings with notable upside to their analyst target prices are Realty Income Corp (Symbol: O), Abbott Laboratories (Symbol: ABT), and Fuller Company (Symbol: FUL). Although O has traded at a recent price of $59.22/share, the average analyst target is 18.25% higher at $70.03/share. Similarly, ABT has 14.69% upside from the recent share price of $107.65 if the average analyst target price of $123.47/share is reached, and analysts on average are expecting FUL to reach a target price of $82.50/share, which is 13.95% above the recent price of $72.40. Below is a twelve month price history chart comparing the stock performance of O, ABT, and FUL:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
SPDR S&P Dividend ETF SDY $124.41 $136.53 9.74%
Realty Income Corp O $59.22 $70.03 18.25%
Abbott Laboratories ABT $107.65 $123.47 14.69%
Fuller Company FUL $72.40 $82.50 13.95%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | SPDR S&P Dividend ETF SDY $124.41 $136.53 9.74% Realty Income Corp O $59.22 $70.03 18.25% Abbott Laboratories ABT $107.65 $123.47 14.69% Fuller Company FUL $72.40 $82.50 13.95% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SDY's underlying holdings with notable upside to their analyst target prices are Realty Income Corp (Symbol: O), Abbott Laboratories (Symbol: ABT), and Fuller Company (Symbol: FUL). Similarly, ABT has 14.69% upside from the recent share price of $107.65 if the average analyst target price of $123.47/share is reached, and analysts on average are expecting FUL to reach a target price of $82.50/share, which is 13.95% above the recent price of $72.40. | Three of SDY's underlying holdings with notable upside to their analyst target prices are Realty Income Corp (Symbol: O), Abbott Laboratories (Symbol: ABT), and Fuller Company (Symbol: FUL). Similarly, ABT has 14.69% upside from the recent share price of $107.65 if the average analyst target price of $123.47/share is reached, and analysts on average are expecting FUL to reach a target price of $82.50/share, which is 13.95% above the recent price of $72.40. SPDR S&P Dividend ETF SDY $124.41 $136.53 9.74% Realty Income Corp O $59.22 $70.03 18.25% Abbott Laboratories ABT $107.65 $123.47 14.69% Fuller Company FUL $72.40 $82.50 13.95% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, ABT has 14.69% upside from the recent share price of $107.65 if the average analyst target price of $123.47/share is reached, and analysts on average are expecting FUL to reach a target price of $82.50/share, which is 13.95% above the recent price of $72.40. Three of SDY's underlying holdings with notable upside to their analyst target prices are Realty Income Corp (Symbol: O), Abbott Laboratories (Symbol: ABT), and Fuller Company (Symbol: FUL). Below is a twelve month price history chart comparing the stock performance of O, ABT, and FUL: Below is a summary table of the current analyst target prices discussed above: | SPDR S&P Dividend ETF SDY $124.41 $136.53 9.74% Realty Income Corp O $59.22 $70.03 18.25% Abbott Laboratories ABT $107.65 $123.47 14.69% Fuller Company FUL $72.40 $82.50 13.95% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SDY's underlying holdings with notable upside to their analyst target prices are Realty Income Corp (Symbol: O), Abbott Laboratories (Symbol: ABT), and Fuller Company (Symbol: FUL). Similarly, ABT has 14.69% upside from the recent share price of $107.65 if the average analyst target price of $123.47/share is reached, and analysts on average are expecting FUL to reach a target price of $82.50/share, which is 13.95% above the recent price of $72.40. |
30817.0 | 2023-08-06 00:00:00 UTC | 2 Top Stocks to Buy in August and Hold Forever | ABT | https://www.nasdaq.com/articles/2-top-stocks-to-buy-in-august-and-hold-forever | nan | nan | Technological progress sometimes renders products or entire industries completely obsolete. That's true even within the healthcare sector, which as a whole is unlikely to fall out of style anytime soon. Even so, individual healthcare companies must constantly innovate to stay relevant and deliver consistent performances over the long run.
With that said, let's look at two healthcare stocks with solid track records of innovation and are worth buying and holding onto for good: Regeneron (NASDAQ: REGN) and Abbott Laboratories (NYSE: ABT).
ABT data by YCharts.
1. Regeneron
Biotech giant Regeneron has outperformed the market over the past year, partly thanks to the company's excellent financial results and prospects. In the second quarter, Regeneron grew its sales by 11% year over year to $3.16 billion. Its net income jumped by 14% year over year to $968 million. Although sales of the company's coronavirus portfolio have declined, the drugmaker can rely on two key assets in the midterm to keep its revenue and earnings growing.
The first is Dupixent, an internally developed medicine for atopic dermatitis (eczema), co-marketed with Sanofi. Dupixent's sales are growing rapidly (global sales soared by 33% year over year in Q2), but things could get even better within the next year or so, provided Regeneron and Sanofi earn approval for it in treating chronic obstructive pulmonary disease (COPD).
Earlier this year, the partners released positive results from a phase 3 clinical trial along those lines. If Dupixent earns an indication as a treatment for COPD, it will move the needle for the drug -- and Regeneron's sales.
The second key asset the biotech can count on is a high-dose formulation of Eylea, a treatment it developed and co-markets with Roche for an eye disease called age-related macular degeneration. The high-dose version could decrease the number of times it is administered annually compared to the original formulation of Eylea.
It is worth noting that the U.S. Food and Drug Administration (FDA) recently declined to approve Regeneron's high-dose formulation of Eylea, but that was due to issues identified by the agency at a manufacturing site of a third-party filler of the medicine. There were no safety or efficacy issues, nor did the FDA request additional trials.
In other words, Regeneron's higher-dose Eylea will almost certainly earn the nod eventually. Eylea's new formulation and Dupixent should drive solid revenue and earnings growth for Regeneron for a while. They also exemplify the company's ability to develop innovative and highly successful medicines. Regeneron currently has many more programs in its pipeline.
REGN Revenue (Quarterly) data by YCharts.
Over the past decade, the company's revenue, earnings, and free cash flow have generally followed a solid upward trajectory, with an abnormal rise when it started selling coronavirus medicines. The company could sustain its improving financial results and market-beating ways for a long time to come.
2. Abbott Laboratories
Abbott Laboratories is a medical device specialist that boasts dozens of products across several areas, including diabetes, structural heart, and cardiovascular care. The company also owns several other segments: diagnostics, established pharmaceuticals, and nutrition.
One of Abbott's strengths is its long and successful history navigating the heavily regulated healthcare industry. The company is a known leader in its field, meaning the physicians who use its devices to treat their patients -- sometimes for life-threatening conditions -- know they can trust Abbott's products. Its entrenched position in its sector is a significant strength.
But the company doesn't just rely on past prestige. Abbott Labs continues to innovate. Just last year, the company won three awards (for three separate products) at the CES Innovation Awards, an annual event organized by the Consumer Technology Association to honor breakthrough technological advances in life sciences.
Abbott's FreeStlye Libre, a continuous glucose monitoring system, also won a separate innovation award late last year. The company's robust portfolio and its ability to develop newer and better products have generally led to solid financial results. And there's every reason to think Abbott will continue down that road for a long time.
ABT Revenue (Quarterly) data by YCharts.
The need for the kinds of products it offers will only increase alongside our aging population. Here's one more reason to consider Abbott's stock: The dividend. The company is a Dividend King on its 51st consecutive year of payout increases. Abbott's 264% dividend hike over the past 10 years alone is impressive. The company's 1.85% yield isn't huge, but it still beats the S&P 500's average of 1.54%.
Abbott Laboratories may not have the most exciting business around. However, the company's solid fundamentals, innovative potential, industry know-how, and dividend combine to make it an excellent stock for investors to buy and hold in August -- or in any month, for that matter.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With that said, let's look at two healthcare stocks with solid track records of innovation and are worth buying and holding onto for good: Regeneron (NASDAQ: REGN) and Abbott Laboratories (NYSE: ABT). ABT data by YCharts. ABT Revenue (Quarterly) data by YCharts. | With that said, let's look at two healthcare stocks with solid track records of innovation and are worth buying and holding onto for good: Regeneron (NASDAQ: REGN) and Abbott Laboratories (NYSE: ABT). ABT data by YCharts. ABT Revenue (Quarterly) data by YCharts. | With that said, let's look at two healthcare stocks with solid track records of innovation and are worth buying and holding onto for good: Regeneron (NASDAQ: REGN) and Abbott Laboratories (NYSE: ABT). ABT data by YCharts. ABT Revenue (Quarterly) data by YCharts. | With that said, let's look at two healthcare stocks with solid track records of innovation and are worth buying and holding onto for good: Regeneron (NASDAQ: REGN) and Abbott Laboratories (NYSE: ABT). ABT data by YCharts. ABT Revenue (Quarterly) data by YCharts. |
30818.0 | 2023-08-04 00:00:00 UTC | Globus Medical (GMED) Q2 Earnings Beat Estimates, Margins Dip | ABT | https://www.nasdaq.com/articles/globus-medical-gmed-q2-earnings-beat-estimates-margins-dip | nan | nan | Globus Medical, Inc. GMED reported adjusted earnings per share (EPS) of 63 cents for the second quarter of 2023, beating the Zacks Consensus Estimate by 5%. The metric increased 12.5% year over year.
The adjusted EPS excludes certain non-recurring expenses and benefits like the amortization of intangibles, acquisition-related costs/licensingand provision for litigation among others.
Without adjustments, the company registered a GAAP EPS of 57 cents, a 7.5% increase from the year-ago figure.
Revenues
Worldwide sales in the quarter under review totaled $291.6 million, up 10.6% year over year (up 10.9% at constant exchange rate or CER). The reported figure exceeded the Zacks Consensus Estimate by 3.4%.
Quarterly Details
During the quarter under review, net sales generated in the United States increased 9% year over year to $245.5 million. Internationally, revenues increased 20.2% to $46.1 million, up 22% year over year at CER.
Through its product category, Musculoskeletal Solutions generated revenues of $256.9 million, up 9.7% year over year. Growth was led primarily by the company’s spine and trauma businesses performances.
Enabling Technologies' product revenues of $34.8 million in the quarter improved 18.2% from the prior-year figure. The significant year-over-year surge was driven by sales of the company’s E3D imaging system as well as continued robotic system penetration, primarily in the United States.
Globus Medical, Inc. Price, Consensus and EPS Surprise
Globus Medical, Inc. price-consensus-eps-surprise-chart | Globus Medical, Inc. Quote
Margin
Gross profit in the reported quarter rose 10.2% year over year to $215.1 million. However, gross margin contracted 25 basis points (bps) to 73.8% on a 11.7% rise in cost of goods sold to $76.5 million.
SG&A expenses in the reported quarter were $120.1 million, up 12.5% from the year-ago quarter. The increase reflected higher sales compensation costs, driven by volume, competitive rep conversions and higher G&A costs driven by increased legal expenses as well as bad debt expense.
Research and development expenses increased 22.7% to $21.3 million. According to Globus Medical, the increase in expenses was largely focused on Spine and Enabling Technologies and was reflective of head count growth as the company works to develop new technologies.
The quarter’s adjusted operating profit rose 3.7% to $73.7 million from the year-ago quarter. However, the adjusted operating margin contracted 167 bps in the quarter to 25.3%.
Cash Position
Globus Medical exited the second quarter of 2023 with cash and cash equivalents, and short-term marketable securities of $612.8 million compared with $504.4 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of the second quarter was $88.3 million compared with the year-ago figure of $81.6 million.
On Feb 9, 2023, the company announced its plans to acquire the San Diego-based spine technology firm, NuVasive Inc., in an all-stock deal valued at around $3.1 billion. The transaction, which is now expected to close in the third quarter of 2023, reflects both companies’ vision to improve patient care through innovation in unmet clinical needs. Meanwhile, in May, the company received a second request from the Federal Trade Commission in connection with its review of the acquisition.
2023 Guidance
The company has updated its 2023 guidance.
With the planned purchase in the picture, full-year net sales are projected to be $1.125 billion (up from the earlier-provided expectation of $1.1 billion). The Zacks Consensus Estimate for the same is also currently pegged at $1.12 billion.
The company’s adjusted EPS guidance for 2023 was reiterated at $2.30, suggesting 11.7% growth from 2022. The Zacks Consensus Estimate for the same is pegged at $2.37 currently.
Our Take
Globus Medical exited the second quarter of 2023 with earnings and revenue beat. The robust growth of revenues in both the United States and the international market is impressive. Rapid market interest and customer demand have positioned Excelsius3D, the company’s latest addition to the Excelsius Ecosystem, as a major growth driver in 2023.
According to GMED, US Spine grew 6% in the second quarter, with notable gains across the product portfolio in biologics, MIS system, pedicle screws and 3D-printed implants. This above-market growth is driven by competitive rep productivity and robotic pull-through. In the second quarter, the company launched three new products, REFLECT, MARVEL and Ossifuse.
However, escalating costs and expenses are putting pressure on margins.
Zacks Rank and Other Key Picks
Globus Medical currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Globus Medical, Inc. (GMED) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30819.0 | 2023-08-04 00:00:00 UTC | ResMed's (RMD) Q4 Earnings Miss, Revenues Beat Estimates | ABT | https://www.nasdaq.com/articles/resmeds-rmd-q4-earnings-miss-revenues-beat-estimates | nan | nan | ResMed Inc.’s RMD adjusted earnings per share (EPS) in the fourth quarter of fiscal 2023 were $1.60, up 7.4% year over year. However, the metric missed the Zacks Consensus Estimate by 4.2%.
The adjustments include certain non-recurring expenses/benefits like the amortization of acquired intangibles, restructuring and acquisition-related expenses, among others.
GAAP EPS in the reported quarter was $1.56, up 17.3% from the year-ago quarter’s EPS.
For the full year, adjusted EPS was $6.44, lagging the Zacks Consensus Estimate by 0.9%. Adjusted EPS, however, increased 11.2% from the fiscal 2022 adjusted figure.
Revenues
Fiscal fourth-quarter revenues on a reported basis increased 23% year over year (same at the constant exchange rate or CER) to $1.12 billion. The figure beat the Zacks Consensus Estimate by 0.4%.
The year-on-year movements in foreign exchange negatively impacted revenues by approximately $3 million in the fiscal fourth quarter.
Full-year revenues were $4.22 billion, an 18% improvement on a reported basis from fiscal 2022 (up 21% at CER). Full-year revenues matched the Zacks Consensus Estimate.
ResMed Inc. Price, Consensus and EPS Surprise
ResMed Inc. price-consensus-eps-surprise-chart | ResMed Inc. Quote
A Closer View of the Q4 Top Line
Total Sleep and Respiratory Care revenues improved 21% (up 21% at CER) from the prior-year period to $983.5 million.Going by our model, the Total Sleep and Respiratory Care segment globally was projected to rise 9.3% year over year on a reported basis in the fiscal fourth quarter.
Total Sleep and Respiratory Care revenues in Europe, Asia and other markets rose 14% on a reported basis (same at CER) to $322.6 million.
In U.S., Canada, and Latin America, total Sleep and Respiratory Care revenues were $660.9 million, up 25% year over year.
Global Revenues comprised Total Devices revenues of $602.4 million, up 24% (same at CER) and Total Masks and other revenues of $381 billion, up 17% (up 18% at CER), all on a year-over-year basis.
Global Device revenues, per our model, were expected to grow 11.2% in the fiscal fourth quarter. Global Masks and other revenues, according to our model, were expected to grow 6.3% in the fourth quarter.
Meanwhile, Software-as-a-Service (SaaS) revenues grew 34% to $138.6 million year over year.
Margins
The adjusted gross profit in the quarter under review rose 18.3% to $625.8 million, despite a 28.6% uptick in the adjusted cost of sales (excluding the amortization of acquired intangibles).
However, the adjusted gross margin for the fiscal fourth quarter was 55.8%, reflecting a contraction of 205 basis points (bps). This decrease can be mainly attributed to component cost increases, warranty and manufacturing-related cost increases and product mix shifts due to the significant increase in sleep device sales, partially offset by increases in average selling prices.
SG&A expenses rose 24.7% year over year to $240.7 million. Research and development expenses increased 21.5% to $78.1 million.
The adjusted operating income was $306.9 million in the quarter under discussion, up 13% from the year-ago quarter. However, the adjusted operating margin contracted 233 bps year over year to 27.4%.
Financial Updates
ResMed exited the fourth quarter of fiscal 2023 with cash and cash equivalents of $227.9 million, compared with $273.7 million at the end of fiscal 2022. Total debt (short and long-term) at the end of the fiscal fourth quarter was $1.44 billion compared with $775.2 million at the end of the fiscal 2022.
The cumulative net cash provided by operating activities at the end of the fiscal fourth quarter was $237.4 million compared with $79.5 million in the year-ago period.
The company paid out $64.7 million in dividends in the fiscal fourth quarter.
Our Take
ResMed exited the fourth quarter of fiscal 2023 with lower-than-expected earnings but higher-than-expected revenues. The company recorded a robust sales performance in the quarter backed by the ongoing combined availability of cloud-connected AirSense 10 and AirSense 11 sleep devices to support strong underlying global demand, as well as solid growth across ResMed’s broader product portfolio.
Meanwhile, escalating costs and expenses that put pressure on the company’s gross and operating margins are worrisome. A year-over-year increase in the fiscal fourth quarter’s SG&A expenses was due to an increase in employee-related costs marketing and travel expenses, as well as the incremental SG&A expenses associated with MEDIFOX DAN that was acquired in November 2022.
Zacks Rank & Other Key Picks
ResMed currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report ResMed Inc. (RMD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report ResMed Inc. (RMD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report ResMed Inc. (RMD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report ResMed Inc. (RMD) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30820.0 | 2023-08-04 00:00:00 UTC | Peter Lynch Detailed Fundamental Analysis - ABT | ABT | https://www.nasdaq.com/articles/peter-lynch-detailed-fundamental-analysis-abt-2 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
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About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. |
30821.0 | 2023-08-04 00:00:00 UTC | Tandem Diabetes (TNDM) Reports Narrower Q2 Loss, Trims '23 View | ABT | https://www.nasdaq.com/articles/tandem-diabetes-tndm-reports-narrower-q2-loss-trims-23-view | nan | nan | Tandem Diabetes Care, Inc. TNDM reported an adjusted loss of 30 cents per share for the second quarter of 2023, wider than the adjusted loss of 24 cents per share in the year-ago period. However, the figure compares favorably with the Zacks Consensus Estimate of a loss of 54 cents.
On a GAAP basis, the loss was 55 cents per share in the second quarter compared with the year-ago period’s loss of 24 cents.
Revenues
GAAP revenues in the quarter came in at $195.9 million, down 2.2% year over year and missed the Zacks Consensus Estimate by 2.8%.
In September 2022, the company began offering the Tandem Choice Program to eligible t:slim X2 customers to provide a pathway to the ownership of its newest hardware platform, Tandem Mobi, when available. Based on that, the company is now reporting adjusted revenues as well.
Tandem Diabetes Care, Inc. Price, Consensus and EPS Surprise
Tandem Diabetes Care, Inc. price-consensus-eps-surprise-chart | Tandem Diabetes Care, Inc. Quote
Non-GAAP revenues were $198.2 million in the reported quarter on 29,494 pump shipments worldwide.
Quarter in Detail
Tandem Diabetes reports under two primary markets based on the geographic location to which its products are shipped.
The United States
Total sales in this region came in at $142.5 million in the second quarter on a GAAP basis, down 2.2% year over year. This compares with our model’s projected GAAP U.S. sales of $151.9 million.
Non-GAAP sales in the United States were $144.8 million. Per our model, projected revenues were $145.8 million.
The company shipped 18,964 pumps in the second quarter, down 8.9% from the year-ago period.
Outside the United States
In the second quarter, the company registered GAAP sales of $53.4 million (same on a non-GAAP basis), a 2.2% decline from the year-ago period. Our model’s estimate was pegged at $49 million for this region.
Margin Details
The gross profit in the second quarter was $101.7 million, a 0.2% decline year over year. The gross margin was 51.9%, reflecting an expansion of 102 basis points (bps).
SG&A expenses rose 21.1% to $97.6 million in the quarter under review. R&D expenses increased 27.9% to $42.9 million.
The company registered an adjusted operating loss of $38.8 million in the second quarter compared with the year-ago operating loss of $12.2 million.
Financial Position
Tandem Diabetes exited the second quarter of 2023 with cash and cash equivalents and short-term investments of $507.2 million compared with $616.9 million as of Dec 31, 2022.
2023 Guidance
Tandem Diabetes provided updated sales guidance for 2023.
For the full year, non-GAAP sales are estimated to be at least $785 million (down from the earlier range of $885 million-$900 million). The Zacks Consensus Estimate for the full-year 2023 revenues is pegged at $888.2 million, way above the company’s expectation.
Full-year non-GAAP sales inside the United States are expected to be at least $575 million (again a slash from the earlier projected band of $650 million-$660 million) and non-GAAP sales outside the United States to be at least $210 million (down from the previous band of $235 million-$240 million).
Non-GAAP sales in the third quarter are anticipated to be at least $190 million. The Zacks Consensus Estimate for the same stands at 238.4 million.
In the third quarter, non-GAAP sales inside the United States are expected to be at least $135 million and non-GAAP sales outside the United States to be at least $55 million.
Our Take
Tandem Diabetes exited the second quarter of 2023 on a mixed note with better-than-expected earnings and a revenue miss. The company experienced nearly $2 million in sales headwinds in the second quarter related to the transition, which mostly impacted supply sales.
Moreover, a higher operating loss in the quarter is concerning. A slash in the earlier provided guidance is a major concern for investors.
Meanwhile, TNDM made new product innovations, including the rollout of Tandem Source, preparing for the launch of two new sensor integrations and receiving FDA clearance for Tandem Mobi. The company witnessed a record installed base globally for the t:slim X2 insulin pump, which is encouraging. The product integrated with the latest CGM technologies is set to be available this fall through a scaled launch in the United States. An improvement in the gross margin appears promising too.
Zacks Rank and Key Picks
Tandem Diabetes currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30822.0 | 2023-08-04 00:00:00 UTC | Does Abbott Laboratories' Dividend Make It a Buy? | ABT | https://www.nasdaq.com/articles/does-abbott-laboratories-dividend-make-it-a-buy | nan | nan | When you're in the market for dividend income, it's important to keep your eye on the long term. An attractive payout today isn't worth much if the company might be forced to reduce or cut its dividend down the road.
On the other hand, seasoned businesses like medical devices maker Abbott Laboratories (NYSE: ABT) have a track record of paying investors for decades on end without flinching. But is that enough to make Abbott shares worth a purchase today? Let's take a look at the underlying business and decide.
Hard to find a payout with a stronger track record
There are two crucial factors for determining whether Abbott is worth buying for its dividend income: growth and sustainability. Abbott's dividend has grown like clockwork, with a most impressive 51-year history of annual increases. As of late July, its annual dividends per share have grown by an average of 7.4% per year.
To accomplish that result, the company competes in a huge array of healthcare markets -- including the banal (like its Pedialyte hydration products) and the indispensable (like its cardiac stents and pacemakers).
In the second quarter, the company brought in $10 billion in revenue, down by about 11% from a year prior. Management attributes the decline to falling demand for its coronavirus rapid diagnostic tests, but expects that its many other segments will make up for the difference soon enough.
And there's reason to believe management is right, given that the business has successfully invested in research and development (R&D) to come up with new in-demand products for decades. Wall Street analysts see it bringing in revenue of nearly $42 billion next year while remaining solidly profitable. And over the last 10 years, its quarterly revenue rose by nearly 107% -- not very fast, but consistently in the correct direction nonetheless.
With a payout ratio of around 58% of its earnings, the stock is extremely likely to continue paying its dividend at the current pace. And as a crucial supplier to the healthcare sector, Abbott is big enough to easily weather declines in individual segments, even when those declines are sharp, as with its coronavirus tests.
In other words, Abbott Labs doesn't necessarily have a competitive advantage in any single market, but it has so many different markets to compete in that it's quite unlikely to be a loser in all of them, or even more than half. Still, it's important to note that the pace of its dividend hikes isn't very quick, so you'll need to hold your shares for a very long time to generate much in the way of passive income.
Don't get your hopes up for growth
There are a couple of catches with buying Abbott for its dividends. That includes its forward dividend yield, which at 1.8% is only a touch above the market's average.
That means if you wanted to make $1,000 in annual passive income, you would need to invest around $55,555, which is a large sum that's far more than most investors have on hand. Of course, if you're willing to invest a lot less up front and do a series of purchases over a few years, that wouldn't be an unmanageable sum to invest, but it's still a barrier.
The second catch is that as a gargantuan global conglomerate, the company isn't capable of growing very quickly. Even when it decides to enter markets where growth is likely to be faster than its average, as with its newer continuous glucose monitors (CGMs) for diabetes management, it takes a truly colossal amount of revenue and earnings to make any kind of dent in the top or bottom lines.
But if it doesn't bother you that you'll need to invest consistently in this company over time to build up a decent base of dividend income, and if it doesn't bother you that rapid growth is probably never coming, Abbott is a decent option to buy. It's fairly resilient to risks by virtue of its size and diversification, and it shouldn't be breaking its long dividend-hiking streak anytime soon.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On the other hand, seasoned businesses like medical devices maker Abbott Laboratories (NYSE: ABT) have a track record of paying investors for decades on end without flinching. To accomplish that result, the company competes in a huge array of healthcare markets -- including the banal (like its Pedialyte hydration products) and the indispensable (like its cardiac stents and pacemakers). Even when it decides to enter markets where growth is likely to be faster than its average, as with its newer continuous glucose monitors (CGMs) for diabetes management, it takes a truly colossal amount of revenue and earnings to make any kind of dent in the top or bottom lines. | On the other hand, seasoned businesses like medical devices maker Abbott Laboratories (NYSE: ABT) have a track record of paying investors for decades on end without flinching. But is that enough to make Abbott shares worth a purchase today? Hard to find a payout with a stronger track record There are two crucial factors for determining whether Abbott is worth buying for its dividend income: growth and sustainability. | On the other hand, seasoned businesses like medical devices maker Abbott Laboratories (NYSE: ABT) have a track record of paying investors for decades on end without flinching. Hard to find a payout with a stronger track record There are two crucial factors for determining whether Abbott is worth buying for its dividend income: growth and sustainability. But if it doesn't bother you that you'll need to invest consistently in this company over time to build up a decent base of dividend income, and if it doesn't bother you that rapid growth is probably never coming, Abbott is a decent option to buy. | On the other hand, seasoned businesses like medical devices maker Abbott Laboratories (NYSE: ABT) have a track record of paying investors for decades on end without flinching. Still, it's important to note that the pace of its dividend hikes isn't very quick, so you'll need to hold your shares for a very long time to generate much in the way of passive income. 10 stocks we like better than Abbott Laboratories When our analyst team has a stock tip, it can pay to listen. |
30823.0 | 2023-08-04 00:00:00 UTC | Inari Medical (NARI) Q2 Earnings Top, Revenues Rise Y/Y | ABT | https://www.nasdaq.com/articles/inari-medical-nari-q2-earnings-top-revenues-rise-y-y | nan | nan | Inari Medical, Inc. NARI reported second-quarter 2023 earnings per share (EPS) of 4 cents, which beat the Zacks Consensus Estimate of a loss of 14 cents per share. The company had reported a loss of 19 cents per share in the year-ago period.
Revenue Details
Revenues totaled $119 million, up 28.3% from the prior-year quarter’s figure. The top line outpaced the Zacks Consensus Estimate by 2.3%. Product introductions, higher product adoption and continued U.S. commercial expansion contributed to the improvement.
Q2 Highlights
Inari Medical’s core business was driven by strong procedural growth across both its ClotTriever and FlowTriever product lines. The company derived 34% of its revenues from the sale of ClotTriever products and 66% from the sale of FlowTriever products during the second quarter.
NARI continues to progress well with the launch of Protrieve and InThrill. The company recorded continued adoption of FlowSaver — a device designed to be used with the FlowTriever System to reduce blood loss — in Europe. During the reported quarter, NARI launched two new products — RevCore and T16 Curve — both targeting patients with venous thromboembolism.
The company is expanding its presence globally. Its International business generated revenues of $5.2 million, up 187% year over year and 21% sequentially. The top line was primarily driven by strong performance in Europe.
Margins
Gross profit in the quarter totaled $105.2 million, up 27.7% year over year. As a percentage of revenues, the gross margin was 88.4%, down 40 basis points. Addition of new products to the commercial portfolio drove cost of goods sold.
Research and development expenses amounted to $21.1 million, up 13.5% from the year-ago quarter’s level. Selling, general and administrative expenses totaled $85.6 million, up 17% on a year-over-year basis.
Operating loss amounted to $1.5 million compared with $9.3 million in the year-ago quarter.
Financial Position
The company exited the second quarter with cash, cash equivalents and short-term investments of $337.5 million, up from $328.4 million in the previous quarter.
2023 Revenue Guidance Revised
For 2023, the company now expects revenues in the range of $482-$492 million, up from the previous guidance of $478-$488 million. The Zacks Consensus Estimate for the same is pegged at $483.8 million.
Inari Medical, Inc. Price, Consensus and EPS Surprise
Inari Medical, Inc. price-consensus-eps-surprise-chart | Inari Medical, Inc. Quote
Our Take
Inari Medical exited the second quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark. Apart from treating a large number of patients, the company made substantial progress across all its growth drivers. NARI’s plans to launch several products later this year buoy optimism.
However, contraction in gross margin and the incurrence of operating loss are concerning.
Zacks Rank and Other Stocks to Consider
Currently, Inari Medical sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Inari Medical, Inc. (NARI) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Inari Medical, Inc. (NARI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Inari Medical, Inc. (NARI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Inari Medical, Inc. (NARI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Inari Medical, Inc. (NARI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30824.0 | 2023-08-03 00:00:00 UTC | Cigna (CI) Q2 Earnings Beat on Strong U.S. Commercial Unit | ABT | https://www.nasdaq.com/articles/cigna-ci-q2-earnings-beat-on-strong-u.s.-commercial-unit | nan | nan | The Cigna Group CI reported second-quarter 2023 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate by 2.5%. The bottom line dipped 1.1% year over year. Its shares gained 1.3% in the pre-market trading session, reflecting the outperformance.
Adjusted revenues advanced 7% year over year to $48,616 million in the quarter under review, attributable to strong performances of the Evernorth Health Services and Cigna Healthcare businesses. The top line beat the consensus mark by 3.2%.
However, the quarterly results were partially offset by lack of income from divested businesses and an elevated expense level.
As of Jun 30, 2023, CI’s medical customer base came in at 19.5 million, which rose 9.5% year over year and came higher than our estimate of 19 million. The growth came on the back of an expanding customer base within its U.S. Commercial and Medicare Advantage businesses.
Total benefits and expenses escalated 8% year over year to $46,365 million in the second quarter, higher than our estimate of $44,599.3 million. The adjusted selling, general and administrative (SG&A) expense ratio remained flat year over year at 7.1%.
The Cigna Group Price, Consensus and EPS Surprise
The Cigna Group price-consensus-eps-surprise-chart | The Cigna Group Quote
Segmental Update
Evernorth Health Services: The segment’s adjusted revenues rose 10% year over year to $38,205 million, higher than our estimate of $36,448.6 million. Solid organic growth in specialty and, care delivery and management solutions contributed to the unit’s quarterly performance.
Adjusted operating income on a pretax basis amounted to $1,516 million, which grew 3% year over year in the second quarter and beat our estimate of $1,494.2 million. The metric gained on specialty growth and consistent affordability improvements. Adjusted pre-tax margin deteriorated 20 basis points (bps) year over year to 4%.
Cigna Healthcare: The unit reported adjusted revenues of $12,714 million, which climbed 12% year over year in the quarter under review and outpaced our estimate of $11,818.2 million. Premium rate hikes and a growing customer base aided the segment’s quarterly performance.
However, pre-tax adjusted operating income came in at $1,172 million, which fell 5% year over year but came higher than our estimate of $1,070.1 million. The metric suffered a blow due to increased estimated risk adjustment payable in Cigna’s Individual business and reduced net investment income.
The segment’s medical care ratio (MCR) of 81.2% deteriorated 50 bps year over year at the second-quarter end and matched our estimate.
Financial Position (as of Jun 30, 2023)
Cigna exited the second quarter with cash and cash equivalents of $9,585 million, which soared 61.8% from the 2022-end figure. Total assets of $150 billion increased 4.3% from the figure at 2022 end.
Long-term debt amounted to $28,115 million, which inched up marginally from the figure as of Dec 31, 2022. Short-term debt amounted to $4,618 million.
Shareholders’ equity of $45,445 million grew 1.7% from the 2022-end level.
In the first half of 2023, CI generated cash flow from operations of $7,520 million, which more than doubled from the prior-year comparable period.
Debt-to-capitalization ratio of 41.9% improved 20 bps year over year at the second-quarter end.
2023 Guidance
Concurrent with second-quarter results, management revised its full-year guidance with respect to certain metrics.
Adjusted revenues are currently anticipated to be a minimum of $190 billion, higher from the prior outlook of at least $188 billion. The updated outlook suggests a minimum growth of 5.2% from the 2022 figure.
Adjusted operating income continues to be estimated to be a minimum of $7,360 million in 2023.
Adjusted earnings per share is reaffirmed to stay at a minimum of $24.70, which implies a minimum growth of 6.1% from the 2022 figure.
CI presently forecasts total medical customer growth to be a minimum of 1,400,000 this year, up from the prior outlook of growth of at least 1,300,000.
MCR continues to be anticipated within the 81.5-82.3% band for 2023. The adjusted SG&A expense ratio is estimated to be roughly 7.3%.
Adjusted operating income, on a pretax basis, for the Evernorth Health Services segment continues to be forecasted at a minimum of $6,400 million. Meanwhile, the same for the Cigna Healthcare unit is estimated to be a minimum of $4,425 million.
Operating cash flow is forecasted to be a minimum of $9,500 million, while the earlier view called for the metric to witness a minimum growth of $9,000 million. Earlier, capital expenditures were expected to be around $1,400 million.
Long-Term Targets Reaffirmed
Cigna expects to achieve average annual adjusted earnings per share growth within 10-13% in the long term.
Over the 2022-2026 period, management expects CI to generate operating cash flows of roughly $50 billion.
Zacks Rank
Cigna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate.
Elevance Health reported second-quarter 2023 adjusted net income of $9.04 per share, which outpaced the Zacks Consensus Estimate by 2.5%. The bottom line improved 13.4% year over year. ELV’s operating revenues, which amounted to $43,377 million, rose 12.7% year over year in the quarter under review. The top line surpassed the consensus mark by 4.5%. Medical membership of Elevance Health totaled around 48 million as of Jun 30, 2023, which increased 2% year over year in the second quarter. Overall premiums grew 10.6% year over year to $36,589 million in the quarter under review.
Intuitive Surgical reported second-quarter 2023 adjusted earnings per share of $1.42, which beat the Zacks Consensus Estimate of $1.32 by 7.6%. The bottom line improved 24.6% year over year. ISRG reported revenues of $1.76 billion, up 15.4% from the prior-year quarter’s number. On a constant currency basis, revenues were up 17% year over year. The top line beat the consensus estimate by 1.4%. Adjusted operating income totaled $617.6 million, up 16.3% year over year. Revenues at the Instruments & Accessories segment totaled $1.08 billion, indicating a year-over-year improvement of 20.2%.
Abbott Laboratories reported second-quarter 2023 adjusted earnings of $1.08 per share, which topped the Zacks Consensus Estimate by 3.8%. However, the adjusted figure declined from the prior-year quarter’s levels by 24.5%. Second-quarter worldwide sales of $9.98 billion were down 11.4% year over year on a reported basis. The top line exceeded the consensus estimate by 2.9%. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Also, the adjusted operating margin contracted 517 bps to 20.4%. Established Pharmaceuticals segment’s product sales increased 5.2% on a reported basis (up 12.6% on an organic basis) to $1.29 billion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. | Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Cigna Group (CI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30825.0 | 2023-08-03 00:00:00 UTC | PacBio (PACB) Tops on Q2 Earnings, Raises FY23 Revenue View | ABT | https://www.nasdaq.com/articles/pacbio-pacb-tops-on-q2-earnings-raises-fy23-revenue-view | nan | nan | Pacific Biosciences of California, Inc. PACB, popularly known as PacBio, delivered an adjusted loss per share of 26 cents in second-quarter 2023, narrower than the year-ago loss and the Zacks Consensus Estimate of a loss of 34 cents per share.
The company’s GAAP loss per share was 28 cents in the quarter, narrower than the year-ago loss of 32 cents.
Revenues in Detail
PacBio registered revenues of $47.6 million in the second quarter, up 34.1% year over year. The figure surpassed the Zacks Consensus Estimate by 17.9%.
The top line benefited from the year-over-year uptick in product revenues.
Geographical Analysis
PacBio’s revenues from the Americas were $24 million, up 10% year over year. This figure outpaced our second-quarter projection of $21.2 million.
In the Asia-Pacific region, PacBio recorded revenues of $12.9 million, reflecting a 61% uptick year over year. Strong performances from all regions were recorded, along with China achieving record revenues in the quarter. This figure compares to our second-quarter projection of $10.7 million.
Europe, the Middle East and Africa region registered revenues of $10.7 million, which grew 87% year over year. This figure compares to our second-quarter projection of $7.2 million.
Segmental Analysis
Product revenues amounted to $43.7 million, up 44.7% from the prior-year quarter. The figure outperformed our estimate of $33.9 million.
PacBio shipped 47 sequencing systems in the second quarter, including 45 Revio systems and 2 Sequel IIe systems. This brought the company’s installed base to 77 Revio systems as of Jun 30, 2023.
Instrument revenues were $29.9 million, up 91.7% year over year. This primarily resulted from the continued momentum of Revio systems in the quarter. Our model estimated $21.3 million for this metric.
Consumables revenues for the second quarter of 2023 were $13.7 million, down 5.7% from the prior-year quarter. Our projection was $12.6 million.
Service and other revenues totaled $3.9 million, down 25.9% year over year. This figure lagged our projection of $5.3 million.
Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise
Pacific Biosciences of California, Inc. price-consensus-eps-surprise-chart | Pacific Biosciences of California, Inc. Quote
Margin Trend
In the quarter under review, PacBio’s adjusted gross profit fell 3.9% to $15.7 million. Adjusted gross margin contracted a huge 1311 basis points to 33.1%.
Sales, general and administrative expenses rose 3.4% to $40.6 million. Research and development expenses decreased 8.3% year over year to $46.2 million. Adjusted total operating expenses of $86.7 million declined 3.2% year over year.
Adjusted total operating loss was $71 million in the reported quarter compared with the prior-year quarter’s $73.2 million.
Financial Position
PacBio exited second-quarter 2023 with cash, cash equivalents and investments (excluding short-term and long-term restricted cash) of $829.9 million compared with $874.9 million at the end of first quarter.
Guidance
PacBio has raised its revenue outlook for 2023.
The company now expects to achieve revenues in the range of $185 million-$190 million (representing growth rate of 44-48% from 2022 figures), up from the earlier guided range of $170-$185 million (indicating growth of 33-44% from 2022 numbers). The Zacks Consensus Estimate is pegged at $177.3 million.
Our Take
PacBio exited the second quarter of 2023 with better-than-expected results. PACB saw a robust increase in its overall top line, including strong Product and Instrument revenues. Solid geographical performances were also encouraging. Continued strong prospects in the Revio and Onso systems, with customers placing orders for these, looked promising for the stock.
This month, PacBio announced its entry into an agreement to acquire Apton Biosystems with plans to integrate its Sequencing by Binding short-read chemistry with Apton's high throughput instrument. In June, PacBio’s Revio was implemented by Bioscientia. These raise optimism about the stock.
Yet, dismal bottom-line results were disappointing. The year-over-year fall in Consumables revenues and Service and other revenues was concerning. The contraction of adjusted gross margin added to the woes. The year-over-year operating loss was another area of concern.
Zacks Rank and Key Picks
PacBio currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted earnings per share (EPS) of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Integer Holdings reported second-quarter 2023 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 15.2%. Revenues of $400 million surpassed the Zacks Consensus Estimate by 8.9%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Pacific Biosciences of California, Inc. (PACB) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Pacific Biosciences of California, Inc. (PACB) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Pacific Biosciences of California, Inc. (PACB) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Pacific Biosciences of California, Inc. (PACB) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30826.0 | 2023-08-03 00:00:00 UTC | Glaukos (GKOS) Q2 Earnings Beat Estimates, Revenues Rise Y/Y | ABT | https://www.nasdaq.com/articles/glaukos-gkos-q2-earnings-beat-estimates-revenues-rise-y-y | nan | nan | Glaukos Corporation GKOS reported a second-quarter 2023 adjusted loss of 55 cents per share, which was 3.5% narrower than the Zacks Consensus Estimate of a loss of 57 cents.The figure was narrower than the year-ago quarter’s adjusted loss of 83 cents.
The GAAP loss per share was 68 cents compared with the prior-year quarter’s loss of 96 cents.
Revenue Details
Glaukos registered revenues of $80.4 million in the second quarter, up 9% year over year on a reported basis and 11% at constant currency. The figure also surpassed the Zacks Consensus Estimate by 8%.
Quarter in Detail
The company recorded net sales of $61.9 million and $18.5 million for Glaucoma and Corneal Health, which were up 10% and 11% year over year, respectively.
Margin Trend
Gross profit increased 9.9% to $60.3 million in the reported quarter. The gross margin was flat at 75%.
Selling, general and administrative expenses rose 6% to $53.1 million. Research and development expenses totaled $33.2 million, up 5% year over year. Total operating expenses were $88.8 million, up 118% from that recorded in the prior-year period.
The operating loss amounted to $29.1 million compared with the total operating loss of $36.8 million in the year-ago period. The adjusted operating loss was $22.8 million, narrower than the year-ago quarter’s loss of $30.4 million.
Financial Update
Glaukos exited second-quarter 2023 with cash and cash equivalents, and short-term investments of $310 million compared with $325 million at the end of the last reported quarter.
Glaukos Corporation Price, Consensus and EPS Surprise
Glaukos Corporation price-consensus-eps-surprise-chart | Glaukos Corporation Quote
2023 Guidance
The company updated its guidance for 2023 revenues. It expects net sales of $304-$308 million compared with the previously stated $295-$300 million, reflecting improving currency translational rates.
Our Take
Glaukos exited the second quarter of 2023 with decent results, wherein revenues and earnings beat estimates. The company’s management is excited regarding its return to top-line growth in the reported quarter.
GKOS has launched several products, including iPrime, iAccess and iStent, in the past few quarters, which are aiding its revenue growth. The company has been focused on delivering improved outcomes for patients suffering from chronic eye diseases. It does so by continuing to develop a pipeline of novel, dropless platform technologies designed to meaningfully advance the standard of care.
One of the advanced pipeline candidates, iDose TR, has been successfully tested in a phase III study. Glaukos has filed a new drug application with the FDA in February and a decision is expected later this year. The company stated that the targeted population is 3 million in the United States every year.
However, GKOS’ operating loss in the reported quarter raised our apprehension. Its operation in a stiff competitive market is also worrisome.
Zacks Rank and Stocks to Consider
Currently, Glaukos carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy) at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
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Glaukos Corporation (GKOS) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Glaukos Corporation (GKOS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Glaukos Corporation (GKOS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Glaukos Corporation (GKOS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Glaukos Corporation (GKOS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30827.0 | 2023-08-03 00:00:00 UTC | Stryker lifts annual profit forecast as demand for its devices picks up | ABT | https://www.nasdaq.com/articles/stryker-lifts-annual-profit-forecast-as-demand-for-its-devices-picks-up | nan | nan | Aug 3 (Reuters) - Stryker SYK.N raised its annual profit forecast on Thursday as the medtech company sees strong demand for its medical and surgical devices, aided by a post-pandemic pickup in surgical procedure volumes at hospitals.
The company also beat Wall Street estimates for profit in the second quarter and became the latest in line to benefit from the recent boost to medtech businesses. Larger rivals like Abbott LaboratoriesABT.N and Johnson & JohnsonJNJ.N have also beaten expectations, driven by the demand for medical devices after the pandemic.
In the second quarter, sales at Stryker's medical surgery and neurotechnology unit rose 12.2%, to $2.9 billion, while sales in the orthopedics and spine segment rose nearly 10%, to $2.14 billion.
The company had earlier said supply-chain pressures are gradually improving and it expects pricing to be relatively neutral for the year.
The joint-implant maker now expects a profit of $10.25 to $10.45 per share, compared to its prior forecast of between $10.05 and $10.25 per share.
Analysts were expecting a profit of $10.16 for the year, according to Refinitiv IBES data.
Excluding items, Stryker reported a profit of $2.54 per share for the quarter ended June 30, beating analysts' estimate of $2.38 per share, according to Refinitiv data.
The company's revenue in the second quarter rose 11.2%, to $5.0 billion, above analysts' average estimates of $4.83 billion.
(Reporting by Mariam Sunny in Bengaluru; Editing by Pooja Desai)
((Mariam.ESunny@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Larger rivals like Abbott LaboratoriesABT.N and Johnson & JohnsonJNJ.N have also beaten expectations, driven by the demand for medical devices after the pandemic. The company also beat Wall Street estimates for profit in the second quarter and became the latest in line to benefit from the recent boost to medtech businesses. The company had earlier said supply-chain pressures are gradually improving and it expects pricing to be relatively neutral for the year. | Larger rivals like Abbott LaboratoriesABT.N and Johnson & JohnsonJNJ.N have also beaten expectations, driven by the demand for medical devices after the pandemic. Aug 3 (Reuters) - Stryker SYK.N raised its annual profit forecast on Thursday as the medtech company sees strong demand for its medical and surgical devices, aided by a post-pandemic pickup in surgical procedure volumes at hospitals. Excluding items, Stryker reported a profit of $2.54 per share for the quarter ended June 30, beating analysts' estimate of $2.38 per share, according to Refinitiv data. | Larger rivals like Abbott LaboratoriesABT.N and Johnson & JohnsonJNJ.N have also beaten expectations, driven by the demand for medical devices after the pandemic. Aug 3 (Reuters) - Stryker SYK.N raised its annual profit forecast on Thursday as the medtech company sees strong demand for its medical and surgical devices, aided by a post-pandemic pickup in surgical procedure volumes at hospitals. In the second quarter, sales at Stryker's medical surgery and neurotechnology unit rose 12.2%, to $2.9 billion, while sales in the orthopedics and spine segment rose nearly 10%, to $2.14 billion. | Larger rivals like Abbott LaboratoriesABT.N and Johnson & JohnsonJNJ.N have also beaten expectations, driven by the demand for medical devices after the pandemic. Analysts were expecting a profit of $10.16 for the year, according to Refinitiv IBES data. Excluding items, Stryker reported a profit of $2.54 per share for the quarter ended June 30, beating analysts' estimate of $2.38 per share, according to Refinitiv data. |
30828.0 | 2023-08-03 00:00:00 UTC | Surmodics (SRDX) Q3 Earnings Top Estimates, FY23 View Up | ABT | https://www.nasdaq.com/articles/surmodics-srdx-q3-earnings-top-estimates-fy23-view-up | nan | nan | Surmodics, Inc. SRDX delivered adjusted earnings per share (EPS) of 52 cents in the third quarter of fiscal 2023, against the year-ago quarter’s loss of 34 cents and the Zacks Consensus Estimate of a loss of 46 cents per share.
GAAP EPS for the quarter was 52 cents, against the year-earlier loss of 41 cents per share.
Revenues in Detail
Surmodics registered revenues of $52.5 million in the fiscal third quarter, up 111.2% year over year. The figure surpassed the Zacks Consensus Estimate by 96.6%.
The top line was boosted by solid year-over-year product sales growth from the Medical Device business. However, this was partially offset by a decrease in Surmodics’ In Vitro Diagnostics (IVD) revenues.
Segmental Analysis
Surmodics operates via two reportable segments — Medical Device and IVD.
In the reported quarter, sales at the Medical Device segment summed $46 million, up 162.5% from the year-ago quarter on the back of a $27 million milestone payment for SurVeil drug-coated balloon (DCB) and strong underlying performance (including product sales growth of 38% year over year driven primarily by sales of Pounce and Sublime products). This figure compares to our Medical Device fiscal third-quarter revenue projections of $18.6 million.
In the quarter under review, IVD sales declined by 11.7% to $6.5 million, primarily resulting from active management of inventory levels by certain customers. This figure compares to our IVD fiscal third-quarter revenue projections of $8.1 million.
The company also derives revenues from three primary sources — Product sales, Royalties and license fees and Research, development and other fees.
In the quarter under review, Product sales were $15.7 million, up 12.6% from the prior-year quarter. This figure compares to our fiscal third-quarter revenue projections of $15.9 million.
Royalties and license fees revenues totaled $34.2 million, up 288.3% from the prior-year quarter. This figure compares to our fiscal third-quarter revenue projections of $9.5 million.
Research, development and other revenues were $2.7 million, up 24.4% year over year. This figure compares to our fiscal third-quarter revenue projections of $1.3 million.
Surmodics, Inc. Price, Consensus and EPS Surprise
Surmodics, Inc. price-consensus-eps-surprise-chart | Surmodics, Inc. Quote
Margin Trend
In the quarter under review, Surmodics’ gross profit surged 131.1% to $45.6 million. Gross margin expanded 750 basis points to 86.8%.
Selling, general & administrative expenses rose 0.2% to $12.9 million. Research and development expenses declined 13.4% year over year to $11.2 million. Adjusted operating expenses of $24.1 million declined 6.7% year over year.
Adjusted operating profit totaled $21.5 million against the prior-year quarter’s adjusted operating loss of $6.1 million.
Financial Position
Surmodics exited third-quarter fiscal 2023 with cash and cash equivalents of $44.6 million compared with $19.2 million at the fiscal second-quarter end. The company ended third-quarter fiscal 2023 with total debt of $29.4 million compared with $29.3 million at the fiscal second-quarter end.
Cumulative net cash provided by operating activities at the end of third-quarter fiscal 2023 was $9.3 million compared with net cash used in operating activities of $14.7 million a year ago.
Fiscal 2023 Guidance
Surmodics has upped its full-year financial outlook.
The company now projects fiscal year revenues to be in the range of $130 million-$132 million, representing an increase of 30-32% over the comparable prior-year period. This is up from the previous outlook of $103 million-$106 million, representing an increase of 3-6% over the comparable prior-year period.
Adjusted loss per share for fiscal 2023 is now expected within the range of 29 cents-14 cents, narrowed from the prior outlook of $1.98-$1.68.
Our Take
Surmodics exited the third quarter of fiscal 2023 with better-than-expected results. The solid uptick in the overall top line and bottom line was impressive. The company registered robust revenues from its Medical Device segment and its primary sources, which was encouraging. During the quarter, Surmodics witnessed strong contributions from sales of its Pounce and Sublime products, indicating their continued solid demand. This looks promising for the stock. Gross margin expansion bodes well for Surmodics.
In April, Surmodics announced the first successful patient use of the Sublime radial access microcatheter. The same month, the company announced the enrolment of the first patient in PROWL, the Pounce Thrombectomy System Retrospective Registry.
In June, Surmodics received the FDA’s 510(k) clearance for its Pounce LP (Low Profile) Thrombectomy System and the FDA premarket approval for its SurVeil DCB. These raise our optimism about the stock.
However, the company’s lower revenues from the IVD segment were discouraging. Surmodics’ operation in a competitive and evolving field and reliance on third parties also raise our apprehension.
Zacks Rank and Other Key Picks
Surmodics currently sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Integer Holdings reported second-quarter 2023 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 15.2%. Revenues of $400 million surpassed the Zacks Consensus Estimate by 8.9%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Surmodics, Inc. (SRDX) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Surmodics, Inc. (SRDX) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Surmodics, Inc. (SRDX) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Surmodics, Inc. (SRDX) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30829.0 | 2023-08-03 00:00:00 UTC | BD (BDX) Q3 Earnings Surpass Estimates, Margins Contract | ABT | https://www.nasdaq.com/articles/bd-bdx-q3-earnings-surpass-estimates-margins-contract | nan | nan | Becton, Dickinson and Company BDX, popularly known as BD, delivered adjusted earnings per share (EPS) of $2.96 in the third quarter of fiscal 2023, up 11.3% year over year. The figure surpassed the Zacks Consensus Estimate by 2.4%.
The adjustments include expenses related to purchase accounting adjustments and integration costs, among others.
GAAP EPS for the quarter was $1.36, reflecting an improvement of 6.3% from the year-earlier figure.
Revenues in Detail
BD registered revenues of $4.88 billion in the fiscal third quarter, up 5.1% year over year. The figure surpassed the Zacks Consensus Estimate by 1%.
At constant exchange rate (CER), revenues climbed 6.3%.
The top-line improvement primarily resulted from strength in BD Medical and BD Interventional segments. However, the overall top-line improvement was partially offset by a fall in worldwide COVID-19-only diagnostic testing revenues.
Base revenues were $4.87 billion in the fiscal third quarter, up 6.7% year over year on a reported basis and 7.9 % at CER.
Base organic revenue growth for the fiscal third quarter was 5.1% on a reported basis and 6.3% at CER.
Segment Details
BD’s operations consist of three worldwide business segments — BD Medical, BD Life Sciences and BD Interventional.
For the quarter under review, BD Medical reported worldwide revenues of $2.43 billion, up 11.1% from the year-ago quarter on a reported basis and 12.2% at CER. Per management, this upside can be attributed to strong double-digit growth in Medication Management Solutions and Pharmaceutical Systems business units. This compares to our projection of fiscal third-quarter segmental revenues of $2.31 billion.
Worldwide revenues in the BD Life Sciences segment totaled $1.23 billion, down 6.3% year over year on a reported basis and down 5% at CER. The decline resulted primarily from the segment's flat base business and Integrated Diagnostic Solutions (IDS) unit’s fall in COVID-only diagnostic testing revenues. The fiscal third-quarter revenues compare to our estimate of $1.32 billion.
The segment's base business performance reflects high-single-digit growth in the Biosciences business unit that was offset by a decline in base IDS revenues due to the comparison to higher prior-year flu/COVID respiratory testing revenues and the impact of U.S. distributor de-stocking in Specimen Management.
BD Interventional segment generated worldwide revenues of $1.22 billion, up 6.7% from the year-ago quarter on a reported basis and 8.1% at CER. This was owing to strong performance across the segment. The fiscal third-quarter revenues compare to our estimate of $1.16 billion.
Geographic Results
In the third quarter of fiscal 2023, revenues in the United States improved 4.9% to $2.77 billion. This compares to our estimate of $2.75 billion.
International revenues grossed $2.11 billion, up 5.4% from the year-ago quarter on a reported basis and 8.2% at CER. This compares to our estimate of $2.03 billion.
Becton, Dickinson and Company Price, Consensus and EPS Surprise
Becton, Dickinson and Company price-consensus-eps-surprise-chart | Becton, Dickinson and Company Quote
Margin Analysis
In the quarter under review, BD’s gross profit rose 1.6% to $2.10 billion. However, the gross margin contracted 149 basis points (bps) to 43.1%.
We had projected 44.7% of gross margin for the fiscal third quarter.
Selling and administrative expenses increased 3.6% to $1.19 billion. Research and development expenses decreased 2.9% year over year to $306 million. Adjusted operating expenses of $1.49 billion increased 2.2% year over year.
Adjusted operating profit totaled $604 million, reflecting a 0.2% uptick from the prior-year quarter. The adjusted operating margin in the fiscal third quarter contracted 61 bps to 12.4%.
Financial Position
BD exited the third quarter of fiscal 2023 with cash and cash equivalents and short-term investments of $931 million compared with $1.99 billion at the fiscal second-quarter end. Total debt (including current debt obligations) at the end of third-quarter fiscal 2023 was $16.78 billion compared with $18.22 billion at the fiscal second-quarter end.
Cumulative net cash flow from continuing operating activities at the end of third-quarter fiscal 2023 was $1.67 billion compared with $1.49 million a year ago.
Meanwhile, BD has a consistent dividend-paying history, with its five-year annualized dividend growth being 4.27%.
Fiscal 2023 Guidance
BD has revised its financial outlook for fiscal 2023.
BD now projects its full fiscal year revenues to be $19.3 billion compared with the earlier-provided projections of $19.2 billion-$19.3 billion. The Zacks Consensus Estimate for revenues is pegged at $19.29 billion.
The revenue projections for fiscal 2023 now include base-business revenue growth at CER of 6.8-7.1%, up from the earlier expectations of 6.5-7%. Base organic revenue growth is now expected to be 5.5-5.8%, up from the previously announced outlook of 5.25-5.75%.
For the full fiscal year, adjusted EPS is continued to be anticipated in the range of $12.10-$12.32. The Zacks Consensus Estimate for the same is pegged at $12.21.
Our Take
BD exited the third quarter of fiscal 2023 with better-than-expected results. Solid top-line and bottom-line results, along with improvements in the overall base revenues, were impressive. Robust performances by the majority of its segments and both geographic regions were encouraging. Strength in BD’s segment’s business units during the reported quarter was also promising.
BD received the FDA’s 510(k) clearance for the BD Respiratory Viral Panel for BD MAX System (August), the updated BD Alaris Infusion System (July) and the new BD Kiestra Methicillin-resistant Staphylococcus aureus imaging application that uses artificial intelligence (July). BD also launched a slew of products, like the worldwide commercial launches of BD FACSDuet Premium Sample Preparation System (June) and BD FACSDiscover S8 Cell Sorter (May). The company also announced expanded customer availability of BD PosiFlush SafeScrub in May. These developments also raise our optimism.
BD’s inking of a definitive agreement to sell its Surgical Instrumentation platform to STERIS to simplify its product portfolio and manufacturing network also looks promising.
However, the year-over-year decline in BD Life Sciences revenues was worrying. Lower COVID-only testing revenues in the quarter were discouraging from a business perspective. The contraction of both margins also does not bode well.
Zacks Rank and Other Key Picks
BD currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Integer Holdings reported second-quarter 2023 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 15.2%. Revenues of $400 million surpassed the Zacks Consensus Estimate by 8.9%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30830.0 | 2023-08-03 00:00:00 UTC | McKesson (MCK) Q1 Earnings Beat Estimates, U.S. Sales Strong | ABT | https://www.nasdaq.com/articles/mckesson-mck-q1-earnings-beat-estimates-u.s.-sales-strong | nan | nan | McKesson Corporation MCK reported fiscal first-quarter 2024 adjusted earnings per share (EPS) of $7.19, which significantly beat the Zacks Consensus Estimate of $5.85 by 24.3%. The bottom line improved 24.7% on a year-over-year basis.
GAAP EPS was $7.02, up 33.7% from the year-ago quarter’s level.
Revenue Details
Revenues of $74.48 billion beat the Zacks Consensus Estimate by 6.5%. The top line also increased 10.9% year over year, reflecting strong growth in the United States. This was partially offset by lower international sales due to divestitures of its European businesses.
Q1 Segmental Analysis
Revenues at the U.S. Pharmaceutical segment totaled $67.16 billion, up 17.9% year over year. Per management, the upside was primarily driven by higher volume of specialty products, including an increase in volume from retail national account customers. However, branded-to-generic conversions partially offset the upside.
The U.S. Pharmaceutical and Specialty Solutions segment reported an adjusted operating profit of $771 million, up 8.4% from the prior-year quarter’s level. This was due to growth in the distribution of specialty products to providers and health systems, and increased contributions from our generics program, partially mitigated by lower demand for COVID-19 vaccine distribution. The adjusted metric for the segment was up 14%, excluding the impact of the abovementioned vaccine’s distribution.
At the International segment, revenues amounted to $3.47 billion, down 34.8% year over year. This was due to divestitures of McKesson’s European businesses.
Adjusted operating profit at the segment totaled $90 million, down 45.6% from the year-ago quarter’s figure.
Revenues at the Medical-Surgical Solutions segment totaled $2.61 billion, up 0.7% year over year. Sales were driven by growth in the extended and primary care, and specialty pharmaceuticals. However, this was partially offset by lower COVID-19-related sales.
The Medical-Surgical segment reported an adjusted operating profit of $235 million, down 12.3% year over year. Excluding the impact of COVID-related items, the adjusted metric was up 7%.
Revenues at the Prescription Technology Solutions segment totaled $1.24 billion, up 16.7% from that recorded a year ago. The improvement can be attributed to higher technology services revenues and an increase in prescriptions from third-party logistics.
Adjusted operating profit amounted to $223 million at the Prescription Technology Solutions segment, up 35.2% from the prior-year quarter’s level.
Margins
Gross profit in the reported quarter was $3.07 billion, flat on a year-over-year basis. The figure accounted for 4.1% of net revenues.
The company reported an operating income of $1.1 billion, up 6.2% from the year-ago quarter’s figure. Operating margin accounted for 1.5% of net revenues.
Financial Update
Cash and cash equivalents totaled $2.64 billion compared with $4.68 billion in the previous quarter.
Cumulative net cash used in operating activities amounted to $1.05 billion, up from $941 million recorded in the year-ago period.
Fiscal 2024 Guidance
McKesson raised its adjusted earnings guidance for fiscal 2024. It now projects adjusted EPS in the range of $26.55-$27.35, up from the previous guidance of $26.10-$26.90. The Zacks Consensus Estimate for the same is pegged at $26.51.
McKesson Corporation Price, Consensus and EPS Surprise
McKesson Corporation price-consensus-eps-surprise-chart | McKesson Corporation Quote
Summing Up
McKesson exited the fiscal first quarter of 2024 on a strong note, wherein both earnings and revenues beat their respective estimates. The outperformance reflects strong demand for its pharmaceuticals and prescription technology solutions.
However, lower COVID-19-related sales and divesture of European businesses hurt top and bottom-line growth for Medical-Surgical Solutions and International segments, respectively.
The company expects the impact of COVID-related sales and divesture to be lower in fiscal 2024. A strong earnings outlook for the year raises optimism.
However, price fluctuation of generic pharmaceuticals and stiff competition in the MedTech space remain as headwinds.
Zacks Rank and Other Key Picks
McKesson currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank #2 at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
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It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30831.0 | 2023-08-03 00:00:00 UTC | Fresenius Medical (FMS) Q2 Earnings and Revenues Beat Estimates | ABT | https://www.nasdaq.com/articles/fresenius-medical-fms-q2-earnings-and-revenues-beat-estimates | nan | nan | Fresenius Medical Care AG & Co. KGaA FMS reported second-quarter 2023 adjusted earnings per share (EPS) of 32 cents, which beat the Zacks Consensus Estimate of 24 cents by 55.6%. The bottom line, however, declined 33.3% year over year.
Revenue Details
Revenues of $5.25 billion outpaced the Zacks Consensus Estimate by 1.2%. The company reported revenue growth of 1.4% year over year and 6% at constant currency (cc) as well as on an organic basis.
Segmental Details
In the second quarter, Fresenius Medical reported through two segments — Care Delivery and Care Enablement.
Care Delivery revenues rose 1% on a year-over-year basis and 6% at cc as well as on an organic basis.
Care Enablement revenues remained flat year over year, and up 6% at cc as well as on an organic basis.
New Operating Model
Fresenius Medical implemented a new operating model during the first quarter and started reporting under two new segments — Care Delivery and Care Enablement. This was a part of its transformation plan to return to a sustainable growth path.
Previously, the company used to report under Health Care Products and Health Care Services segments. The Care Delivery segment primarily consists of products earlier reported under the Health Care Services segment.
During the reported quarter, only 1.1% of Care Delivery revenues came from Health care products. Care Enablement generated more than 71.8% of its revenues from Health care products and the rest from Inter-segment sales — products that are transferred between the operating segments at fair market value.
2023 Outlook
Fresenius Medical maintained its outlook for revenues in 2023. The company expects revenues to grow at a low-to-mid single digit percentage rate. However, it lowered its operating income guidance following favorable earnings growth in the first half of 2023. The metric is now estimated to remain flat or decline by up to a low single-digit percentage rate (previously flat or down up to a high single-digit percentage rate).
Fresenius Medical Care AG & Co. KGaA Price, Consensus and EPS Surprise
Fresenius Medical Care AG & Co. KGaA price-consensus-eps-surprise-chart | Fresenius Medical Care AG & Co. KGaA Quote
Summing Up
FMS exited the second quarter on a decent note. Its results reflected improving treatment volumes as well as a stabilizing labor environment in the United States. A potential continuation of improvement in these two key factors will be beneficial for the company in the rest of 2023.
Overall price improvements also supported growth in the Care Enablement segment. While U.S. revenues continued to be hurt by FX impact, international sales improved.
Meanwhile, FMS’ newly implemented operating model led to operational improvements. The bottom line was hurt by inflationary cost increases in energy, material and personnel. These headwinds are likely to improve over the year that also gets reflected in the company’s operating outlook.
Zacks Rank and Stocks to Consider
Currently, Fresenius Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30832.0 | 2023-08-03 00:00:00 UTC | NuVasive (NUVA) Q2 Earnings Meet Estimates, Margins Down | ABT | https://www.nasdaq.com/articles/nuvasive-nuva-q2-earnings-meet-estimates-margins-down | nan | nan | NuVasive, Inc. NUVA delivered adjusted earnings per share (EPS) of 56 cents in the second quarter of 2023, up 19.1% year over year. The figure came in line with the Zacks Consensus Estimate.
One-time adjustments include expenses associated with certain amortization, litigation settlement, business transition costs and non-cash acquisition-related foreign currency impacts, among others.
GAAP EPS came in at 14 cents against the year-ago period’s loss of 2 cents per share.
Total Revenues
Revenues in the second quarter totaled $317.8 million, up 2.4% year over year on a reported basis and 3.1% at a constant exchange rate or CER. However, the top line missed the Zacks Consensus Estimate by 1.8%.
The performance in the quarter under review was driven by ongoing strong commercial execution, the further adoption of new products and continued procedure growth.
NuVasive, Inc. Price, Consensus and EPS Surprise
NuVasive, Inc. price-consensus-eps-surprise-chart | NuVasive, Inc. Quote
Geographical & Segmental Details
NuVasive reports under two distinct product lines — Spinal Hardware and Surgical Support.
In the reported quarter, the U.S. Spinal Hardware segment rose 5.5% year over year to $174.1 million. The Cervical business continued its proven and ongoing track record of achieving greater than 20% growth, led by the simplified cervical disc and Reliance Cervical.
The U.S. Surgical Support segment’s revenues were $65.1 million, a decrease of 9.3% compared to the previous year’s quarter. The decline resulted from lower biologics attachment rates as well as a payer mix in NuVasive Clinical Services or NCS.
International net sales for the second quarter were $78.6 million, representing a year-over-year increase of 6.8% (up 9.8% at CER). The organic growth was driven by Core Spine and led by double-digit growth in Europe, as well as solid contributions from Latin America and Asia Pacific.
Margin Details
In the reported quarter, the gross profit rose 1.6% year over year to $228.3 million. The gross margin contracted 53 basis points (bps) to 71.8%.
SG&A expenses rose 2% year over year to $163.9 million. R&D expenses rose 10.6% year over year to $28.7 million.
Overall, the adjusted operating profit was $35.8 million, down 6% from the year-ago figure. The adjusted operating margin saw a 100-bps contraction year over year to 11.3%.
Financial Details
The company exited the second quarter of 2023 with cash and cash equivalents of $80.7 million compared with $248.7 million as of Dec 31, 2022.
The cumulative net cash provided by operating activities at the end of the second quarter was $38.5 million compared with the prior-year period’s $68.1 million.
2023 Guidance
NuVasive reaffirmed its guidance for the full-year 2023.
The company continues to expect 2023 net sales growth of 6-8% on both a reported and constant-currency basis. The Zacks Consensus Estimate for the same is pegged at $1.29 billion.
Merger Update
On Feb 9, 2023, NuVasive and Globus Medical entered into a definitive agreement to combine the companies in an all-stock transaction. The planned combination received overwhelming support from both companies’ shareholders.
As communicated on May 3, the company received a second request from the Federal Trade Commission in connection with its review of the Globus merger. Despite the chances of potentially unfavorable outcomes related to FTC’s decision, NuVasive remains optimistic about closing the merger transaction in the third quarter of 2023, as indicated on the first-quarter 2023 earnings call.
Our Take
NuVasive exited the second quarter of 2023 with earnings matching estimates, while revenues lagged the same. Headwinds from the NCS business and Biologics resulted in a decline in U.S Surgical support revenues. The net sales performance was also negatively impacted by volatility in foreign exchange rates. A contraction of both margins in the quarter is discouraging.
On a positive note, the entire C360 portfolio of the U.S. Cervical business continued to deliver above-market growth, led by the increased surgeon adoption of the simplified cervical disc and Reliance Cervical. Across NUVA’s Specialized Orthopedics business, the re-entry of the Precise system in the United Kingdom and the CE Mark reinstatement of precise bone transport are encouraging.
During the quarter, the company made its commercial launch of the Pulse platform in several new European geographies and completed its first case in Singapore.
Zacks Rank and Key Picks
NuVasive currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NuVasive, Inc. (NUVA) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NuVasive, Inc. (NUVA) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NuVasive, Inc. (NUVA) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NuVasive, Inc. (NUVA) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30833.0 | 2023-08-03 00:00:00 UTC | STERIS (STE) Q1 Earnings Beat Estimates, Gross Margin Falls | ABT | https://www.nasdaq.com/articles/steris-ste-q1-earnings-beat-estimates-gross-margin-falls | nan | nan | STERIS plc STE reported first-quarter fiscal 2024 adjusted earnings per share (EPS) of $2.00, up 5.3% from the year-ago quarter’s figure. The metric also exceeded the Zacks Consensus Estimate by 7.5%.
The adjustment excludes the impacts of certain non-recurring charges like the amortization of acquired intangible assets and acquisition and integration-related charges among others.
The company’s GAAP EPS was $1.25, up 13.6% from the year-ago quarter’s earnings.
Revenues in Detail
Revenues of $1.28 billion increased 11% year over year in the first quarter. The metric beat the Zacks Consensus Estimate by 7.8%.
Organic revenues at constant exchange rate or CER too rose 11% year over year in the fiscal first quarter.
STERIS plc Price, Consensus and EPS Surprise
STERIS plc price-consensus-eps-surprise-chart | STERIS plc Quote
Quarter in Detail
The company operates through four segments — Healthcare, Applied Sterilization Technologies (AST), Life Sciences and Dental.
Revenues at Healthcare rose 17% year over year to $818.9 million (up 18% on a CER organic basis). This performance reflected a 33% improvement in capital equipment revenues, a 12% increase in service revenues and an 11% rise in consumable revenues. Going by our model, the the projection for the Healthcare segment’s second-quarter organic growth was 5.8%.
Revenues at AST improved 6% to $233.1 million (up 5% on a CER organic basis). Revenue growth was limited by customer inventory management and the continued reduction in demand from bioprocessing customers. Our model estimated organic growth of 1.6% for this business in the second quarter.
Revenues in the Life Sciences segment dropped 1% to $131.4 million (down 1% year over year on a CER organic basis). A 4% increase in consumable revenues and a 20% increase in service revenues were offset by a 23% decline in capital equipment revenues in the reported quarter.
The Dental segment reported revenues of $101.2 million, down 3.4% year over year (down 4% on a CER organic basis).
Margins
Gross profit in the reported quarter was $573.5 million, up 10.7% from the prior-year quarter’s gross profit. Gross margin however contracted 13 basis points (bps) year over year to 44.6% in the reported quarter.
STERIS witnessed a 7.3% year-over-year rise in selling, general and administrative expenses to $359.1 million. Research and development expenses rose 3% to $25.5 million. Adjusted operating expenses of $384.6 million rose 7% year over year. The adjusted operating margin expanded 101 bps to 14.7%.
Financial Details
STERIS exited first-quarter fiscal 2024 with cash and cash equivalents of $208.6 million compared with $208.4 million at the end of the fiscal 2023 fourth quarter.
Cumulative net cash flow from operating activities at the end of fiscal first quarter was $281.1 million compared with $231.7 million a year ago.
Further, the company has a five-year annualized dividend growth rate of 7.98%.
Guidance
Considering the just-completed acquisition of the surgical instrumentation, laparoscopic instrumentation and sterilization container assets from Becton, Dickinson and Company or BD (BDX), STERIS updated its fiscal 2024 guidance.
STERIS now expects fiscal 2024 revenues to increase 9-10% from fiscal 2023 (earlier expectation was in the range of 7-8% growth). Organic revenue expectation at CER remains unchanged at 6-7%. The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $5.33 billion, implying 7.5% growth from fiscal 2023.
Adjusted earnings per share for fiscal 2024 are now expected in the range of $8.60 to $8.80 (earlier range was $8.55 to $8.75). The Zacks Consensus Estimate for the metric is pegged at $8.79.
Our Take
STERIS exited first-quarter fiscal 2024 with earnings and revenue beat. Barring Life Sciences and Dental, each of STERIS’s operating segments reported organic revenue growth, which is encouraging. Yet, escalating costs are putting pressure on gross profit.
In fiscal 2024, the company is optimistic about many of the challenges of fiscal 2023 abating, including procedure volumes and supply chain constraints. Meanwhile, the company is also optimistic about the recently completed acquisition of BD’s surgical instrumentation, laparoscopic instrumentation and sterilization container assets. According to STE, the successful integration of the acquired business will strengthen, complement and expand STERIS’s product offerings within its Healthcare segment.
Zacks Rank and Key Picks
STERIS currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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STERIS plc (STE) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report STERIS plc (STE) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report STERIS plc (STE) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report STERIS plc (STE) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report STERIS plc (STE) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30834.0 | 2023-08-03 00:00:00 UTC | DENTSPLY SIRONA (XRAY) Beats on Q2 Earnings, Ups '23 EPS View | ABT | https://www.nasdaq.com/articles/dentsply-sirona-xray-beats-on-q2-earnings-ups-23-eps-view | nan | nan | DENTSPLY SIRONA Inc. XRAY reported second-quarter 2023 adjusted earnings per share (EPS) of 51 cents, which beat the Zacks Consensus Estimate of 43 cents by 18.6%. The bottom line, however, declined 26.2% on a year-over-year basis.
On a GAAP basis, the company reported EPS of 40 cents compared with 34 cents in the year-ago quarter.
Revenues
Revenues in the reported quarter totaled $1.03 billion, which beat the Zacks Consensus Estimate by 3.6%. The top line also increased 0.5% year over year and improved 2.3% on an organic basis. All four segments were up year over year organically with aligners leading the pack, growing in double digits. Business in China also returned to growth (up more than 25%) with healthy patient traffic in most key markets.
Business Details
As a part of its restructuring plan, the company changed its reporting structure from Apr 1, 2023. The company reported second-quarter results under four new segments — Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare.
While the Connected Technology Solutions segment consists of equipment, instruments and CAD/CAM business, the Orthodontic and Implant Solutions segment includes the implant systems and aligner solutions. These businesses were formerly part of the erstwhile Technologies and Equipment segment.
The Essential Dental Solutions unit includes endodontic, restorative and preventive consumables businesses, earlier part of the erstwhile Consumables segment. The Wellspect Healthcare segment includes urology catheters business, earlier part of Technologies & Equipment, and other healthcare-related consumable businesses, previously under the Consumable segment.
Connected Technology Solutions
Revenues in this segment totaled $309 million, up 0.6% year over year and 2.8% on an organic basis. CAD/CAM demand improved sequentially in the U.S. market while recessionary concerns led to softer demand in Europe. Supply recovery and higher demand in ROW market drove the Equipment & Instruments business.
Orthodontic and Implant Solutions
Sales in this segment amounted to $270 million, up 1.9% year over year. On an organic basis, net sales improved 3.7%. The growth was driven by SureSmile and Byte sales, coupled with growth in market share for Implants in China and global demand for products, partially offset by lower lab sales.
Essential Dental Solutions
Sales in this segment amounted to $377 million, down 0.8% year over year. On an organic basis, net sales improved 0.7%. The organic growth was driven by improved pricing and continued growth in restorative and preventive consumables in the United States, which was partially offset by lower sales in Europe.
Wellspect Healthcare
Sales in this segment amounted to $72 million, up 1.1% year over year. On an organic basis, net sales improved 3.1%. Sales were driven by growth across all regions.
Revenues by Geography
In the United States, revenues increased 1.1% year over year to $362 million. Rest of World (ROW) revenues were up 4.8% year over year to $263 million. Revenues in Europe, however, declined 2.7% year over year to $403 million. Sales in the U.S. and ROW markets increased 1.1% and 11%, respectively, on an organic basis. Organic sales declined 2% in the European market.
Margin Analysis
Gross profit in the reported quarter totaled $550 million, down 5.3% on a year-over-year basis. The gross margin came in at 53.5%, which contracted 320 basis points.
Selling, general and administrative expenses totaled $416 million, up 1.5% from the year-ago quarter’s level. Research and development expenses amounted to $49 million, up 8.9% from the prior-year quarter’s number.
Operating income totaled $80 million compared with $119 million in the year-ago period. The company recorded a tax benefit of $39 million against an income tax provision of $18 million in the year-ago period.
Financial Condition
DENTSPLY SIRONA exited the second quarter of 2023 with cash and cash equivalents of $295 million compared with $318 million at the end of the last reported quarter.
Cumulative net cash used in operating activities was $83 million against cumulative net cash provided by operating activities of $266 million in the year-ago period.
2023 Guidance Updated
DENTSPLY SIRONA updated its guidance for 2023 earnings and revenues based on encouraging performance in the first half of 2023. The company raised its earlier revenue guidance by $70 million. It now projects sales in the range of $3.98-$4.02 billion. The Zacks Consensus Estimate for the same is pegged at $3.94 billion. Revenues are expected to be up approximately 3% on an organic basis.
XRAY now expects adjusted EPS in the band of $1.92-$2.02, up from the previous projection of $1.85-$2.00. The Zacks Consensus Estimate for the same is pegged at $1.92. The raised guidance includes forex tailwind of 3 cents.
DENTSPLY SIRONA Inc. Price, Consensus and EPS Surprise
DENTSPLY SIRONA Inc. price-consensus-eps-surprise-chart | DENTSPLY SIRONA Inc. Quote
Our Take
Although adjusted earnings declined year over year, it beat market expectation. Better-than-expected revenues also buoy optimism. The company has also provided an improved outlook for both top and bottom line, reflecting rising demand, favorable forex movement and positive impact of better pricing and restructuring initiatives.
Recovery of demand in China will be a key driver of top line going forward. Sales improved more than 25% during the second quarter after a prolonged period of weak demand. Moreover, continued healthy patient traffic in most key markets is expected to drive revenues. While these are promising developments, investors should keep a watch on any change of course.
Although the volume-based pricing (VBP) policy in China impacted pricing, market share gains and higher VBP volume completely offset the impact leading to strong growth in the country.
However, soft demand in Europe may act as a headwind for the rest of 2023.
Zacks Rank and Stocks to Consider
Currently, DENTSPLY SIRONA has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 1.69%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30835.0 | 2023-08-03 00:00:00 UTC | Noteworthy ETF Inflows: DGRO, C, ABT, MDT | ABT | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-dgro-c-abt-mdt | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $87.0 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 462,150,000 to 463,800,000). Among the largest underlying components of DGRO, in trading today Citigroup Inc (Symbol: C) is off about 0.9%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Medtronic PLC (Symbol: MDT) is lower by about 0.7%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average:
Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $53.55 as the 52 week high point — that compares with a last trade of $52.40. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of DGRO, in trading today Citigroup Inc (Symbol: C) is off about 0.9%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Medtronic PLC (Symbol: MDT) is lower by about 0.7%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of DGRO, in trading today Citigroup Inc (Symbol: C) is off about 0.9%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Medtronic PLC (Symbol: MDT) is lower by about 0.7%. For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $53.55 as the 52 week high point — that compares with a last trade of $52.40. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of DGRO, in trading today Citigroup Inc (Symbol: C) is off about 0.9%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Medtronic PLC (Symbol: MDT) is lower by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $87.0 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 462,150,000 to 463,800,000). For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $53.55 as the 52 week high point — that compares with a last trade of $52.40. | Among the largest underlying components of DGRO, in trading today Citigroup Inc (Symbol: C) is off about 0.9%, Abbott Laboratories (Symbol: ABT) is down about 0.7%, and Medtronic PLC (Symbol: MDT) is lower by about 0.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core Dividend Growth ETF (Symbol: DGRO) where we have detected an approximate $87.0 million dollar inflow -- that's a 0.4% increase week over week in outstanding units (from 462,150,000 to 463,800,000). For a complete list of holdings, visit the DGRO Holdings page » The chart below shows the one year price performance of DGRO, versus its 200 day moving average: Looking at the chart above, DGRO's low point in its 52 week range is $43.67 per share, with $53.55 as the 52 week high point — that compares with a last trade of $52.40. |
30836.0 | 2023-08-02 00:00:00 UTC | Inspire Medical (INSP) Q2 Earnings & Revenues Top Estimates | ABT | https://www.nasdaq.com/articles/inspire-medical-insp-q2-earnings-revenues-top-estimates | nan | nan | Inspire Medical Systems, Inc. INSP delivered a loss of 41 cents per share in second-quarter 2023, narrower than the year-ago loss of 53 cents. The metric was also narrower than the Zacks Consensus Estimate of a loss of 51 cents.
Revenues in Detail
Inspire Medical registered revenues of $151.1 million in the second quarter, up 65.3% year over year. The figure surpassed the Zacks Consensus Estimate by 9.8%.
Per management, the top-line growth was driven by higher utilization at existing sites. The addition of new implanting centers and U.S. sales territories also complimented the improvement. The top line also benefited from strength in U.S. revenues and revenues outside the United States (All other countries).
Segment Details
Inspire Medical’s operations consist of two geographic regions — the United States and All other countries.
For the quarter under review, U.S. revenues of $144.7 million reflected an increase of 64.6% from the year-ago quarter on a reported basis. Per management, this upside was primarily driven by higher utilization at existing centers. Other growth drivers include the addition of new implanting centers, Inspire Medical’s continuing direct-to-consumer marketing and a higher number of territory managers.
During the reported quarter, Inspire Medical activated 72 new U.S. centers, thus bringing the total to 1,045 U.S. medical centers providing Inspire therapy. The company also created 19 new U.S. sales territories in the quarter, bringing the total to 261 U.S. sales territories.
Revenues from outside the United States totaled $6.3 million, up 81% year over year on a reported basis. Units sold outside the United States grew 72%.
Inspire Medical Systems, Inc. Price, Consensus and EPS Surprise
Inspire Medical Systems, Inc. price-consensus-eps-surprise-chart | Inspire Medical Systems, Inc. Quote
Margin Analysis
In the second quarter, Inspire Medical’s gross profit increased 64.3% to $126.8 million. However, the gross margin contracted 54 basis points to 83.9%.
Selling, general and administrative expenses jumped 46.9% to $112.6 million. Research and development expenses surged 112.1% year over year to $30.8 million. Operating expenses of $143.4 million increased 57.2% year over year.
Operating loss totaled $16.6 million, wider than the prior-year quarter’s operating loss of $14 million.
Financial Position
INSP exited second-quarter 2023 with cash and cash equivalents and short-term investments of $467.1 million compared with $452.1 million at the first-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter 2023 was $3.7 million against net cash used in operating activities of $18.7 million a year ago.
Outlook
Inspire Medical has upped its revenue outlook for 2023.
The company now projects revenues in the range of $600 million-$610 million (reflecting growth of 47-50% from 2022 levels), up from the earlier projection of $580 million-$590 million (reflecting growth of 42-45%). The Zacks Consensus Estimate for revenues is pegged at $590.8 million.
INSP continues to plan to activate 52-56 new U.S. medical centers providing Inspire therapy and add 12-14 new U.S. sales territories during each quarter of 2023.
Our Take
Inspire Medical exited the second quarter of 2023 with better-than-expected results. The robust improvement of the top line was impressive. Strength in year-over-year geographic results was promising.
The activation of new U.S. centers and the creation of new U.S. sales territories during the reported quarter also look encouraging. Management’s expectations of activating more U.S. medical centers and adding new U.S. sales territories during each quarter of 2023 also raise our optimism about the stock.
During the second quarter, Inspire Medical submitted the Inspire V neurostimulator premarket approval supplement application to the FDA. The company also received the FDA’s approval for Apnea Hypopnea Index indication expansion and increased Body Mass Index labeling (June) and the SleepSync physician programmer during the quarter. These also look promising for the stock.
However, dismal bottom-line results were disappointing. Rising operating costs weighed on the gross margin and resulted in its contraction. It also added to the woes. Continued operating loss incurred by Inspire Medical also raises apprehension.
Zacks Rank and Stocks to Consider
Inspire Medical currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted earnings per share (EPS) of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Integer Holdings reported second-quarter 2023 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 15.2%. Revenues of $400 million surpassed the Zacks Consensus Estimate by 8.9%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Inspire Medical Systems, Inc. (INSP) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Inspire Medical Systems, Inc. (INSP) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Inspire Medical Systems, Inc. (INSP) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Inspire Medical Systems, Inc. (INSP) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30837.0 | 2023-08-02 00:00:00 UTC | CVS Health (CVS) Q2 Earnings Surpass Estimates, Margins Up | ABT | https://www.nasdaq.com/articles/cvs-health-cvs-q2-earnings-surpass-estimates-margins-up | nan | nan | CVS Health Corporation's CVS second-quarter 2023 adjusted earnings per share (EPS) of $2.21 declined 12.6% year over year but exceeded the Zacks Consensus Estimate by 4.3%. The adjusted EPS figure considers certain asset amortization costs, loss on assets held for sale, and other adjustments.
On a reported basis, the company’s GAAP earnings were $1.48 per share, down 35.4% year over year.
Total revenues in the second quarter rose 10.3% year over year to $88.92 billion. The top line also beat the Zacks Consensus Estimate by 2.5%.
Quarter in Detail
The company recently realigned the composition of its segments. It created the Health Services segment (comprising the company’s pharmacy benefit management operations, health care services and provider enablement solutions) and the Pharmacy & Consumer Wellness segment (comprising enterprise pharmacy fulfilment and retail front store operations).
Health Services revenues were up 7.6% to $46.22 billion in the reported quarter. The upside was primarily driven by pharmacy drug mix, growth in specialty pharmacy, brand inflation and the acquisitions of Oak Street Health and Signify Health, partially offset by continued client price improvements.
Total pharmacy claims processed fell 1.2% on a 30-day equivalent basis, reflecting an expected Medicaid customer contract change and a decrease in COVID-19 vaccinations. The decline was largely offset by net new business.
Revenues from CVS Health’s Pharmacy & Consumer Wellness segment were up 7.6% year over year to $28.78 billion. The impressive growth was driven by increased prescription and front store volume, pharmacy drug mix and brand inflation. However, this growth was partially offset by impact of recent generic introductions, decreased COVID-19 vaccinations, diagnostic testing and over-the-counter (“OTC”) test kit sales, continued pharmacy reimbursement pressure and a decrease in store count.
Within the Health Care Benefits segment, the company registered revenues worth $26.75 billion in the second quarter, up 17.6% year over year driven by growth across all product lines.
Margin
Total cost (including Benefit Costs) rose 8.6% to $55.53 billion in the second quarter. Gross profit rose 12.9% to $35.38 billion. The gross margin expanded 92 basis points (bps) to 39.8%.
CVS Health Corporation Price, Consensus and EPS Surprise
CVS Health Corporation price-consensus-eps-surprise-chart | CVS Health Corporation Quote
The adjusted operating margin in the quarter under review contracted 188 bps to 15.3% on a 24.5% rise in operating expenses to $21.78 billion.
2023 Guidance
CVS Health restated its adjusted EPS guidance for full-year 2023 to the band of $8.50-$8.70 from $8.70 to $8.90. The Zacks Consensus Estimate for 2023 earnings is pegged at $8.60.
The company has reiterated its full-year operating cash flow projection in the range of $12.5 billion to $13.5 billion.
Our Take
CVS Health’s second-quarter 2023 earnings and revenues beat the Zacks Consensus Estimate. Robust sales growth across all three operating segments drove the top-line results. Within the Health Service segment, pharmacy drug mix, growth in specialty pharmacy, brand inflation drove year-over-year growth. During the second quarter of 2023, the Company developed an enterprise-wide restructuring plan intended to streamline and simplify the organization, improve efficiency and reduce costs.
However, the contraction of margins on escalating costs does not bode well. The decline in COVID-19 vaccinations and testing sales is a downside. Further, persistent pharmacy reimbursement headwinds also continued to impact business performance in the quarter under review.
Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30838.0 | 2023-08-02 00:00:00 UTC | Penumbra (PEN) Q2 Earnings Top Estimates, Sales View Raised | ABT | https://www.nasdaq.com/articles/penumbra-pen-q2-earnings-top-estimates-sales-view-raised | nan | nan | Penumbra, Inc. PEN reported second-quarter 2023 adjusted earnings per share (“EPS”) of 43 cents, which beat the Zacks Consensus Estimate of 28 cents by a huge 53.6%. The company had recorded an adjusted income of 1 cent per share in the year-ago period.
GAAP EPS was 48 cents against a loss per share of 10 cents in the prior-year quarter.
Revenues in Detail
Penumbra registered revenues of $261.5 million in the reported quarter, up 25.5% year over year on a reported basis as well as at constant exchange rate or CER. The figure also surpassed the Zacks Consensus Estimate by 3.3%.
Quarter in Details
The company reports under two geographical segments — United States and International — as well as under two product categories — Vascular and Neuro.
PEN recorded revenues of $186.7 million (71% of total revenues) in the United States, up 32% reportedly as well as at CER year over year.
Sales improved 11.7% to $74.7 million in the International segment. Excluding foreign currency impact, the unit’s sales were up 11.6% year over year.
The company registered revenues of $152.7 million from sales of vascular products, up 23.6% reportedly and 23.7% at CER from the prior-year level. There was 50% year-over-year growth in U.S. thrombectomy. The international Vascular business witnessed relatively flat year-over-year sales.
Sales of neuro products totaled $108.8 million, up 28.3% reportedly and 28.1% at CER. This business reported strong contribution from new products in the United States, Europe and Asia Pacific.
Penumbra, Inc. Price, Consensus and EPS Surprise
Penumbra, Inc. price-consensus-eps-surprise-chart | Penumbra, Inc. Quote
Margin Trend
In the reported quarter, Penumbra’s gross profit improved 24.5% to $166.9 million. However, gross margin contracted 52 basis points to 63.8% on a 27.4% rise incost of revenues.
Selling, general and administrative expenses rose 11.2% to $127.4 million. Research and development expenses totaled $21.5 million, up 10.1% year over year. Total operating expenses came in at $148.9 million, up 11% from that recorded in the prior-year quarter.
Adjusted operating income amounted to $17.9 million against the prior-year quarter’s reported loss of $0.1 million.
Financial Update
Penumbra exited second-quarter 2023 with cash and cash equivalents and marketable investments of $114.2 million compared with the first-quarter record of $199.1 million.
2023 Sales Guidance Raised
Penumbra issued updated guidance for 2023 revenues. The company expects net sales in the range of $1.05-$1.07 billion, implying a 24-26% improvement year over year. Previously, PEN anticipated sales to be in the band of $1.04-$1.06 billion in 2023. It expects the vascular business to grow slightly above the 24-26% range and the neuro business to remain below this guidance.
Our Take
Penumbra exited the second quarter of 2023 with encouraging results, wherein both revenues and earnings beat estimates.
The company’s vascular and neuro product categories showed encouraging growth trends. Its robust estimate for 2023 revenues reflects continued demand for its products. Strong uptake following the launch of Lightning Flash, Lightning Bolt 7 and RED 72 with SENDit technology accelerated top-line growth.
Moreover, Penumbra’s ability to improve net gross margins and EPS amid ongoing inflationary pressures and supply-chain headwinds buoy optimism.
Zacks Rank and Stocks to Consider
Currently, Penumbra carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Penumbra, Inc. (PEN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Penumbra, Inc. (PEN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Penumbra, Inc. (PEN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Penumbra, Inc. (PEN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30839.0 | 2023-08-02 00:00:00 UTC | AmerisourceBergen (ABC) Beats on Q3 Earnings, Ups '23 EPS View | ABT | https://www.nasdaq.com/articles/amerisourcebergen-abc-beats-on-q3-earnings-ups-23-eps-view | nan | nan | AmerisourceBergen Corporation ABC reported fiscal third-quarter 2023 adjusted earnings per share (EPS) of $2.92, which beat the Zacks Consensus Estimate of $2.83 by 3.2%. The bottom line improved 11.5% year over year.
GAAP EPS was $2.35, up 22.4% from that reported in the year-ago period.
Revenue Details
Revenues totaled $66.95 billion, up 11.5% year over year. The top line beat the Zacks Consensus Estimate by 5.6%.
Segmental Analysis
U.S. Healthcare Solutions
Revenues at this segment totaled $59.9 billion, up 12.2% on a year-over-year basis. This improvement was due to overall market growth and increased specialty product sales. Lower revenues from commercial COVID-19 treatments partially offset the upside.
Segmental operating income totaled $635.2 million, up 9.5% year over year. Higher gross profit (which included fees earned from the distribution of government-owned COVID-19 treatments and gross profit on sales to specialty physician practices) contributed to the upside.
International Healthcare Solutions
This segment includes Alliance Healthcare, World Courier, Innomar and Profarma Specialty.
Revenues totaled $7 billion, up 5.6% year over year on the back of increased revenues across all businesses, offset partially by the divestiture of its Brazilian specialty business. Revenues increased 12.4% at constant currency (cc).
Operating income totaled $187.1 million, up 6.2% reportedly and 7.3% at cc.
Margin Analysis
AmerisourceBergen reported an adjusted gross profit of $2.2 billion, up 8% on a year-over-year basis. As a percentage of revenues, the adjusted gross margin was 3.3%, down 11 basis points (bps) year over year.
The company recorded an adjusted operating income of $822.3 million, up 8.7% year over year. The metric was up 9% at cc. As a percentage of revenues, the adjusted operating margin was 1.2%, which contracted 3 bps from the year-ago quarter’s number.
Financial Position
ABC exited the fiscal third quarter with cash and cash equivalents worth $1.39 billion compared with $1.54 billion in the prior-year quarter.
Cumulative net cash used in operating activities totaled $2.1 billion compared with $1.54 billion in the year-ago period.
Dividend Update
During the quarter, AmerisourceBergen's board of directors declared a quarterly dividend of 48.5 cents per share, payable on Aug 28, to shareholders of record at the close of business on Aug 11, 2023.
AmerisourceBergen Corporation Price, Consensus and EPS Surprise
AmerisourceBergen Corporation price-consensus-eps-surprise-chart | AmerisourceBergen Corporation Quote
Fiscal 2023 Guidance
The company raised its 2023 outlook for earnings and revenues to reflect strong performance so far in 2023 and favorable foreign currency translation rates.
Adjusted EPS is now estimated in the range of $11.85-$11.95, indicating growth of 7-8% from the previous year’s projection. The Zacks Consensus Estimate for the same is currently pegged at $11.89. Previously, the company expected adjusted EPS in the band of $11.75-$11.90.
Revenues are now projected to increase at least 8% compared with the previous expectation of 6-8% growth. The top line at the U.S. Healthcare Solutions segment is expected to grow at least 9%, up from the prior guided range of 7-8%. Revenues at the International Healthcare solutions business are estimated to be up 1-4% versus the earlier guidance of flat to down 3%.
Adjusted EPS is estimated to improve 9-10% at cc, up from the previous guidance of 8-10%. Excluding contributions related to COVID-19 and currency fluctuations, the figure is projected to increase 13-14% compared with the previous expectation of 13-15%.
Adjusted operating income is expected to gain 3-4% versus 2-4% previously. Operating income at the U.S. Healthcare Solutions segment is now anticipated to grow 4-5% compared with the previous expectation of 3-5%. For the International Healthcare Solutions segment, the company's revised guidance for the metric is 0-4% compared with the prior projection of 3% decline to 1% growth.
Summing Up
AmerisourceBergen exited the fiscal third-quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company witnessed a strong segmental performance due to growth in all markets and strong demand for specialty products.
Per management, AmerisourceBergen delivered a solid performance by playing a crucial role in the healthcare system while maintaining efficiency throughout its business. The company remains focused on its strategic priorities and thoughtful capital deployment to deliver long-term growth.
ABC recently acquired a minority stake in a network of leading oncology practices, OneOncology, which is likely to further strengthen its relationship with community oncologists and expand its specialty solutions. Meanwhile, the company announced that it will change its name and ticker symbol to Cencora and COR, respectively, effective Aug 30.
However, the company faces headwinds like conversion of branded drugs and lower-price generics. Cut-throat competition in the MedTech space remains a concern.
Zacks Rank
AmerisourceBergen currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other Stocks to Consider Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Other Stocks to Consider Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report AmerisourceBergen Corporation (ABC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30840.0 | 2023-08-02 00:00:00 UTC | Nevro (NVRO) Q2 Earnings Lag Estimates, FY23 View Cut | ABT | https://www.nasdaq.com/articles/nevro-nvro-q2-earnings-lag-estimates-fy23-view-cut | nan | nan | Nevro Corp. NVRO reported a loss per share of 69 cents for the second quarter of 2023, narrower than the year-ago quarter’s loss of 71 cents per share. However, the loss per share was wider than the Zacks Consensus Estimate of a loss of 68 cents.
Revenues in Detail
Nevro registered worldwide revenues of $ 108.8 million in the second quarter, up 4.4% year over year on a reported basis. The figure missed the Zacks Consensus Estimate by 0.5%.
At constant exchange rate (CER), revenues were up 4% year over year.
Painful Diabetic Neuropathy (PDN) indication sales represented approximately $19 million (18%) of worldwide permanent implant procedures and were up 73% year over year.
Quarterly Highlights
In the quarter under review, international revenues were $15.8 million, up 4.5% year over year on a reported basis and 4% at CER. This figure compares to our second-quarter projection of $15.4 million.
U.S. revenues for the quarter totaled $93 million, up 4.5% year over year. This figure compares to our second-quarter projection of $95.1 million.
Total U.S. permanent implant procedures increased 8%, while U.S. trial procedures increased 4%. U.S. PDN trial procedures, representing approximately 23% of total U.S. trial volume, surged 64% from the prior-year quarter.
Nevro Corp. Price, Consensus and EPS Surprise
Nevro Corp. price-consensus-eps-surprise-chart | Nevro Corp. Quote
Margin Trend
In the quarter under review, Nevro’s gross profit rose 2.3% to $74.4 million. However, the gross margin contracted 138 basis points to 68.4%.
We had projected 68.4% of gross margin for the second quarter, in line with the company’s reported figure.
Sales, general & administrative expenses increased 3.3% to $86.8 million. Research and development expenses went up 6.1% year over year to $13.3 million. Total operating expenses of $100.1 million increased 3.7% year over year.
The total operating loss in the reported quarter totaled $25.6 million compared with a total operating loss of $23.8 million in the year-ago quarter.
Financial Position
Nevro exited the second quarter of 2023 with cash and cash equivalents and short-term investments of $329.9 million compared with $341.8 million at the end of the first quarter. Long-term debt at the end of second-quarter 2023 was $187.5 million compared with $187.2 million at the first-quarter end.
As of Jun 30, 2023, 36,763,038 shares were issued and 36,080,122 shares were outstanding.
Cumulative net cash used in operating activities at the end of second-quarter 2023 was $43.8 million compared with $41.3 million a year ago.
Guidance
Nevro has provided its financial outlook for the third quarter and lowered its financial outlook for 2023.
For the third quarter, Nevro expects its worldwide revenues to be in the range of $95 million-$97 million, reflecting a decline of 4-6% year over year at CER. The Zacks Consensus Estimate for the same is pegged at $110.6 million.
The company expects its 2023 worldwide revenues in the range of $410 million-$415 million, reflecting growth of 1-2% from the comparable figure of 2022 both on a reported basis and at CER. This is lowered from the prior outlook of $445 million to $455 million, reflecting growth of 10-12% from the comparable figure of 2022 both on a reported basis and at CER. The Zacks Consensus Estimate for the same is pegged at $442.3 million.
Our Take
Nevro exited the second quarter of 2023 with a solid improvement in overall top-line results. The company’s robust domestic and international revenues were also impressive. An uptick in total U.S. permanent implant procedures and U.S. trial procedures was promising. The improvement in U.S. PDN trial procedures was also encouraging.
In June, Nevro announced favorable SENZA-PDN Randomized Controlled Trial data at the American Diabetes Association Scientific Sessions, which demonstrated a positive correlation between the use of high-frequency (10 kHz) Spinal Cord Stimulation and reductions in HbA1c and body weight in a sub-group of patients with type 2 diabetes at 24 months.
During the quarter, Nevro also won two significant payer coverages — Florida Blue (updated their medical policy to include coverage for PDN, effective Jun 15, 2023) and Medicare Administrative Contractors Novitas and First Coast Service Options (who now covers PDN and Non-Surgical Back Pain following the Medicare National Coverage Determination, effective Jul 13, 2023). These look promising for the stock.
On theearnings call management confirmed that the full-market release of the HFX iQ system continues to progress well, raising our optimism about Nevro.
On the flip side, lower-than-expected results and dismal bottom-line performances were disappointing. The sustained operating loss incurred by Nevro also raises our apprehension. The contraction of the gross margin also does not bode well.
Zacks Rank and Key Picks
Nevro currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted earnings per share (EPS) of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Integer Holdings reported second-quarter 2023 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 15.2%. Revenues of $400 million surpassed the Zacks Consensus Estimate by 8.9%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Nevro Corp. (NVRO) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Nevro Corp. (NVRO) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Nevro Corp. (NVRO) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Nevro Corp. (NVRO) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30841.0 | 2023-08-02 00:00:00 UTC | Revvity (RVTY) Beats on Q2 Earnings, Lowers '23 EPS View | ABT | https://www.nasdaq.com/articles/revvity-rvty-beats-on-q2-earnings-lowers-23-eps-view | nan | nan | Revvity, Inc. RVTY reported second-quarter 2023 adjusted earnings per share (EPS) of $1.21, which beat the Zacks Consensus Estimate of $1.18 by 2.5%. The bottom line, however, declined 38.9% from the year-ago quarter’s level.
GAAP EPS from continuing operations came in at 47 cents compared with $1.28 in the prior-year period. However, GAAP EPS was 28 cents, including a loss of 18 cents per share from discontinued operations.
Discontinued Operations
In April, RVTY announced that its shareholders have approved a proposal to change the name from PerkinElmer, Inc. to Revvity, Inc. The company changed its name to Revvity with effect from Apr 26. Its ticker was changed to RVTY from PKI, effective May 16.
The decision to change the company’s name followed the completion of divesture of its Applied, Food and Enterprise Services (AES) business to an investment firm, New Mountain Capital, in March. The divestment deal was signed in 2022 for up to $2.45 billion in total consideration. The AES business will be a private company named PerkinElmer.
The business was part of the Discovery & Analytical Solutions segment that generated more than 28% of total combined revenues for erstwhile PerkinElmer in 2022. Following the divestment, the company now consists of the high-growth Life Sciences and Diagnostics business. During the second quarter, AES business’s financial activities were reported under discontinued operations.
Revenue Details
Based in Waltham, MA, this leading MedTech company reported revenues of $709.1 million, down 20.8% year over year and 20% organically. However, the metric was up 6% organically after excluding sales from COVID products. The top line beat the Zacks Consensus Estimate by 0.6%.
Segment Details
Revvity reports under two operating segments — Life Sciences and Diagnostics.
Life Sciences
Revenues at this segment totaled $336.4 million, indicating an increase of 3% from the year-ago quarter’s level. Organically, the segment witnessed an improvement of 3%.
Adjusted operating income amounted to $127.8 million, up 2.2% from that recorded in the prior-year quarter.
Diagnostics
This segment’s revenues totaled $372.9 million, down 34.5% on a year-over-year basis. Organically, the top line decreased 34%. Excluding COVID-related sales, sales were up 8% organically.
Adjusted operating income amounted to $85.2 million, down 65.2% from the year-ago quarter’s figure.
Margin Analysis
Selling, general and administrative expenses totaled $267 million, up 1.5% year over year. Research and development expenses amounted to $57.3 million, up 2.2% from the year-ago quarter’s number.
Adjusted operating income declined 42.4% to $204.3 million from the year-ago quarter’s level. Adjusted operating margin, as a percentage of revenues, was 28.8%, down 1080 bps.
Financial Update
The company exited the first quarter with cash and cash equivalents of $2.07 billion compared with $2.27 billion in the year-ago period.
Net cash used in operating activities, including discontinued operations, totaled $135.3 million against net cash provided by operating activities of $97.5 million in the year-ago quarter.
Revvity Inc. Price, Consensus and EPS Surprise
Revvity Inc. price-consensus-eps-surprise-chart | Revvity Inc. Quote
2023 Guidance
Revvity provided updated earnings and revenue guidance for full-year 2023.
For 2023, the company now expects adjusted EPS in the range of $4.70-$4.90 compared with the previous guidance of $4.85-$5.05. Revenues are anticipated in the band of $2.80-$2.85 billion compared with the previous projection of $2.90-$2.94 billion. The Zacks Consensus Estimate for EPS and sales is pegged at $4.94 and $2.92 billion, respectively.
Zacks Rank and Stocks to Consider
Currently, Revvity carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy) at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report Revvity Inc. (RVTY) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report Revvity Inc. (RVTY) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report Revvity Inc. (RVTY) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report Revvity Inc. (RVTY) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30842.0 | 2023-08-02 00:00:00 UTC | Exact Sciences (EXAS) Beats on Q2 Earnings, Ups '23 Sales View | ABT | https://www.nasdaq.com/articles/exact-sciences-exas-beats-on-q2-earnings-ups-23-sales-view | nan | nan | Exact Sciences Corporation EXAS reported a net loss of 45 cents per share in second-quarter 2023, narrower than a net loss of 94 cents in the year-ago quarter and the Zacks Consensus Estimate of a loss of 50 cents.
Revenues in Detail
Second-quarter consolidated revenues were $622.1 million, up 19.3% year over year. The metric exceeded the Zacks Consensus Estimate by 3.9%.
Segments in Detail
Screening revenues, including laboratory service revenues from Cologuard, PreventionGenetics and immaterial revenues from Biomatrica products, were $462.8 million. The figure increased 31% year over year.
The upside can be primarily attributed to broad-based momentum in Cologuard adoption and traction within health systems.
Precision Oncology revenues, including laboratory service revenues from global Oncotype products and therapy selection products, were $157.2 million, up 2% year over year. Growth was 7%, excluding the sale of the company’s prostate business and foreign exchange headwinds.
Revenues from COVID-19 testing totaled $2 million, down 84% year over year.
Margins
In the quarter under review, Exact Sciences’ gross profit (excluding the amortization of acquired intangibles) rose 26.4% to $465.1 million. The gross margin expanded 248 basis points (bps) to 74.8%.
Research and development expenses dropped 1.9% year over year to $104.1 million. Sales and marketing expenses fell 18.3% to $176.5 million. General and administrative expenses rose 30.9% year over year to $237.9 million.
Exact Sciences Corporation Price, Consensus and EPS Surprise
Exact Sciences Corporation price-consensus-eps-surprise-chart | Exact Sciences Corporation Quote
Adjusted operating expenses were $518.6 million in the second quarter, up 2.9% year over year. Adjusted operating loss totaled $53.4 million, narrower than the year-ago operating loss of $126.7 million.
Financial Update
Exact Sciences exited the second quarter of 2023 with cash and cash equivalents and marketable securities of $604.4 million compared with $698.6 million at the end of the first quarter of 2023.
The company has no long-term debt on its balance sheet at the end of the second quartrer.
2023 View
The company raised its 2023 revenue guidance to $2.441-$2.466 billion (from the earlier guidance of $2.380-$2.420 billion). The Zacks Consensus Estimate for the same is pegged at $2.26 billion.
For 2023, the company now expects its Screening revenues in the range of $1.820-$1.835 billion ($1.770-$1.795 billion). The company expects Precision Oncology revenues in the range of $615-$625 million ($605-$620 million).
COVID-19 testing revenues are expected to be $5 million (unchanged).
Our Take
Exact Sciences exited the second quarter of 2023 with better-than-expected results. The quarterly loss narrowed significantly from the year-ago period. Robust revenues from the Screening and Precision Oncology segments contributed to the second-quarter top line. The company continues to witness broad-based momentum in Cologuard’s adoption and traction within health systems. The growing uptake of the company’s Oncotype DX Breast and therapy selection products are major advantages. The raised 2023 guidance is a major upside.
However, the decline in COVID-19 sales hampered top-line growth. The company incurred an operating loss in the quarter under review, raising apprehension.
Zacks Rank and Other Key Picks
Exact Sciences currently carries Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Exact Sciences Corporation (EXAS) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30843.0 | 2023-08-01 00:00:00 UTC | Hologic's (HOLX) Q3 Earnings Beat Estimates, 2023 View Up | ABT | https://www.nasdaq.com/articles/hologics-holx-q3-earnings-beat-estimates-2023-view-up | nan | nan | Hologic, Inc. HOLX reported adjusted earnings per share (EPS) of 93 cents in third-quarter fiscal 2023, down 2.1% year over year. However, the bottom line surpassed the Zacks Consensus Estimate by 5.7%.
The adjustments include charges and benefits related to the amortization of acquired intangible assets, certain asset impairment charges and restructuring and integration/consolidation costs.
The company’s GAAP loss per share was 16 cents in the quarter compared with the year-ago quarter’s EPS of 90 cents.
Revenues in Detail
Revenues totaled $984.4 million in the said quarter, dropping 1.8% year over year (down 1.6% at the constant exchange rate or CER). The metric surpassed the Zacks Consensus Estimate by 2.9%. Lower sales of COVID-19 assays dragged the top line.
Segments in Detail
In the fiscal third quarter, U.S. revenues totaled $750.1 million and increased 2.1%. International revenues amounted to $234.3 million, which fell 12.6% year over year or 11.6% at CER.
Revenues in the Diagnostics segment declined 21.5% year over year (down 21.3% at CER) to $439.7 million in the quarter under review. Excluding COVID-19 revenues, Diagnostics revenues increased 11.8% on both reported and CER basis.
Cytology & Perinatal revenues of $126.8 million were up 9.9% at CER. Molecular Diagnostics revenues of $302.2 million declined 30.4% at CER. Blood Screening revenues of $10.7 million rose 20.2% year over year at CER.
Revenues in the Breast Health segment rose 27.4% from the year-ago period’s (up 27.5% at CER) levels to $311.5 million, primarily due to higher capital equipment revenue compared to the prior year period, as an improving semiconductor chip supply environment enabled more gantry deliveries.
Revenues in the GYN Surgical business rose 13.9% year over year (up 14.5% at CER) to $144.8 million, driven by solid results from the Company’s hysteroscopic portfolio.
Revenues at Skeletal Health increased 24.9% year over year (up 25% at CER) to $27.1 million.
Operational Update
In the fiscal third quarter, the company-provided adjusted gross margin contracted 250 basis points (bps) to 60.8%. According to the company, the downside in gross margin was primarily due to a year-over-year decline in COVID-19 assay sales.
Hologic, Inc. Price, Consensus and EPS Surprise
Hologic, Inc. price-consensus-eps-surprise-chart | Hologic, Inc. Quote
The company’s adjusted operating margin was 28.9%, contracted 340 bps.
Financial Update
Hologic ended third-quarter fiscal 2023 with cash and cash equivalents of $2.77 billion compared with $2.34 billion at the end of second-quarter fiscal 2023.
Total long-term debt (including the current portion) was $2.79 billion at the end of the fiscal third quarter, unchanged from the fiscal second quarter end’s levels.
Net cash provided by operating activities at the end of the fiscal third quarter was $792.5 million compared with $1.96 billion a year ago.
Guidance
Hologic issued the guidance for the fourth quarter and updated the fiscal 2023 guidance.
For fiscal 2023, the company projects revenues within $3.99-4.03 billion (up from the previous guidance of $3.92-4.03 billion), suggesting a year-over-year decline in the range of 17.8-17% on a reported basis, 17.1-16.2% at CER and 17.3-16.5% organically. The Zacks Consensus Estimate for fiscal 2023 revenues is pegged at $4.01 billion.
Adjusted earnings per share for fiscal 2023 are now estimated to be $3.87-$3.94 (up from the previous guidance of $3.75-$3.95), with a projected decline of 35.7-34.6% year over year. The Zacks Consensus Estimate for fiscal 2023 earnings per share is pegged at $3.89.
For fourth-quarter fiscal 2023, the company projects revenues within $910-$950 million, suggesting a year-over-year decline in the range of 4.5-0.3% on a reported basis, 5.2-1% at CER and 5.1-0.9% organically. The Zacks Consensus Estimate for fourth-quarter fiscal 2023 revenues is pegged at $949.5 million.
Adjusted EPS for the fourth quarter are estimated in the range of 80-87 cents, suggesting a decline of 2.4-6.1% year over year. The Zacks Consensus Estimate for fourth-quarter fiscal 2023 EPS is pegged at 86 cents.
Our Take
Hologic delivered better-than-expected revenues and earnings in third-quarter fiscal 2023. The company’s Breast Health segment registered strong growth driven by improving semiconductor chip supply, enabling additional gantry deliveries within the quarter, resulting in higher capital equipment revenue compared with the prior-year period’s levels. GYN Surgical business, driven by strong results from the Company’s hysteroscopic portfolio. During the reported quarter, the company obtained FDA 510(k) clearance for its Panther Fusion® SARS-CoV-2/Flu A/B/RSV assay. Moreover, the company has raised 2023 guidance, raising optimism about the stock.
On a year-over-year basis, revenues and earnings were significantly down. The significant decline in COVID-19 assay revenues dragged total revenues down. The company also reported a contraction in both margins, which looks discouraging.
Zacks Rank and Key Picks
Hologic currently carries Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9% You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Hologic, Inc. (HOLX) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Hologic, Inc. (HOLX) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Hologic, Inc. (HOLX) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Hologic, Inc. (HOLX) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30844.0 | 2023-08-01 00:00:00 UTC | Zimmer Biomet's downbeat 2024 view hits shares after forecast raise | ABT | https://www.nasdaq.com/articles/zimmer-biomets-downbeat-2024-view-hits-shares-after-forecast-raise | nan | nan | By Mariam Sunny
Aug 1 (Reuters) - Zimmer Biomet Holdings ZBH.N on Tuesday raised its full-year profit forecast after beating second-quarter estimates on demand for its medical devices but shares fell more than 5% as investors focused on the company's comments for 2024.
Expectations were high heading into the results following strong reports from Abbott Laboratories ABT.N and Johnson & Johnson JNJ.N as a resumption of non-urgent procedures and easing staffing shortages at hospitals boosted demand.
"Revenue growth may look and feel normal, but the underlying dynamics are still not normal," Zimmer CFO Suketu Upadhyay said in a post-earnings call.
The company said it expects backlog to remain the same or decrease going into 2024.
Combined sales at Zimmer's hips and knees units rose 7% to $1.28 billion in the second quarter, compared to the average $1.21 billion estimated by four analysts according to Refinitiv data.
"The question is the degree to which this level of elevated US (joint reconstruction market) growth is sustainable into 2024," Truist Securities analyst Richard Newitter said in a note.
Indiana-based Zimmer's second-quarter revenue rose nearly 5% to $1.87 billion, beating analysts' estimates of $1.83 billion.
The company now expects full-year profit of $7.47 to $7.57 per share, compared with its previous forecast of $7.40 to $7.50.
Excluding items, the company earned $1.82 per share, compared with estimates of $1.81.
(Reporting by Mariam Sunny in Bengaluru; Editing by Sriraj Kalluvila)
((Mariam.ESunny@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Expectations were high heading into the results following strong reports from Abbott Laboratories ABT.N and Johnson & Johnson JNJ.N as a resumption of non-urgent procedures and easing staffing shortages at hospitals boosted demand. By Mariam Sunny Aug 1 (Reuters) - Zimmer Biomet Holdings ZBH.N on Tuesday raised its full-year profit forecast after beating second-quarter estimates on demand for its medical devices but shares fell more than 5% as investors focused on the company's comments for 2024. "The question is the degree to which this level of elevated US (joint reconstruction market) growth is sustainable into 2024," Truist Securities analyst Richard Newitter said in a note. | Expectations were high heading into the results following strong reports from Abbott Laboratories ABT.N and Johnson & Johnson JNJ.N as a resumption of non-urgent procedures and easing staffing shortages at hospitals boosted demand. By Mariam Sunny Aug 1 (Reuters) - Zimmer Biomet Holdings ZBH.N on Tuesday raised its full-year profit forecast after beating second-quarter estimates on demand for its medical devices but shares fell more than 5% as investors focused on the company's comments for 2024. Indiana-based Zimmer's second-quarter revenue rose nearly 5% to $1.87 billion, beating analysts' estimates of $1.83 billion. | Expectations were high heading into the results following strong reports from Abbott Laboratories ABT.N and Johnson & Johnson JNJ.N as a resumption of non-urgent procedures and easing staffing shortages at hospitals boosted demand. By Mariam Sunny Aug 1 (Reuters) - Zimmer Biomet Holdings ZBH.N on Tuesday raised its full-year profit forecast after beating second-quarter estimates on demand for its medical devices but shares fell more than 5% as investors focused on the company's comments for 2024. Combined sales at Zimmer's hips and knees units rose 7% to $1.28 billion in the second quarter, compared to the average $1.21 billion estimated by four analysts according to Refinitiv data. | Expectations were high heading into the results following strong reports from Abbott Laboratories ABT.N and Johnson & Johnson JNJ.N as a resumption of non-urgent procedures and easing staffing shortages at hospitals boosted demand. Indiana-based Zimmer's second-quarter revenue rose nearly 5% to $1.87 billion, beating analysts' estimates of $1.83 billion. The company now expects full-year profit of $7.47 to $7.57 per share, compared with its previous forecast of $7.40 to $7.50. |
30845.0 | 2023-08-01 00:00:00 UTC | Tenet Healthcare (THC) Q2 Earnings Beat on Solid Hospital Unit | ABT | https://www.nasdaq.com/articles/tenet-healthcare-thc-q2-earnings-beat-on-solid-hospital-unit | nan | nan | Tenet Healthcare Corporation THC reported second-quarter 2023 adjusted earnings of $1.44 per share, which beat the Zacks Consensus Estimate by 14.3% and surpassed management’s expectations. However, the bottom line decreased 2.7% year over year.
Net operating revenues of THC amounted to $5,082 million, which improved 9.6% year over year in the quarter under review and exceeded the management’s estimate. The top line outpaced the consensus mark by 3.7%.
The quarterly results were aided by expanding patient volumes, which led to strong revenue growth in the Ambulatory Care and Hospital segments. Though the growth pace of contract labor costs moderated a bit, a rise in overall expenses of Tenet Healthcare partly offset the upside.
Tenet Healthcare Corporation Price, Consensus and EPS Surprise
Tenet Healthcare Corporation price-consensus-eps-surprise-chart | Tenet Healthcare Corporation Quote
Q2 Performance
Adjusted net income from continuing operations of $154 million fell 4.3% year over year in the second quarter and outperformed management’s expectations. The figure came higher than our estimate of $128.4 million.
Adjusted EBITDA remained flat year over year at $843 million. Adjusted EBITDA, excluding grant income, advanced 11.5% year over year to $835 million.
Operating expenses of $4,540 million escalated 7.3% year over year in the quarter under review and came higher than our estimate of $4,363.6 million. The increase was due to elevated salaries, wages and benefits coupled with higher supplies and other operating expenses.
Segmental Details
Hospital Operations and Other – The segment’s net operating revenues rose 7.6% year over year to $3,922 million in the second quarter, higher than our estimate of $3,747.9 million. Higher adjusted admissions and improved pricing yield contributed to the unit’s results.
On a same-hospital basis, net patient service revenues of $3,590 million improved 7.4% year over year.
Adjusted EBITDA tumbled 10% year over year to $388 million in the quarter under review but outpaced our estimate of $345.4 million, Adjusted EBITDA, excluding grant income, grew 12.4% year over year.
Ambulatory Care – The segment reported net operating revenues of $942 million, which climbed 22.2% year over year in the second quarter and surpassed our estimate of $889.1 million. The business benefited on the back of robust growth in same-facility net surgical cases, buyouts and inauguration of facilities, expansion of service line and improved pricing yield.
Adjusted EBITDA of $370 million advanced 16% year over year in the quarter under review and beat our estimate of $362.4 million. Adjusted EBITDA, excluding grant income, improved 16.4% year over year, thanks to prudent cost-cutting efforts.
Conifer – Net operating revenues totaled $323 million, which slid 3% year over year in the second quarter and fell short of our estimate of $328.7 million. The prior announced contract changes with Tenet Healthcare's hospitals gave a blow to the segment’s quarterly results.
Adjusted EBITDA slipped 8.6% year over year to $85 million but outpaced our estimate of $81.8 million.
Financial Position (as of Jun 30, 2023)
Tenet Healthcare exited the second quarter with cash and cash equivalents of $934 million, which advanced 8.9% from the figure at 2022 end. Total assets of $27,157 million inched up marginally from 2022-end level.
Long-term debt, net of the current portion, amounted to $14,907 million. The figure inched up marginally from the figure as of Dec 31, 2022. Short-term debt totaled $141 million.
THC had no outstanding borrowings under its $1.5 billion line of credit at the June-quarter end.
Total shareholders’ equity of $1,343 million improved 17.6% from the figure at 2022 end.
In the first half of 2023, net cash provided by operating activities increased three-fold from the prior-year comparable period to $1,047 million. Free cash flows were recorded at $466 million in the quarter under review.
Share Repurchase Update
THC bought back common shares worth $40 million in the second quarter.
3Q23 Guidance
Net operating revenues are forecast between $4,900 million and $5,100 million.
Adjusted EBITDA is anticipated between $775 million and $825 million.
Adjusted net income from continuing operations is projected between $100 million and $135 million.
Adjusted earnings per share (EPS) is estimated between 94 cents and $1.28.
2023 Guidance
Concurrent with the second-quarter results, THC updated its 2023 guidance with respect to certain metrics.
Net operating revenues are currently forecasted to lie between $20,100 million and $20,500 million this year, higher from the earlier view of $19,800-$20,200 million. The midpoint of the revised guidance suggests 5.9% growth from the 2022 reported figure.
Net operating revenues of the Hospital segment are presently anticipated within $15,540 million and $15,790 million. The same at the Ambulatory Care and Conifer units are likely to stay between $3,725 million and $3,825 million, and $1,285 million and $1,335 million, respectively.
Adjusted EBITDA is forecasted within $3,310-$3,460 million, up from the previous guidance of $3,210-$3,410 million. Adjusted EBITDA margin is now expected in the 16.5-16.9% band, compared with the prior range of 16.2-16.9%.
Adjusted net income from continuing operations is projected to lie between $550 million and $640 million this year, compared with the earlier view of $530-$655 million. The midpoint of the revised outlook implies a decline of 20% from the 2022 reported figure.
Adjusted EPS is anticipated to be within $5.18-$6.03 for 2023, compared with the prior outlook of $4.92-$6.09. The midpoint of the revised guidance hints at a 17.6% plunge from the 2022 figure.
Net cash provided by operating activities is currently forecasted to lie between $1,775 million and $2,075 million, higher than the earlier guidance of $1,725-$2,025 million.
Free cash flow continues to be expected within $1,100 million and $1,350 million in 2023. Capital expenditures is currently projected between $675 million and $725 million.
Zacks Rank
Tenet Healthcare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the Zacks Consensus Estimate.
Elevance Health reported second-quarter 2023 adjusted net income of $9.04 per share, which outpaced the Zacks Consensus Estimate by 2.5%. The bottom line improved 13.4% year over year. ELV’s operating revenues, which amounted to $43,377 million, rose 12.7% year over year in the quarter under review. The top line surpassed the consensus mark by 4.5%. Medical membership of Elevance Health totaled around 48 million as of Jun 30, 2023, which increased 2% year over year in the second quarter. Overall premiums grew 10.6% year over year to $36,589 million in the quarter under review.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate of $1.32 by 7.6%. The bottom line improved 24.6% year over year. ISRG reported revenues of $1.76 billion, up 15.4% from the prior-year quarter’s number. On a constant currency basis, revenues were up 17% year over year. The top line beat the consensus estimate by 1.4%. Adjusted operating income totaled $617.6 million, up 16.3% year over year. Revenues at the Instruments & Accessories segment totaled $1.08 billion, indicating a year-over-year improvement of 20.2%.
Abbott Laboratories reported second-quarter 2023 adjusted earnings of $1.08 per share, which topped the Zacks Consensus Estimate by 3.8%. However, the adjusted figure declined from the prior-year quarter’s levels by 24.5%. Second-quarter worldwide sales of $9.98 billion were down 11.4% year over year on a reported basis. The top line exceeded the consensus estimate by 2.9%. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Also, the adjusted operating margin contracted 517 bps to 20.4%. Established Pharmaceuticals segment’s product sales increased 5.2% on a reported basis (up 12.6% on an organic basis) to $1.29 billion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. | Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30846.0 | 2023-08-01 00:00:00 UTC | Ecolab (ECL) Q2 Earnings Surpass Estimates, Margins Rise | ABT | https://www.nasdaq.com/articles/ecolab-ecl-q2-earnings-surpass-estimates-margins-rise | nan | nan | Ecolab Inc. ECL reported second-quarter 2023 adjusted earnings per share (EPS) of $1.24, up 12.7% year over year. The bottom line exceeded the Zacks Consensus Estimate by 2.5%.
GAAP EPS for the quarter was $1.15, up 6.5% year over year.
Revenue Details
Revenues grossed $3.85 billion in the reported quarter, up 7.6% year over year. The metric missed the Zacks Consensus Estimate by 0.4%.
Ecolab’s organic sales increased 9% from the prior-year period’s level.
The year-over-year uptick in the second-quarter organic sales was driven by strong growth in the Institutional & Specialty, Industrial and Other segments.
Segmental Analysis
The Global Industrial segment’s fixed currency sales of $1.79 billion reflect 8.6% reported growth year over year. Organic sales increased 9% year over year, driven by double-digit gains in Water and Food & Beverage. This compares to our projection of second-quarter segmental revenues of $1.86 billion.
The Global Institutional & Specialty arm’s fixed currency sales of $1.27 billion reflect reported growth of 13.5%. Organic sales increased 13% year over year, driven by double-digit growth in both the Institutional and Specialty divisions. This compares to our projection of second-quarter segmental revenues of $1.21 billion.
The Global Healthcare and Life Sciences arm’s fixed currency sales of $387.5 million improved 0.8%. Organic sales growth of 1% was driven by growth in Healthcare sales, offset by soft near-term life sciences industry demand. This compares to our projection of second-quarter segmental revenues of $416.2 million.
The Other segment’s fixed currency sales of $362.6 million improved 9.1% on a reported basis. Organic sales growth was 9%, reflecting double-digit growth in Pest Elimination. This compares to our projection of second-quarter segmental revenues of $364.3 million.
Ecolab Inc. Price, Consensus and EPS Surprise
Ecolab Inc. price-consensus-eps-surprise-chart | Ecolab Inc. Quote
Margin Analysis
In the quarter under review, Ecolab’s gross profit improved 10.8% to $1.52 billion. The gross margin expanded 114 basis points (bps) to 39.4%.
We had projected 39.4% of gross margin for the second quarter, in line with the company’s reported figure.
Selling, general and administrative expenses rose 7.6% to $1.01 billion year over year.
Adjusted operating profit totaled $505.7 million, increasing 17.8% from the prior-year quarter’s level. Adjusted operating margin in the quarter also expanded 114 bps to 13.1%.
Financial Position
Ecolab exited second-quarter 2023 with cash and cash equivalents of $554.2 million compared with $419.4 million at the end of first quarter. Total debt at the end of second-quarter 2023 was $8.62 billion compared with $8.64 billion at the first-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter 2023 was $771.6 million compared with $492.5 million a year ago.
Meanwhile, Ecolab has a consistent dividend-paying history, with five-year annualized dividend growth being 4.1%.
Guidance
Ecolab has not provided its 2023 outlook. However, it expects its strong performance to overcome the volatile macro environment to deliver mid-teens growth in adjusted diluted EPS in the second half of 2023.
Ecolab has provided its adjusted EPS outlook for the third quarter of 2023. The company expects its adjusted EPS to be in the range of $1.45-$1.55, up 12-19% from the prior-year period. The Zacks Consensus Estimate for the quarter is currently pegged at $1.45 per share.
Our Take
Ecolab exited the second quarter of 2023 with better-than-expected earnings. The company registered a robust year-over-year uptick in its top and bottom lines, along with solid performances across all segments. Strong pricing momentum and steady overall volume were also encouraging. Ecolab’s new business wins and productivity initiatives are well-positioned to drive growth and global leadership. The company’s digital capabilities, innovation and global service expertise are expected to lead to robust new business wins, which are encouraging. The expansion of both margins bodes well for the stock.
However, Ecolab’s lower-than-expected revenues and soft near-term life sciences industry demand were disappointing. The company faced easing but ongoing delivered product cost inflation and challenging macroeconomic conditions, raising our apprehension.
Zacks Rank and Other Key Picks
Ecolab currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Integer Holdings reported second-quarter 2023 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 15.2%. Revenues of $400 million surpassed the Zacks Consensus Estimate by 8.9%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Ecolab Inc. (ECL) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Ecolab Inc. (ECL) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Ecolab Inc. (ECL) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Integer Holdings Corporation ITGR and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Ecolab Inc. (ECL) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30847.0 | 2023-08-01 00:00:00 UTC | Zimmer Biomet (ZBH) Q2 Earnings Match Estimates, View Raised | ABT | https://www.nasdaq.com/articles/zimmer-biomet-zbh-q2-earnings-match-estimates-view-raised | nan | nan | Zimmer Biomet Holdings, Inc. ZBH posted second-quarter 2023 adjusted earnings per share (EPS) of $1.81, in line with the Zacks Consensus Estimate. The adjusted figure remained unchanged year over year.
The quarter’s adjustments included certain amortization, restructuring and European Union Medical Device Regulation-related charges, among others.
On a reported basis, the company registered earnings of $1.00 per share, marking a 36.9% improvement from the year-ago earnings.
Revenue Details
Second-quarter net sales of $1.87 billion increased 4.9% (up 6% at constant exchange rate or CER) year over year. The figure beat the Zacks Consensus Estimate by 2.1%.
Geographic Details
During the second quarter, sales generated in the United States totaled $1.07 billion (up 5% year over year), while the same in International grossed $800.7 million (up 7.2% year over year at CER).
Our model projected 1.2% revenue growth for the United States and 3.5% CER growth for the International arm of Zimmer Biomet for the second quarter.
Zimmer Biomet Holdings, Inc. Price, Consensus and EPS Surprise
Zimmer Biomet Holdings, Inc. price-consensus-eps-surprise-chart | Zimmer Biomet Holdings, Inc. Quote
Segments
In terms of product categories, post the dental and spine arm sell-off, the company reports through the remaining four product categories which are Knees, Hips, S.E.T. (Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic) and Other.
Sales in the Knees unit improved 10.5% year over year at CER to $771.4 million. Our model estimate was pegged at $711.8 million.
Hips recorded a 4.9% rise in the second quarter at CER to $504.3 million. Our model estimate was $519.1 million for the same.
Revenues in the S.E.T. unit was down 0.3% year over year at CER to $442.7 million. Our model estimate was $430.3 million.
Other revenues increased 6.5% to $151.2 million at CER in the second quarter. Our model estimate was $144.1 million.
Margins
Adjusted gross margin, after excluding the impact of intangible asset amortization, was 71.9%, reflecting an expansion of 57 basis points (bps) in the second quarter. Selling, general and administrative expenses were up 4.4% to $725.8 million. Research and development expenses rose 18.8% to $118.1 million. Adjusted operating margin expanded 3 bps to 26.8% in the quarter.
Cash Position
Zimmer Biomet exited the second quarter of 2023 with cash and cash equivalents of $319.8 million compared with $330.2 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of the second quarter was $655.6 million compared with $661.2 million in the year-ago period.
2023 Guidance
Zimmer Biomet raised its financial guidance for 2023.
Revenue growth is now expected to be in the band of 6.5%-7% compared with 2022 (an improvement from the earlier band of 5%-6%).
Adjusted EPS for the full year is expected in the range of $7.47-$7.57 ($7.40-$7.50 earlier).
The Zacks Consensus Estimate for 2023 adjusted earnings is pegged at $7.46 on revenues of $7.34 billion.
Our Take
Zimmer Biomet ended the second quarter of 2023 with in-line earnings and a revenue beat. Each of the company’s geographic segments recorded strong year-over-year sales growth at CER. Barring S.E.T., the company’s business segments too reported strong CER growth. Management noted continued procedure recovery, solid execution and increasing traction around innovations in the reported quarter. Even amid the challenging macroeconomic conditions, expansion in the company’s adjusted gross and operating margins is encouraging. The raised 2023 guidance is an indication of the strong growth momentum to continue through the year.
Zacks Rank and Other Key Picks
Zimmer Biomet currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
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Abbott Laboratories (ABT) : Free Stock Analysis Report
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Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30848.0 | 2023-08-01 00:00:00 UTC | Medical device maker Zimmer Biomet lifts profit forecast as surgeries rebound | ABT | https://www.nasdaq.com/articles/medical-device-maker-zimmer-biomet-lifts-profit-forecast-as-surgeries-rebound | nan | nan | Corrects paragraph 3 to remove reference to Abbott's hips and knees unit
Aug 1 (Reuters) - Zimmer Biomet Holdings Inc ZBH.N on Tuesday raised its full-year profit forecast, anticipating demand to hold up for its medical devices following a rebound in knee and hip replacement procedures.
The company also beat estimates for profit to extend a strong second quarter for the industry that is benefiting from patients resuming non-urgent procedures and surgeries postponed during the pandemic and staffing shortages easing at hospitals.
Abbott LaboratoriesABT.N attributed its strong quarter to hospitals addressing bottlenecks from the pandemic while Johnson & JohnsonJNJ.N said it expected to top profit estimates with surgeries bouncing back.
Combined sales at Zimmer's hips and knees units rose 7% to $1.28 billion from a year earlier, compared to the average $1.21 billion by four analysts, according to Refinitiv data.
The company now expects full-year profit of $7.47 to $7.57 per share, compared with its previous forecast of $7.40 to $7.50.
Analysts were expecting an annual profit of $7.45 per share.
While expectations were high, the results support the brokerage's positive view regarding both Zimmer's improved competitiveness and persisting growth in orthopedic markets, Baird Equity Research analyst Jeff Johnson said in a note.
The Indiana-based company's second-quarter revenue rose nearly 5% to $1.87 billion, beating analysts' estimates of $1.83 billion.
Zimmer also expects reported revenue to grow between 6.5% and 7% this year, compared to its prior forecast of between 5% and 6%.
Excluding items, the company earned $1.82 per share, compared with estimates of $1.81.
(Reporting by Mariam Sunny in Bengaluru; Editing by Sriraj Kalluvila)
((Mariam.ESunny@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott LaboratoriesABT.N attributed its strong quarter to hospitals addressing bottlenecks from the pandemic while Johnson & JohnsonJNJ.N said it expected to top profit estimates with surgeries bouncing back. The company also beat estimates for profit to extend a strong second quarter for the industry that is benefiting from patients resuming non-urgent procedures and surgeries postponed during the pandemic and staffing shortages easing at hospitals. While expectations were high, the results support the brokerage's positive view regarding both Zimmer's improved competitiveness and persisting growth in orthopedic markets, Baird Equity Research analyst Jeff Johnson said in a note. | Abbott LaboratoriesABT.N attributed its strong quarter to hospitals addressing bottlenecks from the pandemic while Johnson & JohnsonJNJ.N said it expected to top profit estimates with surgeries bouncing back. Corrects paragraph 3 to remove reference to Abbott's hips and knees unit Aug 1 (Reuters) - Zimmer Biomet Holdings Inc ZBH.N on Tuesday raised its full-year profit forecast, anticipating demand to hold up for its medical devices following a rebound in knee and hip replacement procedures. Combined sales at Zimmer's hips and knees units rose 7% to $1.28 billion from a year earlier, compared to the average $1.21 billion by four analysts, according to Refinitiv data. | Abbott LaboratoriesABT.N attributed its strong quarter to hospitals addressing bottlenecks from the pandemic while Johnson & JohnsonJNJ.N said it expected to top profit estimates with surgeries bouncing back. Corrects paragraph 3 to remove reference to Abbott's hips and knees unit Aug 1 (Reuters) - Zimmer Biomet Holdings Inc ZBH.N on Tuesday raised its full-year profit forecast, anticipating demand to hold up for its medical devices following a rebound in knee and hip replacement procedures. The company also beat estimates for profit to extend a strong second quarter for the industry that is benefiting from patients resuming non-urgent procedures and surgeries postponed during the pandemic and staffing shortages easing at hospitals. | Abbott LaboratoriesABT.N attributed its strong quarter to hospitals addressing bottlenecks from the pandemic while Johnson & JohnsonJNJ.N said it expected to top profit estimates with surgeries bouncing back. The company also beat estimates for profit to extend a strong second quarter for the industry that is benefiting from patients resuming non-urgent procedures and surgeries postponed during the pandemic and staffing shortages easing at hospitals. Combined sales at Zimmer's hips and knees units rose 7% to $1.28 billion from a year earlier, compared to the average $1.21 billion by four analysts, according to Refinitiv data. |
30849.0 | 2023-08-01 00:00:00 UTC | Longreach sells stake in medical device firm Quasar to Boyu Capital | ABT | https://www.nasdaq.com/articles/longreach-sells-stake-in-medical-device-firm-quasar-to-boyu-capital | nan | nan | Updates with Longreach's response in paragraph 4
Aug 1 (Reuters) - Private equity firm Longreach Group said it has sold its majority stake in Hong Kong-based medical device manufacturing solution provider Quasar Medical to Boyu Capital Partner.
Longreach, which bought a 86% majority interest in Quasar in April 2019, said in a statement late on Monday that it and the minority shareholders from Quasar's founding family have sold all the issued and outstanding shares in the company, without disclosing the value of the transaction.
The deal valued Quasar at more than $600 million, a person with direct knowledge of the matter told Reuters. The person declined to be identified as the information was not public.
Boyu and Longreach declined to comment. Quasar did not immediately respond to a Reuters query.
Reuters reported in May, citing sources, that Boyu Capital, Hillhouse Capital and BPEA EQT were bidding for Quasar, with Longreach targeting a valuation of as much as $600 million or more for the entire company.
Established in 1988 and headquartered in Hong Kong, Quasar is a leading contract development and manufacturing organisation of advanced medical devices and counts Johnson & Johnson JNJ.N, Medtronic MDT.N and Abbott Laboratories ABT.N as their clients, the company's website showed.
(Reporting by Kane Wu and Roxanne Liu; Editing by Stephen Coates and Kim Coghill)
((hongkong.newsroom@thomsonreuters.com; （8610）6627-1277; Reuters Messaging: roxanne.liu@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Established in 1988 and headquartered in Hong Kong, Quasar is a leading contract development and manufacturing organisation of advanced medical devices and counts Johnson & Johnson JNJ.N, Medtronic MDT.N and Abbott Laboratories ABT.N as their clients, the company's website showed. Updates with Longreach's response in paragraph 4 Aug 1 (Reuters) - Private equity firm Longreach Group said it has sold its majority stake in Hong Kong-based medical device manufacturing solution provider Quasar Medical to Boyu Capital Partner. The deal valued Quasar at more than $600 million, a person with direct knowledge of the matter told Reuters. | Established in 1988 and headquartered in Hong Kong, Quasar is a leading contract development and manufacturing organisation of advanced medical devices and counts Johnson & Johnson JNJ.N, Medtronic MDT.N and Abbott Laboratories ABT.N as their clients, the company's website showed. Updates with Longreach's response in paragraph 4 Aug 1 (Reuters) - Private equity firm Longreach Group said it has sold its majority stake in Hong Kong-based medical device manufacturing solution provider Quasar Medical to Boyu Capital Partner. Boyu and Longreach declined to comment. | Established in 1988 and headquartered in Hong Kong, Quasar is a leading contract development and manufacturing organisation of advanced medical devices and counts Johnson & Johnson JNJ.N, Medtronic MDT.N and Abbott Laboratories ABT.N as their clients, the company's website showed. Updates with Longreach's response in paragraph 4 Aug 1 (Reuters) - Private equity firm Longreach Group said it has sold its majority stake in Hong Kong-based medical device manufacturing solution provider Quasar Medical to Boyu Capital Partner. Longreach, which bought a 86% majority interest in Quasar in April 2019, said in a statement late on Monday that it and the minority shareholders from Quasar's founding family have sold all the issued and outstanding shares in the company, without disclosing the value of the transaction. | Established in 1988 and headquartered in Hong Kong, Quasar is a leading contract development and manufacturing organisation of advanced medical devices and counts Johnson & Johnson JNJ.N, Medtronic MDT.N and Abbott Laboratories ABT.N as their clients, the company's website showed. Updates with Longreach's response in paragraph 4 Aug 1 (Reuters) - Private equity firm Longreach Group said it has sold its majority stake in Hong Kong-based medical device manufacturing solution provider Quasar Medical to Boyu Capital Partner. Longreach, which bought a 86% majority interest in Quasar in April 2019, said in a statement late on Monday that it and the minority shareholders from Quasar's founding family have sold all the issued and outstanding shares in the company, without disclosing the value of the transaction. |
30850.0 | 2023-08-01 00:00:00 UTC | IDEXX (IDXX) Q2 Earnings and Revenues Beat Estimates, View Up | ABT | https://www.nasdaq.com/articles/idexx-idxx-q2-earnings-and-revenues-beat-estimates-view-up | nan | nan | IDEXX Laboratories, Inc. IDXX posted second-quarter 2023 earnings per share (EPS) of $2.67, a 71.2% surge year over year. The figure surpassed the Zacks Consensus Estimate by 9.9%.
In the second quarter of 2023, comparable constant-currency EPS of $2.70 improved a huge 76.5% year over year.
Revenues in Detail
Second-quarter revenues increased 9.7% year over year to $943.6 million. Organically, growth was 10%. The metric exceeded the Zacks Consensus Estimate by 1.7%.
The year-over-year upside was primarily driven by 11% reported organic growth in Companion Animal Group (“CAG”) revenues, and 10% reported and 9% organic growth in Water revenues.
IDEXX Laboratories, Inc. Price, Consensus and EPS Surprise
IDEXX Laboratories, Inc. price-consensus-eps-surprise-chart | IDEXX Laboratories, Inc. Quote
CAG Diagnostics’ recurring revenues increased 11% on a reported basis and 12% on an organic basis, supported by double-digit organic revenue growth in the United States and international regions.
Veterinary software, services and diagnostic imaging systems’ revenues increased 12% on a reported basis and 13% organically, reflecting continued high growth in recurring revenues and strong quarterly placements of cloud-based software solutions.
Segmental Analysis
IDEXX derives revenues from four operating segments — CAG, Water, Livestock, Poultry and Dairy (LPD) and Other.
In the second quarter, CAG revenues rose 11% on a reported and organic basis year over year to $866.7 million. Our model projected the segment’s revenues to be $833.3 million for the second quarter.
The Water segment’s revenues increased 10% (up 9% organically) year over year to $43 million. This figure compares with our model’s segmental projection of $42.3 million for the second quarter.
For the second quarter, LPD revenues were flat on a reported basis (up 1% organically) to $29.9 million. Per our model, projected revenues from this segment were $32.3 million.
Revenues in the Other segment fell 45.2% on a reported basis to $4 million. This figure compares with our segmental projection of $7.2 million for the second quarter.
Margins
Gross profit in the second quarter rose 11.4% to $572.9 million. The gross margin expanded 97 basis points (bps) to 60.7%.
Sales and marketing expenses rose 7.9% to $141 million, while general and administrative expenses increased 10% to $89.7 million. R&D expenses dropped 62.3% to $46.5 million.
Overall, the operating profit in the reported quarter was $296.1 million, up 65.4% year over year. The operating margin in the quarter expanded 1058 bps to 31.4%.
Financial Position
IDEXX exited the second quarter of 2023 with cash and cash equivalents of $132.8 million compared with $112.5 million recorded as of Dec 31, 2022. The total debt (including the current portion) at the end of the second quarter of 2023 was $771.8 million compared with the total debt of $769.4 million at the end of the fourth quarter of 2022.
The cumulative net cash provided by operating activities at the end of the second quarter of 2023 was $384.2 million compared with $180.6 million a year ago.
2023 Guidance
IDEXX provided an updated outlook for the full-year 2023.
The company expects total revenues in the range of $3.660 billion-$3.715 billion (the earlier projection was in the band of $3.615 billion-$3.700 billion), indicating growth of 8.5%-10% on a reported and organic basis from the earlier projected growth of 7.5%-10%. The Zacks Consensus Estimate for the same is currently pegged at $3.66 billion.
IDEXX’s full-year EPS guidance is now pegged in the range of $9.64-$9.90 (from the previous band of $9.33-$9.75). This updated guidance indicates reported growth of 20%-23%, up from the previous projected growth of 16%-22%. The Zacks Consensus Estimate for the full-year EPS is currently pegged at $9.64.
Our Take
IDEXX exited the second quarter of 2023 surpassing both earnings and revenue estimates. Organic gains in CAG Diagnostics revenues reflected the solid demand for veterinary services and the benefits of IDEXX execution drivers.
The company’s commercial teams drove record second-quarter global premium instrument placements. The updated guidance for the full year buoys optimism. Further, the expansion of both margins in the quarter appears promising.
Meanwhile, the LPD segment’s revenues remained flat as solid gains in the United States were offset by lower herd health screening levels. Across IDEXX’s testing modalities, challenging macroeconomic conditions continued to pressure same-store clinical visit levels in the quarter.
Zacks Rank and Key Picks
IDEXX Laboratories currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30851.0 | 2023-07-31 00:00:00 UTC | Avantor (AVTR) Q2 Earnings Lag Estimates, FY23 View Revised | ABT | https://www.nasdaq.com/articles/avantor-avtr-q2-earnings-lag-estimates-fy23-view-revised | nan | nan | Avantor, Inc. AVTR reported second-quarter 2023 adjusted earnings per share (EPS) of 28 cents, down 24.3% year over year. The bottom line missed the Zacks Consensus Estimate by a penny.
GAAP loss per share for the quarter was a penny against the year-ago period’s EPS of 28 cents.
Revenue Details
Revenues grossed $1.74 billion in the reported quarter, down 8.7% year over year. The metric lagged the Zacks Consensus Estimate by 3.1%.
Despite Avantor's foreign currency translation reflecting a 0.4% favorable impact in the reported quarter, organic sales declined 9.1%. Excluding COVID-19 headwinds, Avantor's core organic sales growth rate declined 6.5% during the reported period.
Per management, the year-over-year decline in the second quarter’s core organic sales reflected high single-digit declines in Biopharma and Advanced Technologies and Applied Materials, resulting from lower activity levels, constrained spending and continued inventory destocking by Avantor's customers. However, this was partially offset by ongoing growth in its healthcare and education and government end markets.
Segmental Analysis
Avantor reports financial results in three geographic segments based on customer location — the Americas, Europe and AMEA (Asia, Middle-East and Africa).
The Americas segment’s net sales were $1.03 billion, reflecting a reported decline of 11.3% year over year. Core organic sales fell 8.8% in the reported quarter, reflecting weaker customer demand in Biopharma and Advanced Technologies and Applied Materials. This compares to our projection of second-quarter segmental revenues of $1.06 billion.
Europe’s net sales were $606.9 million, reflecting a reported decrease of 2.7%, whereas core organic sales decreased 1.8% year over year. Per management, the decline in core organic sales was due to weakness in Biopharma and Education and Government end markets. This compares to our projection of second-quarter segmental revenues of $601.8 million.
AMEA arm’s net sales were $111.4 million, indicating a reported fall of 14.4% year over year. The core organic sales decreased 8.7% year over year due to declines in formulated solutions for Avantor’s semiconductor customers (down about 70% in the region) and sluggish demand in research settings across all end markets. However, this was partially offset by strong core organic revenue growth in bioproduction. This compares to our projection of second-quarter segmental revenues of $125.8 million.
Avantor, Inc. Price, Consensus and EPS Surprise
Avantor, Inc. price-consensus-eps-surprise-chart | Avantor, Inc. Quote
Margin Analysis
In the quarter under review, Avantor’s gross profit declined 8.9% to $590 million. The gross margin contracted 7 basis points (bps) to 33.8%.
We had projected 32.9% of gross margin for the second quarter.
Selling, general and administrative expenses rose 1.5% to $357.5 million year over year.
Operating profit totaled $232.5 million, down 21.3% from the prior-year quarter’s level. The operating margin in the quarter also contracted 214 bps to 13.3%.
Financial Position
Avantor exited second-quarter 2023 with cash and cash equivalents of $ 236.4 million compared with $294.6 million at the end of the first quarter. Total debt at the end of second-quarter 2023 was $5.88 billion compared with $6.06 billion at the first-quarter end.
Cumulative net cash flow from operating activities at the end of second-quarter 2023 was $387.7 million compared with $379.7 million a year ago.
Guidance
Avantor has revised its outlook for 2023.
The company now expects revenues in the range of $6.89 billion-$7.04 billion, reflecting organic revenue declines of 9-7% and core organic revenue declines of 6.5-4.5%. This compares with prior organic and core organic revenue outlooks of declines of 3-1% and decline of 0.5% to growth of 1.5%, respectively. The Zacks Consensus Estimate for the same is currently pegged at $7.32 billion.
Avantor expects its adjusted EPS to now lie within $1.04-$1.12 for the full year, down from the earlier projection of $1.28-$1.36. The Zacks Consensus Estimate for the same is pegged at $1.29.
Our Take
Avantor exited the second quarter of 2023 with lower-than-expected results. The dismal top-line and bottom-line performances in the quarter were disappointing. The decline in segmental revenues and weakness in end markets were discouraging. Per management, the macroeconomic contraction over the past two quarters in the Eurozone, including the recession in Germany, also put pressure on Equipment and Instrument sales. This raises our apprehension about the stock. The contraction of both margins also does not bode well.
On a positive note, strong core organic revenue growth in bioproduction in the reported quarter looked promising. On the second-quarterearnings call management confirmed that Avantor’s focus on cell and gene therapy has been yielding double-digit growth in several critical product lines targeting these workflows. Management also confirmed that Avantor launched integrated pressure sensors for its Masterflex, MasterSense pumps. The company also introduced novel volume sampling systems to support Cell & Gene Therapy workflows, Cryogenic Storage Vials to support long-term storage of critical biological samples and a new robotics tip line, the J.T.Baker HT2. These look promising for the stock.
Zacks Rank and Stocks to Consider
Avantor currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Avantor, Inc. (AVTR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Avantor, Inc. (AVTR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Avantor, Inc. (AVTR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Avantor, Inc. (AVTR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30852.0 | 2023-07-31 00:00:00 UTC | Glucose Monitor Maker DexCom In Buy Zone After Gapping Higher | ABT | https://www.nasdaq.com/articles/glucose-monitor-maker-dexcom-in-buy-zone-after-gapping-higher | nan | nan | Glucose-monitor maker DexCom Inc. (NASDAQ: DXCM) was among the top three gainers within the healthcare sector on July 28, advancing 2.33% in the season after gapping higher at the open.
The company reported second-quarter results that came in ahead of Wall Street’s expectations. Earnings were 34 cents a share on revenue of $871.3 million, increases of 100% and 25%, respectively, over last year’s second quarter.
U.S. revenue was up 21%, but international revenue growth was even stronger, at 38%. Domestic business still constitutes the bulk of revenue, at 71%.
DexCom specializes in continuous glucose monitoring (CGM) systems for people with diabetes. Its CGM devices allow users to track their glucose levels in real-time, giving patients valuable data to manage their conditions more effectively and make better decisions about their insulin dosing and dietary choices.
Rivals in the space include Abbott Laboratories (NYSE: ABT) and Medtronic plc (NYSE: MDT). The company tailors its software to address different needs for various patients’ glucose control.
Reducing Costs & Patient Admissions
In a June investors' day presentation, DexCom said its CGM has demonstrated a 35% reduction in inpatient admissions, an approximately 50% reduction in inpatient visits, and a 14% reduction in outpatient visit costs.
The company also said that it sees plenty of potential with domestic growth, but suggested the opportunity for international market share was even greater. As is the case with the U.S. market, international growth is dependent on insurance reimbursements.
So far, it’s received broad reimbursement for its G-series of monitors, and tiered or limited reimbursement for other products.
In the U.S., according to the company, Dexcom is the most-covered CGM with the lowest out-of-pocket expenses.
In 2024, the company aims to launch a glucose-sensing product designed for people with Type 2 diabetes who are not on insulin.
Boosted Full-Year Revenue Guidance
In its second-quarter report, DexCom boosted its full-year guidance. It expects revenue between $3.5 billion and $3.55 billion, an increase of 21% at the midpoint. Analysts’ forecasts called for revenue of $3.5 billion, so investors were cheered by the slightly better-than-expected outlook.
In its investors’ day presentation, DexCom guided toward $4 billion to $4.5 billion in revenue for 2024, and $4.6 billion to $5.1 billion for 2025.
Wall Street expects the company to grow earnings by 40% this year, to $1.22 a share, with earnings growth of 30% next year, to $1.58 per share.
Immediately after the second-quarter report, five analysts boosted their price targets on the stock, as you can see using MarketBeat’s DexCom analyst ratings. The consensus view is “moderate buy,” with a price target of $138.50, an upside of 4.62%.
For now, it appears that investors and analysts are pleased with the company’s growth prospects, although price increases have been relatively slow and steady, rather than explosive.
Anticipating Further Improvements
In a note following the earnings report, Morningstar analyst Debbie Wang wrote that Morningstar’s Debbie Wang wrote, “This quarter was a big step in the right direction, and we anticipate further improvements through 2024 as the manufacturing of G7 reaches scale.”
The company has been ramping up its production capabilities. It’s scaling production for its G7 model in San Diego and Mesa, Arizona, as well as opening production facilities in Ireland and Malaysia.
The stock has advanced 9.10% in the past three months and 16.90% year-to-date. On a one-year basis, shares are up 52.18%.
In the post-earnings price action, after the stock gapped up 4.84% in the first five minutes, it made further advances in the session’s first 25 minutes, then began selling off, ending the day with a gain of 2.33%, without closing the gap.
On July 28, the stock cleared a short area of consolidation above the 50-day moving average before reversing lower. It remains in a buy zone, as long as it doesn’t decline below its 50-day average, or unless it rallies more than 5% above its July 28 high of $139.55.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Rivals in the space include Abbott Laboratories (NYSE: ABT) and Medtronic plc (NYSE: MDT). Glucose-monitor maker DexCom Inc. (NASDAQ: DXCM) was among the top three gainers within the healthcare sector on July 28, advancing 2.33% in the season after gapping higher at the open. Its CGM devices allow users to track their glucose levels in real-time, giving patients valuable data to manage their conditions more effectively and make better decisions about their insulin dosing and dietary choices. | Rivals in the space include Abbott Laboratories (NYSE: ABT) and Medtronic plc (NYSE: MDT). Reducing Costs & Patient Admissions In a June investors' day presentation, DexCom said its CGM has demonstrated a 35% reduction in inpatient admissions, an approximately 50% reduction in inpatient visits, and a 14% reduction in outpatient visit costs. Boosted Full-Year Revenue Guidance In its second-quarter report, DexCom boosted its full-year guidance. | Rivals in the space include Abbott Laboratories (NYSE: ABT) and Medtronic plc (NYSE: MDT). In its investors’ day presentation, DexCom guided toward $4 billion to $4.5 billion in revenue for 2024, and $4.6 billion to $5.1 billion for 2025. Wall Street expects the company to grow earnings by 40% this year, to $1.22 a share, with earnings growth of 30% next year, to $1.58 per share. | Rivals in the space include Abbott Laboratories (NYSE: ABT) and Medtronic plc (NYSE: MDT). U.S. revenue was up 21%, but international revenue growth was even stronger, at 38%. DexCom specializes in continuous glucose monitoring (CGM) systems for people with diabetes. |
30853.0 | 2023-07-31 00:00:00 UTC | 4 Medical Product Stocks to Buy Amid Recovering Prospects | ABT | https://www.nasdaq.com/articles/4-medical-product-stocks-to-buy-amid-recovering-prospects | nan | nan | The medical sector and other global economies are facing macroeconomic challenges such as supply-chain constraints, increased material costs and shortage of workers after the pandemic crisis. Despite the revenue recovery in the first half of 2023, following gradual economic reopening in 2022, the margins were affected by these headwinds. The Zacks Medical – Products industry bore the brunt along with broader market participants. Revenues are expected to grow from introduction of new products and expansion into new markets. Some medical procedures related to heart rhythm, heart surgery, brain blood vessels and blood sugar have a high demand trend, which buoys optimism. Although the weakness in the industry’s bottom line is likely to continue in the second half of 2023, the impact of rising costs is likely to alleviate as the year progresses. The industry players are increasing prices of their products and services, which is helping offset the impact of rising costs and expenses. The demand for medical products is also improving steadily in Europe and other markets. Meanwhile, COVID-19 impacts remain uncertain. However, the declining demand for COVID-19 related products continues to hurt revenues.
Meanwhile, industry players like Abbott Laboratories ABT, Stryker SYK, Zimmer Biomet ZBH and Haemonetics HAE have adapted well to changing consumer preferences and are still witnessing an uptrend in their share prices.
Industry Description
The industry includes companies providing medical products and cutting-edge technologies for diagnosis, observation, consultation, treatment and other healthcare services. These companies are primarily focused on research and development, and primarily cater to vital therapeutic areas like cardiovascular, nephrology and urology devices, to name a few. Strengthening dollar and labor shortage are hurting their top-line growth. Lockdowns across several countries, notably China, in the first half of 2022 led to significant supply-chain disruptions. Recent inflationary pressure and labor shortages are weighing on gross and operating margins of the industry players. The trend is likely to continue for the rest of 2023. However, rising demand for medical procedures, along with cost-cutting initiatives, is likely to drive the industry’s performance going forward.
Major Trends Shaping the Future of the Medical Products Industry
AI, Medical Mechatronics & Robotics: The rising adoption of minimally-invasive robot-assisted surgeries, self-automated home-based care, use of IT for quick and improved patient care and the shift of the payment system to a value-based model underscore the growing influence of AI in the Medical Products space. In fact, mechatronics — a high-end technology incorporating electronics, machine learning and mechanical engineering — is rapidly becoming a defining characteristic of the space. There are several companies that have shown substantial prowess when it comes to their involvement in AI, robotics and medical mechatronics. Advancements in robot-assisted surgical platforms continue to be crucial with respect to minimally-invasive surgery that helps in reducing the trauma associated with open surgery. With respect to Mechatronics, the benefits of the same have been demonstrated in the form of 3D printing, which has altered the face of the medical devices industry. Currently, 3D printing is being used to print stem cells, blood vessels, heart tissues, prosthetic organs and skin.
Rising Demand for IVD: The COVID-19 outbreak led to a rise in global demand for diagnostic testing kits in order to curb the spread of the virus. Testing became the need of the hour and that led to a shift in the pipeline of IVD products, with a large number of rapid, point-of-care devices going into development. Companies not only received emergency use authorization from the FDA but also bolstered production to aid testing shortages. The industry players anticipate significant demand for rapid diagnostic testing in the future as well and are well poised to capitalize on the same.
Emerging Markets Hold Promise: Given the rising medical awareness and economic prosperity, emerging economies have been witnessing solid demand for medical products. An aging population, relaxed regulations, cheap skilled labor, increasing wealth and government focus on healthcare infrastructure make these markets extremely lucrative for global medical device players.
Zacks Industry Rank
The Zacks Medical Products industry falls within the broader Zacks Medical sector.
It currently carries a Zacks Industry Rank #168, which places it in the bottom 33% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Before we present a few medical product stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Performance
The industry has underperformed its own sector and the Zacks S&P 500 Composite in the past year.
Stocks in this industry have collectively gained 0.8% against the Zacks Medical sector’s decline of 4.4%. The S&P 500 has increased 11.5% in the same time frame.
One Year Price Performance
Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 22.7X compared with the S&P 500’s 20.2X and the sector’s 22.9X.
Over the last five years, the industry has traded as high as 29.8X and as low as 19.1X, with the median being at 23.7X, as the charts show.
Price-to-Earnings Forward Twelve Months (F12M)
Price-to-Earnings Forward Twelve Months (F12M)
4 Promising Medical Product Stocks
Abbott Laboratories: It discovers, develops, manufactures and sells a diversified line of health care products. The company operates through four segments — Established Pharmaceuticals Division (EPD), Medical Devices, Nutrition and Diagnostics.
Abbott had an encouraging first-quarter results, led by double-digit growth in Medical Devices, EPD and Nutrition. Within EPD, sales increased 11% in the quarter led by strong performance in Brazil, China and Southeast Asia. The Diabetes Care business, a part of Medical devices segment, continued to benefit from the growing sales of its sensor-based continuous glucose monitoring system, FreeStyle Libre. However, the top line in the first quarter reflected unfavorable year-over-year comparison due to high demand for COVID-related products and services in 2022. Following its strong first-quarter 2023 results, the company expects total revenue growth of at least high-single digits, excluding COVID-19 testing-related sales. COVID testing-related sales are expected to be around $1.5 billion in 2023. Adjusted EPS is anticipated in the range of $4.30-$4.50. Currently, the company carries a Zacks Rank #2 (Buy).
For this Abbott Park, IL-based company, the Zacks Consensus Estimate for 2023 revenues is pegged at $39.71 billion. The consensus mark for earnings is pinned at $4.40 per share. The company has a trailing four-quarter average earnings surprise of 12.44%.
Price and Consensus: ABT
Stryker: It is one of the world’s largest medical device companies operating in the global orthopedic market. The company has three business segments — Orthopaedics, MedSurg and Neurotechnology & Spine. It continues to deliver strong organic sales growth on the back of robust demand for its MedSurg and Neurotechnology businesses, led by Endoscopy, Instruments and Neurocranial.
Orthopedics and Spine businesses are also on an encouraging growth path, reflecting procedural recovery throughout the quarter. Internationally, the company continues to post strong organic growth, highlighted by robust organic growth in Europe and emerging markets. Stryker continues to witness strong demand for its robotic-arm assisted surgery platform, Mako, on the back of its unique features and healthy order book despite financial constraints stemming from the COVID-19 pandemic.
However, hospital staffing pressures weighed on pockets around the globe, impeding growth. Following its strong first-quarter results, the company expects total revenue growth at a constant exchange rate (CER) of 8-9% for 2023. Adjusted EPS is now expected in the band of $10.05-$10.25, up from the prior guidance of $9.85-$10.15. Currently, the company carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For this Kalamazoo, MI-based company, the Zacks Consensus Estimate for 2023 revenues is pegged at $19.99 billion. The consensus mark for earnings is pinned at $10.16 per share. The company has a trailing four-quarter average earnings surprise of 1.60%.
Price and Consensus: SYK
Zimmer Biomet: It is a leading musculoskeletal healthcare company that designs, manufactures and markets orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants; and related surgical products.
The company ended the first quarter with better-than-expected earnings and revenues. Each of its geographic segments and product divisions recorded year-over-year sales growth at CER. Even amid the challenging macroeconomic conditions, expansion in the company’s adjusted gross and operating margins is encouraging.
Despite the near-term pressure, Zimmer Biomet is putting efforts for business recovery. Meanwhile, the spin-off of its dental & spine arm as part of its ongoing transformation to accelerate growth and drive value creation looks promising. The last few quarters witnessed gradual stability in the global musculoskeletal market with better-than-expected sales growth in certain geographies, banking on improved procedural volume. Following encouraging first-quarter results, the company expects revenues and adjusted earnings to grow 5-6% and 7.4-8.9%, respectively, compared with the 2022 metrics. Currently, the company carries a Zacks Rank #2.
For this Warsaw, IN-based company, the Zacks Consensus Estimate for 2023 revenues is pegged at $7.34 billion. The consensus mark for earnings is pinned at $7.46 per share. The company has a trailing four-quarter average earnings surprise of 7.38%.
Price and Consensus: ZBH
Haemonetics: It provides blood management solutions to customers encompassing blood and plasma collectors, hospitals and health care providers globally. The company’s portfolio of integrated devices, information management and consulting services offers blood management solutions for each facet of the blood supply chain, facilitating better clinical outcomes. The robust performance of the Plasma and Hospital business, with continued strength in the Hemostasis Management product line, instills optimism. Robust contributions from the Vascular Closure business also seem promising. The expansion of both margins is an added advantage.
The company has been witnessing strong growth in Plasma franchise for quite some time. In the global plasma market, Haemonetics holds an approximate 80% equity. It is currently witnessing plasma market growth above historic rates, driven by an industry striving to double collections by 2025 and the rising demand for plasma-based medicines. Strong volume growth in plasma and hospitals, including additional savings from the Operational Excellence Program, is likely to drive the company’s performance going forward in 2023.
Following the robust fiscal fourth-quarter 2023 results, Haemonetics expects GAAP total revenues to grow in the range of 4-7% on a reported basis. Organic revenue growth is currently expected in the band of 5-8%. HAE anticipates adjusted earnings to lie between $3.45 and $3.75 per share.
For this Boston, MA-based company, the Zacks Consensus Estimate for fiscal 2023 revenues indicates an improvement of 6.6% year over year. The consensus estimate for earnings implies year-over-year growth of 18.2%. The company has a trailing four-quarter earnings surprise of 12.21%, on average. Presently, Haemonetics carries a Zacks Rank of 2.
Price and Consensus: HAE
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, industry players like Abbott Laboratories ABT, Stryker SYK, Zimmer Biomet ZBH and Haemonetics HAE have adapted well to changing consumer preferences and are still witnessing an uptrend in their share prices. Price and Consensus: ABT Stryker: It is one of the world’s largest medical device companies operating in the global orthopedic market. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report To read this article on Zacks.com click here. | Meanwhile, industry players like Abbott Laboratories ABT, Stryker SYK, Zimmer Biomet ZBH and Haemonetics HAE have adapted well to changing consumer preferences and are still witnessing an uptrend in their share prices. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report To read this article on Zacks.com click here. Price and Consensus: ABT Stryker: It is one of the world’s largest medical device companies operating in the global orthopedic market. | Meanwhile, industry players like Abbott Laboratories ABT, Stryker SYK, Zimmer Biomet ZBH and Haemonetics HAE have adapted well to changing consumer preferences and are still witnessing an uptrend in their share prices. Price and Consensus: ABT Stryker: It is one of the world’s largest medical device companies operating in the global orthopedic market. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report To read this article on Zacks.com click here. | Meanwhile, industry players like Abbott Laboratories ABT, Stryker SYK, Zimmer Biomet ZBH and Haemonetics HAE have adapted well to changing consumer preferences and are still witnessing an uptrend in their share prices. Price and Consensus: ABT Stryker: It is one of the world’s largest medical device companies operating in the global orthopedic market. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Stryker Corporation (SYK) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30854.0 | 2023-07-28 00:00:00 UTC | Integer Holdings (ITGR) Q2 Earnings Top Estimates, FY23 View Up | ABT | https://www.nasdaq.com/articles/integer-holdings-itgr-q2-earnings-top-estimates-fy23-view-up | nan | nan | Integer Holdings Corporation ITGR delivered adjusted earnings per share (EPS) of $1.14 in the second quarter of 2023, which improved 9.6% year over year. The figure topped the Zacks Consensus Estimate by 15.2%.
The adjustments include expenses related to the amortization of intangible assets, and restructuring and restructuring-related charges, among others.
GAAP EPS for the quarter was 71 cents, reflecting an improvement of 14.5% year over year.
Revenues in Detail
Integer Holdings registered revenues of $400 million in the second quarter, up 14.3% year over year. The figure surpassed the Zacks Consensus Estimate by 8.9%.
Organically, revenues increased 14.2%.
Robust segmental performances drove the company’s top line in the reported period.
Segmental Analysis
Integer Holdings operates through two segments — Medical Sales and Non-Medical Sales.
Medical Sales reported revenues of $389.1 million, up 14.5% year over year on a reported and 14.4% on an organic basis.
This figure compares to our Medical Sales second-quarter projection of $351.9 million.
Medical Sales has three product lines — Advanced Surgical, Orthopedics & Portable Medical (AS&O); Cardio & Vascular; and Cardiac Rhythm Management & Neuromodulation.
Integer Holdings’ AS&O revenues amounted to $27.2 million, up 16.8% year over year both on a reported and organic basis. Per management, this resulted from increased price and demand as a result of the execution of the multi-year Portable Medical exit announced in 2022 and the low-single-digit growth of Advanced Surgical and Orthopedics.
This compares to our second-quarter projection of $26.7 million for AS&O revenues.
Revenues at the Cardio & Vascular business totaled $208.5 million, up 15.4% from the prior-year quarter on a reported basis and up 15.3% organically. The solid year-over-year performance was driven by continued strong demand across all markets, growth in key products such as guidewires, new product ramps in electrophysiology, and supply chain improvements.
This compares to our second-quarter projection of $185 million.
Revenues at the Cardiac Rhythm Management & Neuromodulation business were $153.4 million, up 12.8% year over year both on a reported and organic basis. The business was driven by strong demand, including double-digit growth from emerging customers with premarket approval products and supply chain improvements.
This compares to our second-quarter projection of $140.2 million for the product line.
Revenues in the Non-Medical segment totaled $10.9 million, up 6.7% year over year both on a reported and organic basis. This was driven by strong demand in military and environmental market segments. However, this was partially offset by a decline in the energy market.
This figure compares to our segmental projection of $13.1 million for the second quarter.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings Corporation price-consensus-eps-surprise-chart | Integer Holdings Corporation Quote
Margin Analysis
Integer Holdings generated a gross profit of $105.8 million in the second quarter, up 13.9% year over year. However, the gross margin in the reported quarter contracted 9 basis points (bps) to 26.4%.
We had projected 27.6% of gross margin for the second quarter.
Selling, general and administrative expenses were $45.8 million, up 9.7% year over year. Research, development and engineering costs were $16.9 million in the quarter, up 13.5% year over year. Adjusted operating expenses of $62.7 million increased 10.7% year over year.
Adjusted operating profit totaled $43.1 million, reflecting an 18.9% uptick from the prior-year quarter. Adjusted operating margin in the second quarter expanded 42 bps to 10.8%.
Financial Position
Integer Holdings exited the second quarter of 2023 with cash and cash equivalents of $38.6 million compared with $40.6 million at the end of the first quarter. Total debt (including the current portion) at the end of second-quarter 2023 was $985.4 million compared with $1 billion at the first-quarter end.
Cumulative net cash flow from operating activities at the end of second-quarter 2023 was $62.3 million compared with $37 million a year ago.
2023 Guidance
Integer Holdings has upped its financial outlook for 2023 on the back of continued strong customer demand across its product lines.
For 2023, the company now expects revenues in the range of $1,530 million-$1,550 million (suggesting an improvement of 11-13% from the 2022 reported figure), up from the earlier projection of $1,470 million-$1,500 million (suggesting an improvement of 7-9% from the 2022 reported figure). The Zacks Consensus Estimate for the same is pegged at $1.49 billion.
The company now expects full-year adjusted EPS to be in the band of $4.23-$4.43 (suggesting a rise of 9-14% from the 2022 reported figure), up from the earlier projection of $4.00-$4.30 (suggesting a rise of 3-11% from the 2022 reported figure). The Zacks Consensus Estimate for the same is pegged at $4.15.
Our Take
Integer Holdings exited the second quarter of 2023 with better-than-expected results. The strong year-over-year top-line and bottom-line performances were impressive. Robust performances by both segments and strength in all three product lines of the Medical Sales segment were encouraging. The expansion of the adjusted operating margin bodes well for the stock.
However, the rising operating costs putting pressure on the gross margin, leading to its contraction, is discouraging. Integer Holdings continuing to navigate a challenging labor and supply chain environment raises our apprehension.
Zacks Rank and Other Key Picks
Integer Holdings currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30855.0 | 2023-07-28 00:00:00 UTC | Amedisys (AMED) Q2 Earnings Beat Estimates, Margins Dip | ABT | https://www.nasdaq.com/articles/amedisys-amed-q2-earnings-beat-estimates-margins-dip | nan | nan | Amedisys, Inc. AMED reported adjusted earnings per share (EPS) of $1.37 in the second quarter of 2023, down 6.8% from the year-ago quarter’s figure. The bottom line surpassed the Zacks Consensus Estimate by 28%.
The quarter’s adjustments include certain acquisition and integration costs, clinical optimization and reorganization costs and executive board of directors/CEO transition awards, among others.
GAAP loss per share in the second quarter was $2.46 compared with the year-ago GAAP EPS of 91 cents.
Net service revenues totaled $552.9 million, down 0.9% year over year. The top line also missed the Zacks Consensus Estimate by 2.5%.
Segments in Detail
In February 2023, Amedisys divested its Personal Care division to HouseWorks, LLC.
Net service revenues from the Home Health Division totaled $349.8 million in the quarter, up 2.3% year over year. Within the segment, Medicare revenues of $219.8 million dropped 0.9% year over year. Non-Medicare revenues increased 8.4% to $130 million. This figure compares with our second quarter’s Home Health model’s projection of $352.1 million.
Within the Hospice Division, net service revenues were $199.2 million (up 0.4% year over year), including Medicare revenues of $188.2 million (up 0.4%) and non-Medicare revenues of $11 million (up 0.9%). The figure compares with our second quarter’s Hospice model’s projection of $194.3 million.
The High Acuity Care segment reported net service revenues of $4 million in the second quarter, surging 48.1% from the year-ago quarter’s figure of $2.7 million. The Corporate segment did not register any recognizable revenues in the second quarter.
Margins
The gross profit for the company improved 5.7% to $255.5 million in the quarter under review. Yet, the gross margin contracted 289 basis points (bps) to 46.2%.
Expenses on salaries and benefits fell 2.1% to $125.1 million. Other expenses rose 42.7% to $78.4 million. The adjusted operating profit amounted to $52.1 million, down 11.7% from the year-ago quarter’s levels. The adjusted operating margin contracted 116 bps to 9.4% from the prior-year quarter’s level.
Liquidity and Cash Position
Amedisys exited the second quarter with cash and cash equivalents of $95.4 million compared with $49.4 million at the end of first-quarter 2023. The company's long-term obligations (excluding the current portion) were $369.9 million at the end of the second quarter compared with $373.2 million at the end of first-quarter 2023.
Amedisys, Inc. Price, Consensus and EPS Surprise
Amedisys, Inc. price-consensus-eps-surprise-chart | Amedisys, Inc. Quote
Cumulative net cash provided by operating activities at the end of the second quarter was $60.8 million compared with $25.9 million a year ago.
Guidance
In light of the pending merger of the Amedisys with UnitedHealth Group Incorporated, the company has decided to suspend guidance on 2023 financial performance.
Our Take
Amedisys ended the second-quarter 2023 on a mixed note with better-than -expected earnings while revenues missed the mark. The company is dealing with the continuous shortage of clinical labor, nursing in particular, has been challenging. Mounting costs and expenses and contraction in margins are other downsides.
Amedisys recently announced that it is going to be acquired by UnitedHealth Group Incorporated unit, Optum, scraping a previous all-stock deal offer from Option Care Health. By combining Optum’s extensive value-based care expertise with Amedisys’ dedication to quality and care innovation in the home and its employees’ patient-first culture, these factors can significantly improve the health outcomes and experiences of more patients at lower costs, resulting in continued growth.
Zacks Rank and Key Picks
Amedisys currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9% You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The stock carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Abbott Laboratories (ABT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Amedisys, Inc. (AMED) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Amedisys, Inc. (AMED) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Amedisys, Inc. (AMED) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Amedisys, Inc. (AMED) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30856.0 | 2023-07-28 00:00:00 UTC | Integra's (IART) Q2 Earnings Top Estimates, 2023 View Cut | ABT | https://www.nasdaq.com/articles/integras-iart-q2-earnings-top-estimates-2023-view-cut | nan | nan | Integra LifeSciences Holdings Corporation IART delivered adjusted earnings per share (EPS) of 71 cents in the seccond quarter of 2023, down 13.4% year over year. The metric surpassed the Zacks Consensus Estimate by 24.6%.
The adjustment excludes the impact of certain non-recurring charges like amortization expenses, Boston recall and EU Medical Device Regulation charges, among others.
GAAP EPS in the second quarter was 5 cents, a 90.6% plunge from 54 cents in the year-ago quarter.
Revenue Discussion
Total revenues in the reported quarter fell 4.2% year over year to $381.3 million. The metric exceeded the Zacks Consensus Estimate by 1.9%. Organically, revenues dropped 2.7% year over year.
Segmental Details
Coming to product categories, revenues in the Codman Specialty Surgical (“CSS”) segment rose 5.1% year over year on a reported basis to $271 million (organically, up 6.3%). This improvement can be attributed to high single-digit growth in Advanced Energy driven by CUSA capital and disposables, mid-single-digit growth in CSF management, driven by Certas Plus valves, mid-single-digit growth in Dural Access and Repair driven by Mayfield and DuraGen. This figure compares with our second quarter’s CSS model’s projection of $261 million.
Tissue Technologies revenues totaled $110.2 million in the second quarter, down 21.2% year over year on a reported basis and 19.7% on an organic basis. The downside was due to the impact of lost revenues and return provision for the Boston recall that was partially offset by double digit growth from MicroMatrix, Cytal, MediHoney and nerve franchise. This figure compares with our second quarter’s Tissue Technologies model’s projection of $137.9 million.
Margin Trend
In the reported quarter, gross profit totaled $207 million, down 16.9% year over year. The gross margin contracted 840 basis points (bps) to 54.3%. The company-adjusted gross margin was 67.6%.
Selling, general and administrative expenses rose 2.6% to $164.9 million in the quarter under review, while research and development expenses increased 3.9% to $26.6 million.
Integra LifeSciences Holdings Corporation Price, Consensus and EPS Surprise
Integra LifeSciences Holdings Corporation price-consensus-eps-surprise-chart | Integra LifeSciences Holdings Corporation Quote
Overall, adjusted operating profit were $15.5 million, up 75.4% year over year. Adjusted operating margin saw an 1180-bps contraction year over year to 4.1%.
Financial Position
Integra exited the second quarter with cash and cash equivalents of $309.2 million, up from $307.4 million at the end of first-quarter 2023.
Cumulative net cash flow from operating activities at the end of the second quarter was $28.3 million compared with $26.2 million at the end of first-quarter 2023.
Guidance
The company updated its financial guidance for 2023.
For the full year, IART projects revenues in the band of $1.55-$1.56 billion (down from the previous guidance of $1.60-$1.62 billion). This suggests reported growth of approximately (0.6%)-0.2% and organic growth of 0.3-1.1%.
The Zacks Consensus Estimate for the same is pegged at $1.55 billion.
The company projects adjusted EPS guidance for 2023 in the band of $3.10-$3.18 (down from previous guidance of $3.43-$3.51). The Zacks Consensus Estimate for the same is pegged at $3.12.
Integra also provided its guidance for the third quarter of 2023.
For the third quarter, Integra expects revenues in the range of $386-$390 million, which suggests growth of approximately 0.2% to 1.3% and organic growth of 0.3-1.3% year over year. The Zacks Consensus Estimate for the same is pegged at $387.2 million.
Adjusted EPS is estimated in the range of 76-80 cents. This considers the impact of the acceleration of Boston recall.
The Zacks Consensus Estimate for adjusted EPS is pegged at 84 cents.
Our Take
Integra exited the second quarter of 2023 with better-than-expected earnings and revenues.
In CSS, the company registered strong growth on the back of high single-digit growth in Advanced Energy driven by CUSA capital and disposables and mid-single-digit growth in CSF management driven by Certas Plus valve. It also registered double-digit growth from MicroMatrix, Cytal, MediHoney and nerve franchise. In the reported quarter, IART expanded the global DuraGen portfolio with approvals in China and Japan and launched CUSA Lap Tip in Japan, Canada, South Africa and Israel.
On the flip side, unfavorable product and geographic mix and Boston quality project expenses are exerting pressure on the bottom line. Escalating costs and the contraction of both margins are discouraging. The company also narrowed its 2023 view, which is a concern.
Zacks Rank & Key Picks
Integra currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9% You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30857.0 | 2023-07-28 00:00:00 UTC | DexCom (DXCM) Q2 Earnings Beat Estimates, Volumes Remain Strong | ABT | https://www.nasdaq.com/articles/dexcom-dxcm-q2-earnings-beat-estimates-volumes-remain-strong | nan | nan | DexCom, Inc. DXCM reported second-quarter 2023 adjusted earnings per share (EPS) of 34 cents, which beat the Zacks Consensus Estimate of 22 cents by 54.5%. The company reported earnings of 17 cents per share in the prior-year quarter.
DXCM registered GAAP net income per share of 28 cents, up from the year-ago quarter’s figure of 12 cents.
Shares of DexCom were up 2.8% in after-hours trading on Jul 27, following better-than-expected quarterly results. The stock gained 61.3% year to date compared with the industry’s growth of 15.5%. The broader S&P 500 Index has moved up 20.2% in the same period.
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Revenue Details
Total revenues grew 25% (26% on an organic basis) to $871.3 million on a year-over-year basis and beat the Zacks Consensus Estimate by 4.1%. Strong revenue growth was driven by rising volumes on the back of increasing global awareness of the benefits of real-time Continuous Glucose Monitoring and strong customer additions.
Segmental Details
Sensor and other revenues(89% of total revenues) increased 30% on a year-over-year basis to $778 million. Hardware revenues (11%) decreased 5% year over year to $93.3 million.
Geographical Details
U.S. revenues (71% of total revenues) increased 21% on a year-over-year basis to $616.6 million. International revenues (29%) improved 38% (40% on an organic basis) year over year to $254.7 million.
Margin Analysis
Gross profit totaled $546.4 million, up 21.6% from the prior-year quarter’s level. DexCom reported gross margin (as a percentage of revenues) of 62.7%, which contracted approximately 180 basis points year over year.
Research and development expenses amounted to $119.3 million, down 2% year over year. Selling, general and administrative expenses totaled $297.3 million, up 19.4% year over year.
The company reported total operating expenses of $418.3 million, up 12.3% from the prior-year period’s number. Operating margin (as a percentage of revenues) was 14.7%, expanding 360 bps year over year.
Financial Position
DXCM exited the second quarter with $3.64 billion in cash, cash equivalents and marketable securities compared with $2.57 billion in the preceding quarter.
Total assets amounted to $6.82 billion compared with $5.52 billion on a sequential basis.
2023 Guidance
DexCom raised its revenue guidance for 2023 but reiterated the earnings outlook. The company now expects revenues in the range of $3.5-$3.55 billion, implying 17-21% year-over-year growth. The Zacks Consensus Estimate for the same is pegged at $3.46 billion. Previously, DXCM expected revenues in the range of $3.4-$3.515 billion.
The company continues to expect adjusted gross margin of approximately 63% versus 62-63% previously. Adjusted operating margin is anticipated to be approximately 17%, up from the previous projection of 16.5%.
Wrapping Up
DexCom exited second-quarter 2023 on a strong note, wherein both earnings and revenues beat estimates. Impressive contributions from the Sensor segment, and domestic and international revenue growth were the key catalysts. Moreover, expansion of coverage for CGM systems during the quarter supported growth that is likely to continue for the rest of 2023. The availability of new sensors like G6 & G7 in new international markets is also boosting revenue growth.
Additionally, the glucose monitoring market presents significant commercial opportunities for the company. DexCom’s prospects in alternative markets such as non-intensive diabetes management, hospital, gestational, pre-diabetes and obesity are likely to provide it with a competitive edge in the MedTech space.
Apart from making continued advancements in terms of its key strategic objectives, the company continued to have strong new patient additions in the quarter.
The expansion of gross and operating margins buoys optimism. However, cut-throat competition in the market for blood & glucose monitoring devices remains another concern.
DexCom, Inc. Price, Consensus and EPS Surprise
DexCom, Inc. price-consensus-eps-surprise-chart | DexCom, Inc. Quote
Zacks Rank and Other Stocks to Consider
Currently, DexCom carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 at present, reported second-quarter 2023 adjusted earnings per share (EPS) of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report DexCom, Inc. (DXCM) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30858.0 | 2023-07-28 00:00:00 UTC | Neogen (NEOG) Q4 Earnings Beat Estimates, Gross Margin Up | ABT | https://www.nasdaq.com/articles/neogen-neog-q4-earnings-beat-estimates-gross-margin-up | nan | nan | Neogen Corporation NEOG reported fourth-quarter fiscal 2023 earnings per share (EPS) of 14 cents, down 33.3% year over year. However, the reported figure topped the Zacks Consensus Estimate by 40%.
The full-year adjusted EPS was 56 cents per share, down 23.3% compared with the year-ago figure. However, the metric beat the Zacks Consensus Estimate by 9.8%.
Revenues for the fourth quarter increased 72.6% on a year-over-year basis to $241.8 million. Core revenue growth was registered at 2%, while acquisitions contributed 71.8%. The metric beat the Zacks Consensus Estimate by 6.4%. Per the management, the fourth quarter was the 124th out of the past 130 quarters in which Neogen reported a year-over-year revenue increase.
The company reported revenues of $822.4 million in fiscal 2023, which rose 56% from the year-ago period. The same beat the Zacks Consensus Estimate by 1.8%.
Segments in Detail
Within segments, Neogen registered Food Safety revenues of $169.3 million in the fiscal fourth quarter, a stupendous improvement from $67.4 million in the prior-year period, led by 149.3% growth from acquisitions. The reported figure also exceeded our model’s segmental projection of $134.4 million for the fourth quarter.
The 3.9% core growth within this segment was led by the Culture Media & Other category, which benefited from strong growth in food quality and nutritional analysis products in the Megazyme business.
Neogen Corporation Price, Consensus and EPS Surprise
Neogen Corporation price-consensus-eps-surprise-chart | Neogen Corporation Quote
Revenues from Animal Safety were $72.5 million, down 0.3% year over year. Within the segment, the core growth of 0.3% was led by the Veterinary Instruments & Disposables product category, which benefited from a new line of business with a large retail customer. The reported figure also comprised a foreign currency headwind of 0.6%.
The company's worldwide genomics business performed well in the quarter, driven by volume increases in international beef markets and companion animal testing.
Margin Details
Neogen’s fiscal fourth-quarter gross profit increased 89.5% year over year to $123.2 million. The gross margin expanded 454 basis points (bps) to 50.9%. The increase was led by incremental revenues from the former 3M Food Safety Division.
Sales and marketing expenses rose 100.6% to $42.9 million, whereas administrative expenses rose 129% from the prior-year quarter to $50 million. R&D expenses were $7.1 million, up 84.1% year over year. Operating costs totaled $99.8 million, up 112.4% from the last year’s quarter.
The company reported an operating profit of $23.4 million for the quarter under review. The adjusted operating margin contracted 318 bps to 9.7%.
Cash Position
Neogen exited fiscal 2023 with cash and investments of $245.6 million, down from $381.1 million at the end of the fiscal fourth quarter of 2022. At the fiscal fourth quarter’s end, the company’s non-current liabilities included outstanding debt of $900 million, unchanged from the fiscal third-quarter level.
Full-Year Guidance
Neogen provided its outlook for fiscal 2024.
The company anticipates revenues for the full year in the band of $955 million-$985 million. The Zacks Consensus Estimate for the same is currently pegged at $946.7 million.
NEOG expects capital expenditures to be approximately $130 million, which includes approximately $100 million related specifically to the integration of the former 3M Food Safety Division.
Our Take
Neogen exited the fourth quarter of fiscal 2023 with better-than-expected earnings and revenues. Core growth in both the segments buoys optimism despite the challenges of lower volumes and inventory levels in end markets. NEOG’s integration activities are progressing well, with three of the four key product lines of the former 3M business expected to be fully integrated into its facilities by the end of the fiscal third quarter.
The company made good progress with the transition manufacturing arrangement for the flagship Petrifilm product line, simultaneously emphasizing continued innovation to capitalize on the leading market position. Further, NEOG expanded its Reveal portfolio with the addition of quantitative assays for the detection of histamine in fish and dry animal proteins, as well as for DON and Aflatoxin in grains and grain byproducts. All these developments bode well for the stock.
Meanwhile, escalated operating costs are concerning. Neogen’s larger Food Safety product categories — Natural Toxins and Allergens — reported slight core revenue declines due to the discontinuation of the drug testing kit product line for international dairy markets.
Zacks Rank and Other Key Picks
Neogen currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of #2, reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Neogen Corporation (NEOG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Neogen Corporation (NEOG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Neogen Corporation (NEOG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Neogen Corporation (NEOG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30859.0 | 2023-07-27 00:00:00 UTC | Boston Scientific (BSX) Q2 Earnings Beat, Margins Improve | ABT | https://www.nasdaq.com/articles/boston-scientific-bsx-q2-earnings-beat-margins-improve | nan | nan | Boston Scientific Corporation BSX posted adjusted earnings per share (EPS) of 53 cents for the second quarter of 2023, up 20.5% from the year-ago figure. The figure also exceeded the Zacks Consensus Estimate by 8.2%. The figure exceeded the company’s adjusted earnings per share guidance range of 48-50 cents.
The quarter’s adjustments included certain amortization expenses, acquisition/divestitures-related net charges, certain asset impairment charges and European Union Medical Device Regulation implementation costs, among others.
Reported EPS for the second quarter was 18 cents, reflecting an improvement of a penny from the year-ago quarter figure.
Second-quarter revenues of $3.59 billion improved 11% year over year on a reported basis and 12% on an operational basis (at a constant exchange rate or CER). Revenues grew 11.6% on an organic basis (adjusted for foreign currency fluctuations and certain recent acquisitions and divestments). The top line exceeded the Zacks Consensus Estimate by 2.6%. The quarter’s top-line performance also exceeded the company’s projection of 6.5-8.5% growth on a reported basis (an increase of 7-9% organically).
Q2 Revenues in Detail
In the second quarter, revenues rose 9.1% in the United States on a reported basis (same operationally). This compares to our model estimate of 4.7% growth year over year on a reported and operational basis.
Revenues were up 9.6% in the Europe, Middle East and Africa (EMEA) region (up 9.3%) and up 18% in the Asia Pacific zone (up 24.5%). The revenue growth projection for EMEA was 10.2% on a reported basis (a projected improvement of 14.7% operationally) per our model. The same for APAC was 13.6% on a reported basis and 17.9% operationally.
Revenues increased 16.9% in Latin America and Canada (up 17.4%). For Latin America and Canada, our estimate was pegged at 8.4% year-over-year reported growth for Q2 (an improvement of 9% operationally).
Reported revenue growth reported revenue growth in emerging markets was 18.8% (up 24.2% operationally).
Boston Scientific Corporation Price, Consensus and EPS Surprise
Boston Scientific Corporation price-consensus-eps-surprise-chart | Boston Scientific Corporation Quote
Segmental Analysis
Boston Scientific recently reorganized its operational structure and aggregated its core businesses, each of which generates revenues from the sale of Medical Devices, into two reportable segments, MedSurg and Cardiovascular.
The company generates maximum revenues from Cardiovascular. Sales from its sub-segments, Cardiology and Peripheral Interventions, were $1.70 billion (up 13.4% year over year organically) and $535 million (up 13.5%), respectively, in the second quarter.
Going by our model, second-quarter Cardiology revenues were estimated to be $1.61 billion, implying 20.5% organic growth on a year-over-year basis. Our estimate for Peripheral Interventions revenues was pegged at $546.7 million, implying 17.3% organic growth.
Within MedSurg, Endoscopy generated revenues of $631 million, up 11.6% organically. Our model predicted revenues of $610.1 million, suggesting 10.4% organic growth.
Urology revenues were $485 million, reflecting organic growth of 8.4%. Our model estimated revenues to be $465.2 million, implying 4.5% organic growth.
Neuromodulation within MedSurg reported $244 million in revenues, reflecting a 2.8% rise organically year over year. Our model estimate was $253 million, indicating 6.9% organic growth.
Margins
Gross margin in the second quarter expanded 177 basis points (bps) year over year to 70.6%. There was a 13.8% rise in gross profit to $2.54 billion.
Selling, general and administrative expenses rose 16.2% to $1.35 billion. Research and development expenses rose 7.2% to $359 million. Royalty expenses of $12 million improved 9.1% year over year. Adjusted operating margin expanded 42 bps to 22.7% in the reported quarter.
2023 Guidance
Boston Scientific updated its full-year guidance and provided third-quarter 2023 projections.
Full-year net sales growth is expected in the range of 10.5-11.5% on a reported basis (earlier estimate was 8.5-10.5% growth). Net sales growth is expected to be in the range of 10-11% on an organic basis (8-10%). The Zacks Consensus Estimate is currently pegged at $13.91 billion, indicating a 9.7% rise from the 2022 reported figure. Full-year adjusted EPS is expected in the range of $1.96 to $2.00 ($1.90 to $1.96). The Zacks Consensus Estimate is currently pegged at $1.95, below the guided range.
For the third quarter of 2023, revenue growth is projected in the range of approximately 8.5-10.5% on a reported basis (an increase of 7-9% organically). Adjusted earnings are expected in the range of 46-48 cents per share. The current Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at 48 cents and $3.43 billion, respectively.
Our Take
Boston Scientific second-quarter 2023 adjusted earnings and revenues exceeded the respective Zacks Consensus Estimate by decent margins. The company registered a strong year-over-year improvement in organic sales, indicating a solid rebound in the legacy business even amid several macroeconomic issues.
Organic and operational revenues at its respective core business segments and geographies were up in the reported quarter. However, mounting operating expenses put pressure on the company’s bottom line.
The increased 2023 guidance increases investors’ confidence, indicating that the company is well-poised to handle the industry-wise trend of currency headwinds and global inflationary pressure.
Zacks Rank and Key Picks
Boston Scientific currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30860.0 | 2023-07-27 00:00:00 UTC | LabCorp (LH) Q2 Earnings Miss Estimates, Margins Decline | ABT | https://www.nasdaq.com/articles/labcorp-lh-q2-earnings-miss-estimates-margins-decline | nan | nan | Laboratory Corporation of America Holdings LH or LabCorp reported second-quarter 2023 adjusted earnings per share (EPS) of $3.42, down 15.3% from the year-ago quarter’s figure. The adjusted figure excludes the impact of certain amortization expenses, restructuring charges, among others. The bottom line also missed the Zacks Consensus Estimate by 1.4%.
On a GAAP basis, net earnings in the second quarter were $1.74 per share compared with the year-ago figure of $2.89, reflecting 39.8% decline.
Revenues
Revenues in the quarter under review rose 3.8% year over year to $3.03 billion. The metric surpassed the Zacks Consensus Estimate by 1.6%.
The uptick in revenues can be attributed to a 2% rise in organic revenues, acquisitions, net of divestitures, of 1.6% and foreign currency translation of 0.2%. The rise in organic revenues was driven by 9.8% organic Base Business, partially offset by a (7.8%) decline in COVID-19 PCR and antibody testing (COVID-19 Testing).
Segments in Detail
The company currently operates under two segments — Diagnostics Laboratories and Biopharma Laboratory Services (comprised of its Central Laboratories and Early Development Research Laboratories).
For the second quarter, LabCorp Diagnostics reported revenues of $2.34 billion, reflecting a 3.8% rise year over year. On an organic basis, revenues were up 1.8%, partially offset by acquisitions growth of 2.2%. This increase in organic revenues resulted from a 11.9% rise in Base business, partially offset by a (10.1%) fall in COVID-19 Testing. This figure compares with our second quarter’s Diagnostics’ model’s projection of $2.26 billion.
The company’s Total volume (measured by requisitions) increased by 1.4% as acquisition volume contributed 2.5%, while organic volume declined (1.1%). Organic volume was impacted by a (6.1%) fall in COVID-19 testing, partially offset by a 5.1% increase in the Base business.
Laboratory Corporation of America Holdings Price, Consensus and EPS Surprise
Laboratory Corporation of America Holdings price-consensus-eps-surprise-chart | Laboratory Corporation of America Holdings Quote
Biopharma Laboratory Services revenues rose 3.1% to $699 million in the second quarter. The increase was primarily due to organic growth of 2.1% and foreign currency translation of 1.5%, partially offset by divestitures of (0.4%).
Margins
Gross margin contracted 448 basis points (bps) to 27.8% in the second quarter. Adjusted operating income declined 34% year over year to $336.4 million. Adjusted operating margin contracted 636 bps from the year-ago quarter to 11.1%.
Cash Position
LabCorp exited the second quarter of 2023 with cash and cash equivalents of $1.93 billion compared with $393.6 million at the end of first-quarter 2023.
Cumulative cash flow from operating activities at the end of the second quarter was $351.4 million, significantly down from $121.2 million at the end of first quarter 2023. Cumulative free cash flow at the end of the quarter under review was $177.4 million, down from $408.2 million a year ago.
2023 View
The company updated its 2023 guidance.
Total LabCorp Enterprise revenues (net of intersegment transaction eliminations, including Drug Development COVID-19 testing revenues) are expected to grow in the range of 1.5-3% (previous guidance was 1.5-4%). Base business growth is expected in the range of 11.3-12.6% (previous guidance was 9.5-11%). COVID-19 testing revenues are expected to decline in the range of 89-85% (previous guidance was 80-90%).
Total Diagnostics revenues are expected to grow in the range of down 0.5% to up 1.5% compared with the earlier guidance of down 0.5% to up 1%. Total Biopharma Laboratory Services revenues are now expected to rise in the range of 3-4.5% in 2023 (down from the earlier guidance of 3.5-5.5%).
The Zacks Consensus Estimate for full-year revenues is pegged at $12.00 billion.
The company expects full-year adjusted EPS in the band of $13-$14 (previous range was 16.25-17.75%). The Zacks Consensus Estimate for the metric is pegged at $13.96.
The company projects 2023 free cash flow figure in the range of $0.8-$1.0 billion.
Our Take
LabCorp ended the second quarter of 2023 on a mixed note with better-than-expected revenues but earnings lagging. The company’s revenues increased year-over-year led by rise in base business. In the second quarter, LabCorp continued to expand its relationship with hospitals, regional healthcare systems and local labs. The company completed its planned spin-off of the Clinical Development business.
On a year-over-year basis, Q2 adjusted EPS declined significantly. Revenues were impacted by a decline in COVID-19 testing, The significant contraction of both margins is discouraging.
Zacks Rank and Key Picks
LabCorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9% You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30861.0 | 2023-07-27 00:00:00 UTC | Edwards Lifesciences (EW) Q2 Earnings Top Estimates, View Up | ABT | https://www.nasdaq.com/articles/edwards-lifesciences-ew-q2-earnings-top-estimates-view-up | nan | nan | Edwards Lifesciences Corporation EW delivered adjusted earnings per share (EPS) of 66 cents in second-quarter 2023, beating the Zacks Consensus Estimate by 1.5%. The figure also increased 4.8% year over year.
GAAP EPS was 50 cents in the quarter, down 23.1% year over year.
Sales Details
Second-quarter net sales were $1.53 billion, up 11.4% year over year on a reported basis. The metric topped the Zacks Consensus Estimate by 1.7%.
Segmental Details
In the second quarter, global sales in the Transcatheter Aortic Valve Replacement (TAVR) product group amounted to $991.6 million, up 9.3% year over year. On an underlying basis, growth was 9.8%. In the United States, Edwards' TAVR sales were aided by improved hospital staffing levels and the continued successful launch of SAPIEN 3 Ultra RESILIA. This figure compares with our second quarter’s TAVR model’s projection of $960.6 million.
Transcatheter Mitral and Tricuspid Therapies (TMTT) sales totaled $47.6 million, up 71.4% from the prior-year quarter’s figure on a reported basis. On an underlying basis, the upside was 69.2%. The uptick is driven by overall transcatheter edge-to-edge repair procedure growth and the ongoing launch and growing adoption of the PASCAL Precision system in Europe and the United States. This figure compares with our second quarter’s TMTT model’s projection of $43.2 million.
Surgical Structural Heart sales in the quarter totaled $256.3 million, up 12.2% from the year-ago quarter’s levels on a reported basis and 13.3% on an underlying basis. Growth was driven by the adoption of Edwards' premium products across all regions. This figure compares with our second quarter’s Surgical Structural Heart model’s projection of $230.9 million.
Critical Care sales totaled $234.7 million in the second quarter, up 11.4% from the year-ago quarter’s levels on a reported basis and up 12.8% on an underlying basis. Sales growth was led by the Smart Recovery technology portfolio and strong adoption of the Acumen IQ sensor. This figure compares with our second quarter’s Critical Care model’s projection of $228 million.
Margins
In the second quarter, gross profit was $1.19 billion, up 7.5%. The gross margin contracted 281 basis points (bps) to 77.6%.
The company-provided adjusted gross margin was 77.7%, a 280 basis-point (bps) contraction year over year. This year-over-year reduction was due to a less favorable impact from foreign exchange.
Edwards Lifesciences Corporation Price, Consensus and EPS Surprise
Edwards Lifesciences Corporation price-consensus-eps-surprise-chart | Edwards Lifesciences Corporation Quote
Selling, general and administrative expenses rose 14.6% year over year to $468.7 million. Research and development expenditures were $270.3 million, down 7.8% year over year.
During the reported quarter, operating income rose 0.8% year over year to $448.2 million. The operating margin contracted 308 bps to 29.3%.
Cash Position
Edwards Lifesciences exited second-quarter 2023 with cash and cash equivalents and short-term investments of $1.04 billion compared with $1.25 billion recorded at the end of first-quarter 2023. Long-term debt was $596.7 million at the end of second-quarter 2023 compared with $596.5 million at the end of first-quarter 2023.
Guidance
The company raised its guidance for full-year 2023.
The company expects full-year 2023 adjusted EPS to grow in the range of $2.50-$2.60 (compared with the previous guidance of $2.48-$2.60). The Zacks Consensus Estimate for the metric is pegged at $2.55.
Full-year 2023 sales are expected in the high range of $5.90-$6.10 billion (compared with the previous guidance of $5.60-$6.00 billion). The Zacks Consensus Estimate for the same is pegged at $5.96 billion.
For the third quarter of 2023, Edwards Lifesciences projects total sales in the range of $1.44-$1.52 billion. The Zacks Consensus Estimate for third-quarter revenues is pegged at 1.50 billion.
The adjusted EPS is expected in the band of 55-61 cents. The Zacks Consensus Estimate for third-quarter earnings is pegged at 65 cents.
Our Take
Edwards Lifesciences exited the second quarter of 2023 on a bullish note with better-than-expected earnings and revenues. The company also registered year-over-year growth on both fronts. The company’s TMTT segment was driven by overall transcatheter edge-to-edge repair procedure growth as well as the ongoing launch and growing adoption of the PASCAL Precision system in Europe and the United States. Further, growth within Surgical Structural Heart was lifted by the increased adoption of Edwards’ premium products across all regions. Critical Care also registered growth in the reported quarter led by the Smart Recovery technology portfolio and strong adoption of the Acumen IQ sensor. The company raised its full-year 2023 guidance, which is encouraging too.
However, the contraction of both margins is discouraging. The choppy market conditions due to the persistent foreign exchange impact and stiff competition within the medical device industry is a concern.
Zacks Rank and Other Key Picks
Edwards Lifesciences currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9% You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30862.0 | 2023-07-27 00:00:00 UTC | Baxter (BAX) Beats on Q2 Earnings, Revises 2023 EPS Guidance | ABT | https://www.nasdaq.com/articles/baxter-bax-beats-on-q2-earnings-revises-2023-eps-guidance | nan | nan | Baxter International Inc. BAX reported second-quarter 2023 adjusted earnings per share (EPS) of 66 cents, which beat the Zacks Consensus Estimate of 59 cents by 11.9%. However, the bottom line declined 24% from the year-ago quarter’s level.
On a GAAP basis, the loss was 28 cents per share against earnings of 50 cents in the prior-year quarter, reflecting higher cost of sales.
Baxter reported BioPharma Solutions (BPS) business as discontinued business. In May, it had signed an agreement to divest the business for $4.25 billion. The divesture is expected to close in the second half of 2023.
Adjusted EPS from continuing operations during the second quarter was 55 cents, down 24.7% year over year.
The company’s shares have rallied 61.3% year to date compared with the industry’s growth of 15.5%. The broader S&P 500 Index has moved up 20.2% in the same period.
Image Source: Zacks Investment Research
Revenue Details
Revenues from continued operation totaled $3.71 billion, up 3% on a reported basis and 4% organically. Revenues from discontinued operation (BPS business) amounted to $142 million. The Zacks Consensus Estimate for total sales is pegged at $3.79 billion.
Geographical Details
Baxter reported operating results for continuing operations in its three geographic segments — Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific).
In the Americas, revenues from continuing operations totaled $1.56 billion, up 5% on year-over-year as well as cc basis.
In EMEA, revenues amounted to $762 million, up 3% year over year and up 9% at cc.
In APAC, revenues of $638 million declined 1% year over year but increased 4% at cc.
Segmental Details
Following the Hillrom buyout (in 2021), Baxter added three new product categories — Patient Support Systems, Front Line Care and Global Surgical Solutions — to its portfolio. During the reported quarter, the company recorded $743 million in sales from Hilrom’s businesses, up 4% on a year-over-year basis as well as at cc.
Patient Support Systems reported revenues of $359 million, while Front Line Care and Global Surgical Solutions recorded revenues of $307 million and $77 million, respectively. While sales at Patient Support Systems declined year over year, the same at the other two segments improved.
Renal Care
This segment reported revenues of $936 million, up 1% year over year and 2% at cc.
Medication Delivery
Revenues at the segment totaled $761 million, up 7% on a year-over-year basis as well as at cc.
Pharmaceuticals
Revenues at the segment amounted to $550 million, up 4% year over year and 6% at cc.
Clinical Nutrition
Revenues at the segment totaled $243 million, up 6% on a year-over-year basis and 7% at cc.
Advanced Surgery
Revenues at the segment totaled $272 million, up 3% year over year and 4% at cc.
Acute Therapies
This segment reported revenues of $180 million, up 4% from the prior-year quarter’s level and 6% at cc.
Other
Revenues in the segment amounted to $22 million, down 50% on a year-over-year basis and at cc.
Margin Analysis
Baxter reported an adjusted gross profit of $1.5 billion for the second quarter, down 0.8% year over year. As a percentage of revenues, the gross margin declined 160 basis points (bps) to 40.4% in the second quarter.
Selling, general and administrative expenses amounted to $964 million, down 0.6% from the year-ago quarter’s figure. Research and development expenses totaled $165 million, up 11.5% on a year-over-year basis.
Adjusted operating income from continuing operations was $343 million, down 27.5% year over year. As a percentage of revenues, the operating margin contracted 390 bps to 13.8%. Adjusted income from discontinued operations, net of tax, was $55 million during the reported quarter.
Guidance
For third-quarter 2023, Baxter anticipates sales from continuing operations to grow approximately 2% on a reported basis and 1% at cc. The Zacks Consensus Estimate for the same is pegged at $3.87 billion, implying growth of 2.6% reportedly.
Adjusted EPS from continuing operations is expected between 65 cents and 67 cents for the third quarter. Adjusted EPS, including discontinued operations, is anticipated in the range of 78-80 cents. The Zacks Consensus Estimate for the same is pegged at 79 cents.
For full-year 2023, Baxter provides two scenarios based on completion of divestment of BPS business.
If the divestment gets completed by September-end, sales growth for continuing operations and in aggregate (including discontinued operations) would be approximately flat to 1% on a reported basis and approximately 1% at cc. Adjusted EPS, including discontinued operations, is expected in the band of $2.87-$2.95, while the same from continuing operations is anticipated in the range of $2.54-$2.62.
The company expects sales growth of 1-2% on a reported basis and approximately 2% at cc, if the BPS business remains part of Baxter till the end of 2023. Adjusted EPS, including discontinued operations, is expected in the range of $2.92-$3.00, while the same from continuing operations is expected in the band of $2.49-$2.57.
Summing Up
Baxter ended second-quarter 2022 with improvement in both earnings and revenues. Sales across all product categories were strong except for decline in Patient Support Systems, led by lower rental revenues. Robust growth rates across all geographies buoy optimism. However, declining gross and operating margins are concerning.
The company expects the demand for its medically essential products to continue amid a stabilizing macroeconomic climate and healthcare marketplace. It stated that the ongoing transformational actions, announced earlier this year, will likely boost its performance going forward.
The transformational actions, which include realigning its businesses and operations into four vertically integrated global business segments, are likely to be completed by July 2024. Baxter is also progressing with the proposed spin-off of Kidney Care segment — comprising Renal Care and Acute Therapies product categories — into an independent, publicly traded company. This is also a part of BAX’s transformational actions.
Baxter International Inc. Price, Consensus and EPS Surprise
Baxter International Inc. price-consensus-eps-surprise-chart | Baxter International Inc. Quote
Zacks Rank and Stocks to Consider
Currently, Baxter carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy) at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Baxter International Inc. (BAX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Baxter International Inc. (BAX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Baxter International Inc. (BAX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Baxter International Inc. (BAX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30863.0 | 2023-07-27 00:00:00 UTC | Align Technology (ALGN) Q2 Earnings Beat, Gross Margin Up | ABT | https://www.nasdaq.com/articles/align-technology-algn-q2-earnings-beat-gross-margin-up | nan | nan | Align Technology, Inc. (ALGN) delivered second-quarter 2023 adjusted earnings per share (EPS) of $2.22, up 3.3% from the year-ago earnings. The EPS exceeded the Zacks Consensus Estimate by 9.9% in the second quarter.
GAAP EPS for the quarter was $1.46, reflecting a 1.4% increase year over year.
Revenues
Revenues increased 3.4% year over year to $1002.2 million in the quarter and also beat the Zacks Consensus Estimate by 1.7%. Revenues were impacted by the unfavorable foreign exchange of approximately $19.4 million year over year.
At the constant exchange rate or CER, total revenues in the second quarter were up 1.9% year over year.
Segments in Detail
The company has two reportable segments —Clear Aligner and Imaging Systems and CAD/CAM Services (“Systems and Services”)
Align Technology, Inc. Price, Consensus and EPS Surprise
Align Technology, Inc. price-consensus-eps-surprise-chart | Align Technology, Inc. Quote
Revenues in the Clear Aligner segment were up 4.3% year over year to $832.7 million. This figure compares with our model’s segmental projection of $818.5 million for the second quarter.
The growth was driven by higher volumes, increased Average Selling Prices (“ASP”) as well as higher non-case revenues. However, revenues were unfavorably impacted by a foreign exchange headwind of approximately $16.3 million (or 1.9%) year over year. Total Clear Aligner shipments during the quarter amounted to 604,445, up 0.9% year over year.
Revenues from Imaging Systems & CAD/CAM Services were down 1.0% to $169.5 million in the quarter. Our model had projected the segment’s revenues for the second quarter to be $164.9 million.
Revenues witnessed an unfavorable currency impact of 1.8% year over year.
Margins
The gross profit in the second quarter was $713.6 million, reflecting an increase of 3.8% year over year. The gross margin in the quarter under review expanded 29 basis points (bps) year over year to 71.2% despite a 2.3% increase in the cost of net revenues.
During the quarter, Align Technology witnessed a 6.3% increase in SG&A expenses to $453.2 million and a 21.3% rise in R&D expenses to $88.5 million.
The operating income in the quarter under review was $171.9 million, highlighting a decline of 8.6%. The operating margin contracted 225 bps to 17.2%.
Financial Details
Align Technology exited the second quarter of 2023 with cash and cash equivalents of $952 million compared with the $942.1 million recorded at the end of 2022.
The cumulative net cash provided by operating activities at the end of the second quarter was $451.7 million compared with $157.5 million at the end of Jun 30, 2022.
Currently, $1 billion is available for repurchases under ALGN’s $1 billion Stock Repurchase Program, which was authorized in the first quarter of 2023 to succeed the 2021 $1 billion program. Further, the company’s management noted the completion of the $75 million equity investment in Heartland Dental, a multidisciplinary Dental Service Organization with GDP and ortho practices across the United States.
Full-Year Guidance
Align Technology provided an updated outlook for 2023.
For the full year, ALGN anticipates revenues in the range of $3.97 billion-$3.99 billion, implying a 12% improvement from 2022 at the midpoint. The Zacks Consensus Estimate for Align Technology’s 2023 revenues is pegged at $3.89 billion.
The company expects to report a 2023 GAAP operating margin of slightly more than 17% (previously 16%) and an adjusted operating margin of slightly higher than 21% (earlier 20%).
For 2023, Align Technology expects investments in capital expenditures to be approximately $200 million (earlier projected to exceed the same). Capital expenditures are primarily related to building construction and improvements and additional manufacturing capacity to support Align Technology’s international expansion.
For the third quarter of 2023, ALGN anticipates revenues in the range of $990 million-$1,010 million. The Zacks Consensus Estimate for the same is pegged at $978.1 million.
The company anticipates its adjusted operating margin to be slightly up on a sequential basis as it continues to prioritize investments in R&D and go-to-market activities to drive growth.
Our Take
Align Technology exited the second quarter of 2023 with better-than-expected earnings and revenues. The performance reflected improving trends across regions, and strength in teen and younger patient volumes, driven by increased Invisalign submitters and higher utilization and continued growth from Invisalign First. The strong uptake of the Invisalign Comprehensive 3 and 3 product, which was launched in the first quarter, looks encouraging.
Further, a year-over-year increase in the quarter’s non-case revenues reflected continued growth from the Vivera Retainers and Invisalign Doctor Subscription Program or DSP. In the second quarter, the company expanded the DSP to Spain and Nordic countries, while launches in France and the United Kingdom are expected in the second half of this year.
Meanwhile, the contraction in the adjusted operating margin is worrisome. Compared to the prior-year period, the Systems and Services business was impacted by lower scanner volumes and unfavorable ASPs. Headwinds related to foreign exchange persisted in the quarter.
Zacks Rank and Key Picks
Align Technology currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30864.0 | 2023-07-27 00:00:00 UTC | HCA Healthcare raises 2023 profit view as surgical procedure volumes rebound | ABT | https://www.nasdaq.com/articles/hca-healthcare-raises-2023-profit-view-as-surgical-procedure-volumes-rebound | nan | nan | Adds background in paragraph 2-3
July 27 (Reuters) - Hospital operator HCA Healthcare Inc HCA.N on Thursday raised its annual profit forecast, betting on a recovery in surgical procedure volumes.
The volumes of medical procedures are trending upwards after the U.S. government ended the public health emergency status for COVID-19 in May. Patients, particularly older adults, have been returning to hospitals for procedures such as hip and knee replacements.
The recovery in demand for surgical procedures has also boosted margins for others including medical device makers such as Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which topped second-quarter profit estimates last week.
HCA Healthcare said it expects 2023 profit in the range of $17.70 to $18.90 per share, compared with its previous forecast of $17.25 to $18.55.
(Reporting by Khushi Mandowara and Vaibhav Sadhamta in Bengaluru; Editing by Shinjini Ganguli)
((Khushi.Mandowara@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The recovery in demand for surgical procedures has also boosted margins for others including medical device makers such as Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which topped second-quarter profit estimates last week. Adds background in paragraph 2-3 July 27 (Reuters) - Hospital operator HCA Healthcare Inc HCA.N on Thursday raised its annual profit forecast, betting on a recovery in surgical procedure volumes. The volumes of medical procedures are trending upwards after the U.S. government ended the public health emergency status for COVID-19 in May. | The recovery in demand for surgical procedures has also boosted margins for others including medical device makers such as Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which topped second-quarter profit estimates last week. Adds background in paragraph 2-3 July 27 (Reuters) - Hospital operator HCA Healthcare Inc HCA.N on Thursday raised its annual profit forecast, betting on a recovery in surgical procedure volumes. The volumes of medical procedures are trending upwards after the U.S. government ended the public health emergency status for COVID-19 in May. | The recovery in demand for surgical procedures has also boosted margins for others including medical device makers such as Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which topped second-quarter profit estimates last week. Adds background in paragraph 2-3 July 27 (Reuters) - Hospital operator HCA Healthcare Inc HCA.N on Thursday raised its annual profit forecast, betting on a recovery in surgical procedure volumes. (Reporting by Khushi Mandowara and Vaibhav Sadhamta in Bengaluru; Editing by Shinjini Ganguli) ((Khushi.Mandowara@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The recovery in demand for surgical procedures has also boosted margins for others including medical device makers such as Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which topped second-quarter profit estimates last week. Adds background in paragraph 2-3 July 27 (Reuters) - Hospital operator HCA Healthcare Inc HCA.N on Thursday raised its annual profit forecast, betting on a recovery in surgical procedure volumes. The volumes of medical procedures are trending upwards after the U.S. government ended the public health emergency status for COVID-19 in May. |
30865.0 | 2023-07-27 00:00:00 UTC | CONMED (CNMD) Beats on Q2 Earnings, Ups '23 EPS View | ABT | https://www.nasdaq.com/articles/conmed-cnmd-beats-on-q2-earnings-ups-23-eps-view | nan | nan | CONMED Corporation CNMD delivered second-quarter 2023 adjusted earnings per share (EPS) of 83 cents, which beat the Zacks Consensus Estimate of 79 cents by 5.1%. The bottom line improved 9.2% from the year-ago quarter’s level.
GAAP EPS for the quarter was 43 cents against a reported loss of $5.65 per share in the year-ago period. The significantly higher loss in the year-ago period was due to the presence of $112 million debt-related expenses, primarily due to conversion premium on the repurchase and extinguishment of certain convertible debts.
The company’s shares have risen 38.4% year to date compared with the industry’s growth of 16.3%. The broader S&P 500 Index has increased 6.6% in the same time frame.
Image Source: Zacks Investment Research
Revenues in Detail
CONMED’s revenues totaled $317.7 million, up 14.6% year over year. The top line beat the Zacks Consensus Estimate by 3.9%. At constant exchange rate (CER), revenues increased 16.6%. Additional sales from newly-acquired businesses contributed approximately 400 basis points of growth.
The first-quarter sales were adversely impacted due to the implementation of a warehouse management software system during the fourth quarter of 2022. However, during the second quarter, the company’s top line is likely to have recovered from the disruption. We expect revenue growth to be steady in the second half of 2023.
Segmental Details
Revenues in the Orthopedic Surgery segment totaled $140.8 million, up 17.1% from the year-ago quarter’s level on a reported basis. At CER, revenues increased 19.8%.
The top line improved 29.4% on a reported basis on the domestic front. It also increased 11% (up 14.8% at CER) from the prior-year quarter’s level on the international front.
Revenues in the General Surgery segment amounted to $176.9 million, up 12.6% year over year on a reported basis and 14.1% at CER. Domestically, the figure increased 12.5% year over year. International sales gained 12.9% on a reported basis (up 17.9% at CER).
Sales by Geography
Sales in the United States totaled $174.7 million, up 17.1% year over year. International sales were $143 million, up 11.7% year over year on a reported basis and 16% at CER.
Margins
CONMED’s gross profit improved 12.5% to $170.7 million. However, the gross margin declined 110 basis points to 53.7%.
Selling & administrative expenses increased 12% to $129.7 million. Research and development expenses rose 18.1% year over year to $13.6 million.
The company recorded an operating income of $27.4 million compared with $24.6 million in the prior-year quarter.
2023 Guidance
Based on strong second-quarter results, CONMED announced updated guidance for earnings and revenues in 2023. The company now expects revenues between $1.23 billion and $1.26 billion for full-year 2023, implying growth of 21.8-24.8% over 2022.
Previously, it expected revenues between $1.205 billion and $1.250 billion. The Zacks Consensus Estimate for the same is currently pegged at $1.23 billion.
Adjusted EPS is now expected in the range of $3.40-$3.55, up from the previous projection of $3.30-$3.50. The Zacks Consensus Estimate for the same is currently pegged at $3.41. The current EPS guidance indicates an improvement of 5.9-10.6% year over year.
CNMD continues to expect foreign exchange to have an unfavorable impact on its top-line growthby 150-200 basis points in 2023. Currency rates are expected to negatively impact EPS by 20-25 cents.
Our Take
CONMED exited the second quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark. The company’s revenues recovered from the shipping delays. It had reduced the backlog due to the aforementioned disruption, to normal operating levels during the first quarter 2023. Moreover, a strong order book is likely to drive revenue growth for the rest of the year.
However, rising cost of goods and higher operating expenses completely offset strong top-line growth, which led to a decline in earnings. Although CONMED raised its bottom-line guidance, the metric is still expected to be under pressure going forward.
CONMED Corporation Price, Consensus and EPS Surprise
CONMED Corporation price-consensus-eps-surprise-chart | CONMED Corporation Quote
Zacks Rank and Stocks to Consider
Currently, CNMD carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy) at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report CONMED Corporation (CNMD) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report CONMED Corporation (CNMD) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report CONMED Corporation (CNMD) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report CONMED Corporation (CNMD) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30866.0 | 2023-07-26 00:00:00 UTC | Edwards Lifesciences shares fall as slow heart-valve growth dulls forecast raise | ABT | https://www.nasdaq.com/articles/edwards-lifesciences-shares-fall-as-slow-heart-valve-growth-dulls-forecast-raise | nan | nan | July 26 (Reuters) - Edwards Lifesciences Corp EW.N on Wednesday slightly raised its annual forecasts for sales and profit, but slower-than-expected revenue growth in the company's artificial heart valves dragged its shares down 6% after the bell.
Easing staffing issues at U.S. hospitals have boosted non-urgent procedures delayed by the pandemic, but heart surgeries have not recovered as fast as some others, hurting medical device makers banking on a strong rebound.
That is partly because some surgeries require more time for initial diagnosis to completion, which takes four to six months, RBC analyst Shagun Singh told Reuters.
Sales of the company's Transcatheter aortic valve replacement (TAVR) device, which helps in a type of heart surgery, rose 9% to $992 million in the second quarter. However, the underlying growth rate of 9.8% was lower than the 10.8% increase in the first quarter.
While U.S. growth was roughly consistent with the first quarter, sales outside the country were dragged down by flattish sales in Japan, said Evercore ISI analyst Vijay Kumar.
The company said in a conference call that sales in Japan were still under pressure from lower-than-expected market growth and competitive trialing in the first half of this year.
Edwards lifted its 2023 sales forecast to between $5.9 billion and $6.1 billion, from $5.6 billion to $6.0 billion estimated earlier. The new mid-point is slightly higher than analysts' estimates of $5.96 billion, according to Refinitiv.
The company tightened its adjusted per-share profit forecast range to between $2.50 and $2.60, compared with $2.48 to $2.60 earlier. Analysts are estimating $2.55.
It expects 2023 sales for its TAVR devices to be between $3.85 billion and $4 billion, compared with its prior forecast of $3.8 billion to $4 billion. That was in line with estimates of $3.9 billion.
In the quarter ended June 30, Edwards' revenue rose 11% to $1.53 billion, above estimates of $1.50 billion.
Excluding items, it made a profit of 66 cents per share, compared with estimates of 65 cents.
(Reporting by Sriparna Roy in Bengaluru; Editing by Devika Syamnath)
((Sriparna.Roy@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | July 26 (Reuters) - Edwards Lifesciences Corp EW.N on Wednesday slightly raised its annual forecasts for sales and profit, but slower-than-expected revenue growth in the company's artificial heart valves dragged its shares down 6% after the bell. Easing staffing issues at U.S. hospitals have boosted non-urgent procedures delayed by the pandemic, but heart surgeries have not recovered as fast as some others, hurting medical device makers banking on a strong rebound. That is partly because some surgeries require more time for initial diagnosis to completion, which takes four to six months, RBC analyst Shagun Singh told Reuters. | July 26 (Reuters) - Edwards Lifesciences Corp EW.N on Wednesday slightly raised its annual forecasts for sales and profit, but slower-than-expected revenue growth in the company's artificial heart valves dragged its shares down 6% after the bell. Edwards lifted its 2023 sales forecast to between $5.9 billion and $6.1 billion, from $5.6 billion to $6.0 billion estimated earlier. In the quarter ended June 30, Edwards' revenue rose 11% to $1.53 billion, above estimates of $1.50 billion. | Edwards lifted its 2023 sales forecast to between $5.9 billion and $6.1 billion, from $5.6 billion to $6.0 billion estimated earlier. It expects 2023 sales for its TAVR devices to be between $3.85 billion and $4 billion, compared with its prior forecast of $3.8 billion to $4 billion. In the quarter ended June 30, Edwards' revenue rose 11% to $1.53 billion, above estimates of $1.50 billion. | The company tightened its adjusted per-share profit forecast range to between $2.50 and $2.60, compared with $2.48 to $2.60 earlier. Analysts are estimating $2.55. In the quarter ended June 30, Edwards' revenue rose 11% to $1.53 billion, above estimates of $1.50 billion. |
30867.0 | 2023-07-26 00:00:00 UTC | Merit Medical (MMSI) Q2 Earnings & Revenues Beat Estimates | ABT | https://www.nasdaq.com/articles/merit-medical-mmsi-q2-earnings-revenues-beat-estimates | nan | nan | Merit Medical Systems, Inc. MMSI delivered adjusted earnings per share (EPS) of 81 cents in the second quarter of 2023, up by 10.9% year over year. The figure also surpassed the Zacks Consensus Estimate by 8%.
The adjustments include expenses related to the amortization of intangibles, and corporate transformation and restructuring, among others.
GAAP EPS for the quarter was 35 cents, up by 29.6% year over year.
Revenues in Detail
Merit Medical registered revenues of $320.1 million in the second quarter, up 8.5% year over year. The figure surpassed the Zacks Consensus Estimate by 3.2%.
Per management, the overall top line was driven by 9% growth in U.S. sales and 8% growth in international sales. Strong performance by both segments and the Cardiovascular segment’s product categories also contributed to the top line.
Total revenues at constant exchange rate (CER) inched up 9.4% year over year, whereas CER, organic revenues increased 9.1% year over year.
Segmental Details
Merit Medical operates through two segments — Cardiovascular and Endoscopy.
The Cardiovascular unit reported second-quarter revenues of $311.3 million, up 8.6% on a reported basis and 9.5% at CER year over year.
This figure compares to our segmental projection of $300.9 million for the second quarter.
The Cardiovascular segment includes the following product categories: Peripheral Intervention (PI), Cardiac Intervention (CI), Custom Procedural Solutions (CPS) and original equipment manufacturer (OEM).
PI product line revenues were $125.9 million, up 13.5% on a reported basis and 14.4% at CER year over year. This compares to our projection of $116.9 million.
CI revenues of $93.8 million rose 4.7% on a reported basis and 6% at CER year over year. This compares to our projection of $92.3 million.
CPS revenues improved 0.6% on a reported basis and 1.3% at CER year over year to $49.4 million. This compares to our projection of $53.4 million.
OEM revenues climbed 13.9% on a reported basis and 13.7% at CER year over year to $42.2 million. This compares to our projection of $38.2 million.
Endoscopy devices’ revenues totaled $8.8 million, up 5.7% year over year on a reported basis. At CER, revenues jumped 6% year over year.
This figure compares to our segmental projection of $8.9 million for the second quarter.
Merit Medical Systems, Inc. Price, Consensus and EPS Surprise
Merit Medical Systems, Inc. price-consensus-eps-surprise-chart | Merit Medical Systems, Inc. Quote
Margins
In the quarter under review, Merit Medical’s gross profit rose 13.1% to $152.8 million. The gross margin expanded 195 basis points (bps) to 47.7%.
We had projected 46.3% of gross margin for the second quarter.
Selling, general & administrative expenses rose 18.1% to $100.9 million. Research and development expenses rose 9% year over year to $20.1 million. Adjusted operating expenses of $121.1 million increased 16.5% year over year.
Adjusted operating profit totaled $31.7 million, reflecting a 1.9% increase from the prior-year quarter. However, the adjusted operating margin in the second quarter contracted by 64 bps to 9.9%.
Financial Position
Merit Medical exited second-quarter 2023 with cash and cash equivalents of $72.1 million compared with $57.9 million at the first-quarter end. Total debt (including the current portion) at the end of second-quarter 2023 was $338.9 million compared with $197.7 million at the end of the first quarter.
Cumulative net cash flow provided by operating activities at the end of second-quarter 2023 was $31.8 million compared with $50.8 million a year ago.
2023 Guidance
Merit Medical has revised its 2023 outlook from the one it had provided in June after it completed the acquisition of a portfolio of dialysis catheter products and the BioSentry Biopsy Tract Sealant System from AngioDynamics.
Net revenues for 2023 are continued to be projected between $1.230 billion and $1.244 billion, reflecting an increase of approximately 7-8% over the comparable reported figures of 2022. The Zacks Consensus Estimate for the same stands at $1.24 billion.
Net revenues from the cardiovascular segment are now expected to be in the range of $1.193 billion-$1.207 billion, representing an increase of approximately 7-8% over the comparable reported figures of 2022. This is up from the prior outlook of $1.192 billion-$1.206 billion, representing an increase of approximately 7-8% over the comparable reported figures of 2022.
The endoscopy segment’s net revenues are now projected to be between $36.8 million and $37 million, representing an increase of approximately 12-13% over the comparable reported figures of 2022. This is lower than the prior outlook of $37.8 million and $38.1 million, representing an increase of approximately 15-16% over the comparable reported figures of 2022.
Adjusted EPS for 2023 is continued to be projected within $2.81-$2.92. The Zacks Consensus Estimate for the same stands at $2.89.
Our Take
Merit Medical exited the second quarter of 2023 with better-than-expected results. The year-over-year uptick in the top and bottom lines was impressive. The company saw revenue growth in both its segments and across all the product categories within its Cardiovascular unit. Robust performances in the United States and outside were impressive. Strong execution and improving customer demand trends pushed up the overall top line, which was encouraging. The expansion of gross margin bodes well for the stock.
In June, Merit Medical completed the acquisition of a portfolio of dialysis catheter products and the BioSentry Biopsy Tract Sealant System. This followed Merit Medical’s acquisition of the Surfacer Inside-Out Access Catheter System from Bluegrass Vascular Technologies, Inc. These acquisitions will likely strengthen its position in the dialysis and biopsy markets, besides expanding its growing specialty dialysis device offering. These also look promising for the stock.
However, the adjusted operating margin contraction in the quarter does not bode well. The current challenging global macro environment also raises our apprehension.
Zacks Rank and Other Key Picks
Merit Medical currently has a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 15.7%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Merit Medical Systems, Inc. (MMSI) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30868.0 | 2023-07-26 00:00:00 UTC | Universal Health (UHS) Q2 Earnings Beat, Boosts '23 EPS View | ABT | https://www.nasdaq.com/articles/universal-health-uhs-q2-earnings-beat-boosts-23-eps-view | nan | nan | Universal Health Services, Inc. UHS reported second-quarter 2023 adjusted earnings per share (EPS) of $2.53, which beat the Zacks Consensus Estimate by 2%. The bottom line climbed 15% year over year.
Net revenues amounted to $3,548 million, which rose 6.8% year over year in the quarter under review. The top line outpaced the consensus mark by 1.3%.
The strong quarterly results of UHS were supported by a growing patient base at its acute care and behavioral health care facilities, which led to strong segmental contributions. Higher adjusted patient days also provided an impetus to the results. However, the upside was partly offset by escalating salaries, wages and benefits expense.
Universal Health Services, Inc. Price, Consensus and EPS Surprise
Universal Health Services, Inc. price-consensus-eps-surprise-chart | Universal Health Services, Inc. Quote
Quarterly Operational Update
Adjusted earnings before interest, taxes, depreciation & amortization (EBITDA), net of net income attributable to noncontrolling interests (NCI), improved 11.3% year over year to $425.9 million in the second quarter, higher than our estimate of $401.8 million. The metric does not consider the impact of other (income) expenses, net.
Total operating costs of $3,268 million increased 5.8% year over year due to higher salaries, wages and benefits, other operating expenses, supplies costs and, lease and rental expenses.
Segmental Update
Acute Care Hospital Services
In the second quarter, adjusted admissions (adjusted for outpatient activity) advanced 7.7% year over year on a same-facility basis. Adjusted patient days rose 6.9% year over year. Net revenues stemming from Universal Health’s acute care services improved 9.7% year over year on a same-facility basis.
Behavioral Health Care Services
Adjusted admissions grew 3.3% year over year on a same-facility basis in the quarter under review. Our estimate indicated the metric to witness 5.4% year-over-year growth. Meanwhile, adjusted patient days inched up 1.5% year over year. On a same-facility basis, net revenues derived from the behavioral healthcare services of UHS increased 7.8% year over year.
Financial Update (as of Jun 30, 2023)
Universal Health exited the second quarter with cash and cash equivalents of $79.5 million, which plunged 22.7% from the level at 2022 end.
As part of the $1.2 billion revolving credit facility of UHS, net of outstanding borrowings and letters of credit, there remains an aggregate available borrowing capacity of $946 million at the second-quarter end.
Total assets of $13,732.3 million increased 1.8% from the 2022-end figure.
Long-term debt amounted to $4,605.1 million, which declined 2.6% from the figure as of Dec 31, 2022. Short-term debt totaled $111.4 million.
Total equity increased 2.7% from the 2022-end level to $6,128.8 million.
In the first half of 2023, UHS generated cash flows from operations of $653.7 million, which climbed 36.7% from the prior-year comparable period. The growth came on the back of favorable other working capital accounts.
Share Repurchase Update
Universal Health bought back shares worth roughly $113.4 million in the second quarter. It had a leftover repurchase capacity of around $755 million as of Jun 30, 2023.
2023 Guidance Revised
On the basis of the financial performance observed in the first half of 2023, management hiked the lower end of its 2023 outlook range for certain metrics.
Management presently forecasts net revenues to be between $14,130 million and $14,330 million for this year, compared with the earlier range of $14,044-$14,314 million. The midpoint of the revised outlook implies 6.2% growth from the 2022 reported figure.
Adjusted EBITDA, net of NCI, is estimated within $1,696-$1,756 million, compared with the previous view of $1,662-$1,753 million. The midpoint of the updated guidance suggests 3.9% improvement from the 2022 figure.
UHS projects adjusted EPS in the range of $9.85-$10.50, compared with the prior view of $9.50-$10.50 for 2023. The midpoint of the revised forecast indicates a rise of 3% from the 2022 figure.
Depreciation and amortization are currently anticipated at $584.7 million. Interest expenses are estimated at around $199 million.
Earlier, capital expenditures were expected within $725 million and $875 million for 2023.
Zacks Rank
Universal Health currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate.
Elevance Health reported second-quarter 2023 adjusted net income of $9.04 per share, which outpaced the Zacks Consensus Estimate by 2.5%. The bottom line improved 13.4% year over year. ELV’s operating revenues, which amounted to $43,377 million, rose 12.7% year over year in the quarter under review. The top line surpassed the consensus mark by 4.5%. Medical membership of Elevance Health totaled around 48 million as of Jun 30, 2023, which increased 2% year over year in the second quarter. Overall premiums grew 10.6% year over year to $36,589 million in the quarter under review.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate of $1.32 by 7.6%. The bottom line improved 24.6% year over year. ISRG reported revenues of $1.76 billion, up 15.4% from the prior-year quarter’s number. On a constant currency (cc) basis, revenues were up 17% year over year. The top line beat the consensus estimate by 1.4%. Adjusted operating income totaled $617.6 million, up 16.3% year over year. Revenues at the Instruments & Accessories segment totaled $1.08 billion, indicating a year-over-year improvement of 20.2%.
Abbott Laboratories reported second-quarter 2023 adjusted earnings of $1.08 per share, which topped the Zacks Consensus Estimate by 3.8%. However, the adjusted figure declined from the prior-year quarter’s levels by 24.5%. Second-quarter worldwide sales of $9.98 billion were down 11.4% year over year on a reported basis. The top line exceeded the consensus estimate by 2.9%. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Also, the adjusted operating margin contracted 517 bps to 20.4%. Established Pharmaceuticals segment’s product sales increased 5.2% on a reported basis (up 12.6% on an organic basis) to $1.29 billion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. | Other Medical Sector Releases Of the Medical sector players that have reported second-quarter 2023 results so far, the bottom-line results of Elevance Health, Inc. ELV, Intuitive Surgical, Inc. ISRG and Abbott Laboratories ABT beat the respective Zacks Consensus Estimate. ABT reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Universal Health Services, Inc. (UHS) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30869.0 | 2023-07-26 00:00:00 UTC | Thermo Fisher (TMO) Q2 Earnings Miss Estimates, Margins Down | ABT | https://www.nasdaq.com/articles/thermo-fisher-tmo-q2-earnings-miss-estimates-margins-down | nan | nan | Thermo Fisher Scientific Inc.'s TMO second-quarter 2023 adjusted earnings per share (EPS) of $5.15 lagged the Zacks Consensus Estimate by 5.2%. The figure also declined 6.5% year over year.
The adjusted number excludes certain non-recurring expenses, including asset amortization costs and certain restructuring costs.
GAAP EPS was $3.51, down 18.8% on a year-over-year basis.
Revenues in Detail
Revenues in the quarter totaled $10.69 billion, down 2.6% year over year. The top line lagged the Zacks Consensus Estimate by 2.8%.
Segment Details
Organic revenues in the reported quarter declined 3% year over year, while Core organic revenue growth was 2%.
Thermo Fisher operates under four business segments — Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics and Laboratory Products and Biopharma Services.
Revenues in the Life Sciences Solutions segment (23% of total revenues) declined 25.2% year over year to $2.46 billion, while Analytical Instruments Segment sales (16.4%) increased 8.8% to $1.75 billion.
Revenues in the Laboratory Products and Biopharma Services segment (54.6%) rose 5.3% to $5.83 billion. The Specialty Diagnostics segment (10.4%) recorded a 0.7% year-over-year rise in revenues to $1.11 billion.
Margin Analysis
The gross margin of 40.8% in the second quarter contracted 228 basis points (bps) year over year on a 1.3% rise in the cost of revenues.
In the quarter, selling, general and administrative expenses fell 3.9% to $1.67 billion. Research and development expenses declined 5.5% to $345 million.
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise
Thermo Fisher Scientific Inc. price-consensus-eps-surprise-chart | Thermo Fisher Scientific Inc. Quote
The adjusted operating margin in the quarter came in at 21.9%, reflecting a contraction of 198 bps.
Financial Position
The company exited second-quarter 2023 with cash and cash equivalents of $3.13 billion compared with $3.48 billion at the end of first-quarter 2023.
Cumulative net cash provided by operating activities was $2.27 billion compared with $3.73 billion a year ago.
Thermo Fisher has a consistent dividend-paying history, with the five-year annualized dividend growth being 16.43%.
Guidance
Thermo Fisher updated its full-year 2023 guidance.
The company expects 2023 revenues in the range of $43.4-$44.0 billion, with Core organic revenue growth of 2-4%. The Zacks Consensus Estimate for the same is pegged at $45.24 billion.
The adjusted EPS is expected in the range of $22.28-$22.72. The Zacks Consensus Estimate for the metric is pegged at $23.60 billion.
Our Take
Thermo Fisher exited the second quarter of 2023 with lower-than-expected results. The challenging macroeconomic environment and a slowdown in economic activity in China and across the world hampered revenues. The year-over-year decline in revenues in the Life Science Solutions is disappointing. The contraction of margins, due to escalating costs and expenses, does not bode well either. The year-over-year decline in adjusted earnings is a concern.
On a positive note, the robust year-over-year revenue growth in the Analytical Instruments and the Laboratory Products and Biopharma Services segments is promising. During the first quarter, strong execution of proven growth strategy, launching a range of high-impact, innovative new products aided the company’s growth. The company strengthened its industry-leading commercial engine and trusted partner status with the opening of a state-of-the-art customer center of excellence in Milan. This allowed it to consolidate capabilities from across the company to better serve customers and enhance productivity.
Zacks Rank and Key Picks
Thermo Fisher currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30870.0 | 2023-07-26 00:00:00 UTC | Medical Device Stocks' Q2 Earnings on Jul 27: BSX, LH & IART | ABT | https://www.nasdaq.com/articles/medical-device-stocks-q2-earnings-on-jul-27%3A-bsx-lh-iart | nan | nan | The second-quarter 2023 reporting cycle for the Medical Device space has started with Abbott ABT reporting better-than-expected earnings and sales. The gradual improvement in the economic scenario compared to the first quarter implies that trading volumes have risen. This is expected to be reflected in the results of the industry players.
Some major industry players like Boston Scientific BSX, Laboratory Corporation of America Holdings or LabCorp LH and Integra LifeSciences Holdings Corporation IART are set to report their results tomorrow.
Q2 Preview and Scorecard
Per the latest Earnings Preview, quarterly results so far have improved year over year despite the ongoing macroeconomic headwinds in the form of worldwide inflationary pressure and unfavorable foreign exchange headwind. Going by the broader Medical sector’s scorecard, 3.4% of the companies in the Medical sector, constituting 12.3% of the sector’s market capitalization, reported earnings till Jul 19. Of these, 100% beat earnings and revenue estimates. Earnings improved 9.3% year over year on 14% higher revenues.
However, overall, second-quarter earnings of the Medical sector are expected to plunge 18.6% despite 3.4% revenue growth. This compares with the first-quarter earnings decline of 17.9% on revenue growth of 4%.
Factors That Influenced Medical Device Stocks
Replicating the broader market trend, Medical Device or the Zacks-defined Medical Products companies’ collective business growth in the second quarter is likely to have been significantly dampened by the ongoing macroeconomic threat in the United States and outside. Through the second-quarter months, the companies, which are into international trade, are expected to have faced severe currency headwinds. During this period, the U.S. dollar remained strong compared to several foreign currencies, which is expected to have had an unfavorable impact on sales.
Further, in Medical Devices, going by the industry-wide trend, logistical challenges and increasing unit costs are likely to have weighed heavily on the corporate profitability of stocks across the board. This might have, in a way, shrunk the companies’ revenues in the second quarter compared to the prior quarter.
On a positive note, companies’ successful addressing of a couple of years’ pent-up demand is likely to have led to higher year-over-year growth within the legacy base businesses. During the post-pandemic phase, the key focus of medical device R&D has again shifted from COVID-related PPE, testing and distant care options to point-of-care testing, heavy as well as minimally invasive implants, elective procedures and so forth. Accordingly, legacy base business recovery and testing demand through the months of the second quarter are expected to have been impressive. Meanwhile, AI and robotics for the medical Internet of Things (IoT), which rose to the limelight during the pandemic phase, remained popular.
Medical Device Stocks to Watch
Let's take a look at four defense companies that are scheduled to report second-quarter 2023 earnings on Jul 27 and find out how things might have shaped up prior to the announcements.
Boston Scientific: An improved scenario in terms of hospital visits and elective medical procedures, along with an innovative pipeline, expansion into faster growth markets, globalization efforts and enhanced digital capabilities, poise BSX well to register decent second-quarter 2023 results. Boston Scientific is particularly expected to have registered strong growth in EMEA within structural heart, including Transcatheter aortic valve replacement, WATCHMAN and other interventional cardiology therapies. It is also expected to have recorded growth in electrophysiology divisions, fueled by ongoing investments in emerging markets, new and ongoing product launches across the portfolio, pricing discipline and strong commercial execution.
(Read more: Will Boston Scientific Beat Q2 Earnings Estimates?)
The Zacks Consensus Estimate for total revenues of $3.50 billion for the second quarter suggests a 7.8% improvement from the prior-year quarter’s reported figure. The consensus mark for BSX’s earnings of 49 cents per share indicates an 11.4% rise from the year-ago quarter’s reported figure.
Per our proven model, a stock with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. This is exactly the case as you can see below.
BSX has an Earnings ESP of +0.47% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Boston Scientific Corporation Price and EPS Surprise
Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation Quote
LabCorp: Similar to the past few quarters, LabCorp is expected to have benefited from an ongoing sales rebound in its legacy Diagnostics business, driven by routine and esoteric testing and a benefit from hospital deals. However, a slowdown in COVID-19 testing is likely to have hampered the sales performance of LabCorp Diagnostics. This is expected to be reflected in its second-quarter results.
(Read more: LabCorp to Report Q2 Earnings: What's in the Cards?)
The Zacks Consensus Estimate for LabCorp’s second-quarter revenues is pegged at $2.99 billion, which implies a plunge of 19.3% from the year-ago figure. The consensus estimate for earnings per share is pegged at $3.47, suggesting a fall of 30% from the prior-year reported figure.
LH has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell).
Laboratory Corporation of America Holdings Price and EPS Surprise
Laboratory Corporation of America Holdings price-eps-surprise | Laboratory Corporation of America Holdings Quote
Integra: It is expected to have gained in the second quarter from healthy demand for its industry-leading products within Codman Specialty Surgical (CSS). The segment has been benefiting from the growing market acceptance of the company’s global neurosurgery line-ups, including CSS management and neuromonitoring. Further, Integra’s Tissue Technologies business is expected to report strong second-quarter sales on efficient growth strategies and a better price management policy.
The Zacks Consensus Estimate for Integra’s second-quarter revenues is pegged at $373.9 million, which implies a 6% decline from the year-ago figure. The consensus estimate for earnings per share is pegged at 57 cents, suggesting a fall of 30.5% from the prior-year reported figure.
IART has an Earnings ESP of -1.75% and a Zacks Rank #4 (Sell).
Integra LifeSciences Holdings Corporation Price and EPS Surprise
Integra LifeSciences Holdings Corporation price-eps-surprise | Integra LifeSciences Holdings Corporation Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The second-quarter 2023 reporting cycle for the Medical Device space has started with Abbott ABT reporting better-than-expected earnings and sales. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report To read this article on Zacks.com click here. Medical Device Stocks to Watch Let's take a look at four defense companies that are scheduled to report second-quarter 2023 earnings on Jul 27 and find out how things might have shaped up prior to the announcements. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report To read this article on Zacks.com click here. The second-quarter 2023 reporting cycle for the Medical Device space has started with Abbott ABT reporting better-than-expected earnings and sales. Laboratory Corporation of America Holdings Price and EPS Surprise Laboratory Corporation of America Holdings price-eps-surprise | Laboratory Corporation of America Holdings Quote Integra: It is expected to have gained in the second quarter from healthy demand for its industry-leading products within Codman Specialty Surgical (CSS). | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report To read this article on Zacks.com click here. The second-quarter 2023 reporting cycle for the Medical Device space has started with Abbott ABT reporting better-than-expected earnings and sales. Boston Scientific Corporation Price and EPS Surprise Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation Quote LabCorp: Similar to the past few quarters, LabCorp is expected to have benefited from an ongoing sales rebound in its legacy Diagnostics business, driven by routine and esoteric testing and a benefit from hospital deals. | The second-quarter 2023 reporting cycle for the Medical Device space has started with Abbott ABT reporting better-than-expected earnings and sales. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report To read this article on Zacks.com click here. However, overall, second-quarter earnings of the Medical sector are expected to plunge 18.6% despite 3.4% revenue growth. |
30871.0 | 2023-07-26 00:00:00 UTC | Quest Diagnostics (DGX) Q2 Earnings Beat Estimates, FY View Up | ABT | https://www.nasdaq.com/articles/quest-diagnostics-dgx-q2-earnings-beat-estimates-fy-view-up | nan | nan | Quest Diagnostics Incorporated’s DGX second-quarter 2023 adjusted earnings per share (EPS) of $2.30 beat the Zacks Consensus Estimate by 3.1%. However, adjusted earnings declined 2.5% from the year-ago adjusted figure.
Certain one-time expenses, like the ones related to amortization expenses, certain restructuring and integration charges, other expenses and excess tax benefits associated with stock-based compensations were excluded from the quarter’s adjusted figures.
GAAP earnings came in at $2.05 per share, up 4.6% from the year-ago reported figure.
Revenues
Reported revenues in the second quarter declined 4.7% year over year to $2.34 billion. However, revenues exceeded the Zacks Consensus Estimate by 4.5%.
Quest Diagnostics Incorporated Price, Consensus and EPS Surprise
Quest Diagnostics Incorporated price-consensus-eps-surprise-chart | Quest Diagnostics Incorporated Quote
Quarterly Details
Base Business (excludes COVID-19 testing) revenues were $2.30 billion in the reported quarter, up 9.5% year over year. This figure compares with our model’s projection of $2.18 billion for the second quarter.
COVID-19 Testing revenues nosedived 88.3% in the second quarter to $41 million. However, the figure still exceeded our model’s projected revenues of $22.9 million from this segment in the second quarter of 2023.
Diagnostic Information Services revenues in the quarter were down 4.9% on a year-over-year basis to $2.27 billion. This figure compares with our model’s projection of $2.13 billion for the second quarter.
Volumes (measured by the number of requisitions) were up 0.2% year over year in the second quarter. Revenue per requisition declined 4.9% year over year.
Margins
The cost of services during the reported quarter was $1.55 billion, down 4% year over year. The gross profit declined 5.9% to $792 million. The gross margin was 33.9%, reflecting a 45-basis point (bps) contraction from the year-ago figure.
SG&A expenses fell 1.4% to $416 million in the quarter under review. The adjusted operating margin of 16.1% represented a 104-bps contraction year over year.
Cash, Capital Structure and Solvency
Quest Diagnostics exited the second quarter of 2023 with cash and cash equivalents of $126 million compared with $315 million at the end of 2022. The cumulative net cash provided by operating activities at the end of the second quarter was $538 million compared with $882 million in the year-ago period.
The company has a five-year annualized dividend growth rate of 7.25%.
Guidance
Quest Diagnostics updated its full-year 2023 guidance.
Full-year net revenue estimates were raised to a new range of $9.12-$9.22 billion (from the earlier band of $8.93-$9.08 billion). The Zacks Consensus Estimate for the same is pegged at $9.02 billion.
Adjusted EPS is now expected in the range of $8.50-$8.90 (up from the $8.45-$8.95 band earlier). The Zacks Consensus Estimate for the metric is pegged at $8.67.
Our Take
Quest Diagnostics reported better-than-expected earnings and revenues in the second quarter of 2023. Strength demonstrated in the base business is encouraging, reflecting the company’s ongoing efforts to partner with health plans, hospitals and physicians amid a continued return to care.
The company noted the substantial progress made toward improving the profitability of the base business compared to the first quarter and the prior year, which bodes well. DGX’s updated outlook for the full year boosts optimism while operating in a tight labor market.
Meanwhile, year-over-year declines in the top line and earnings are worrisome. COVID-19 testing revenues fell significantly in the reported quarter. A contraction of both margins raises apprehension.
Zacks Rank and Key Picks
Quest Diagnostics currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2 (Buy), reported a second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported a second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported a second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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Abbott Laboratories (ABT) : Free Stock Analysis Report
Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
Elevance Health, Inc. (ELV) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30872.0 | 2023-07-26 00:00:00 UTC | Abbott Laboratories (ABT) is Attracting Investor Attention: Here is What You Should Know | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-is-attracting-investor-attention%3A-here-is-what-you-should-know-0 | nan | nan | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of infant formula, medical devices and drugs have returned +4.8% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Medical - Products industry, to which Abbott belongs, has gained 0.2% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Abbott is expected to post earnings of $1.10 per share for the current quarter, representing a year-over-year change of -4.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.
The consensus earnings estimate of $4.40 for the current fiscal year indicates a year-over-year change of -17.6%. This estimate has changed +0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.60 indicates a change of +4.5% from what Abbott is expected to report a year ago. Over the past month, the estimate has changed +1.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abbott is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Abbott, the consensus sales estimate of $9.78 billion for the current quarter points to a year-over-year change of -6.1%. The $39.71 billion and $41.64 billion estimates for the current and next fiscal years indicate changes of -9% and +4.9%, respectively.
Last Reported Results and Surprise History
Abbott reported revenues of $9.98 billion in the last reported quarter, representing a year-over-year change of -11.4%. EPS of $1.08 for the same period compares with $1.43 a year ago.
Compared to the Zacks Consensus Estimate of $9.7 billion, the reported revenues represent a surprise of +2.84%. The EPS surprise was +3.85%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abbott is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abbott. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of this maker of infant formula, medical devices and drugs have returned +4.8% over the past month versus the Zacks S&P 500 composite's +5.1% change. | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abbott is rated Zacks Rank #2 (Buy). | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. | Abbott (ABT) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up. |
30873.0 | 2023-07-26 00:00:00 UTC | Quest Diagnostics beats profit estimates as routine testing picks up | ABT | https://www.nasdaq.com/articles/quest-diagnostics-beats-profit-estimates-as-routine-testing-picks-up | nan | nan | July 26 (Reuters) - Laboratory operator Quest Diagnostics Inc DGX.N beat estimates for quarterly profit on Wednesday, as people returned for regular checkups and tests that were delayed during a large part of the COVID-19 pandemic.
Non-COVID testing at companies such as Quest and rival Labcorp LH.N was hit as people delayed routine health check-ups following pandemic-led lockdowns, but that demand has now started to normalize while COVID testing sales have fallen.
Sales from Quest's base business, excluding COVID products, rose 9.5% to $2.3 billion in the second quarter.
Last week, medical device maker Abbott Laboratories ABT.N also reported an increase in demand for its diagnostic products, excluding COVID-related sales.
At Quest, quarterly global sales of its COVID-19 test kits – which had boosted revenue for the company during the pandemic – continue to decline further, registering a 88.3% plunge to $41 million as the U.S. government ended the COVID-19 Public Health Emergency in May.
The company has raised its 2023 sales forecast for its base business to $8.92 billion to $9.02 billion, from a previous view of $8.78 billion to $8.88 billion.
Quest also expects adjusted profit for 2023 between $8.50 and $8.90 compared with its previous forecast of $8.45 per share to $8.95 per share.
Analysts expect full-year adjusted profit at $8.7 per share.
Excluding one-off items, the company posted a profit of $2.30 per share for the quarter ended June 30, higher than analysts' average estimate of $2.27 per share, according to Refinitiv data.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber)
((Khushi.Mandowara@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last week, medical device maker Abbott Laboratories ABT.N also reported an increase in demand for its diagnostic products, excluding COVID-related sales. July 26 (Reuters) - Laboratory operator Quest Diagnostics Inc DGX.N beat estimates for quarterly profit on Wednesday, as people returned for regular checkups and tests that were delayed during a large part of the COVID-19 pandemic. At Quest, quarterly global sales of its COVID-19 test kits – which had boosted revenue for the company during the pandemic – continue to decline further, registering a 88.3% plunge to $41 million as the U.S. government ended the COVID-19 Public Health Emergency in May. | Last week, medical device maker Abbott Laboratories ABT.N also reported an increase in demand for its diagnostic products, excluding COVID-related sales. July 26 (Reuters) - Laboratory operator Quest Diagnostics Inc DGX.N beat estimates for quarterly profit on Wednesday, as people returned for regular checkups and tests that were delayed during a large part of the COVID-19 pandemic. Sales from Quest's base business, excluding COVID products, rose 9.5% to $2.3 billion in the second quarter. | Last week, medical device maker Abbott Laboratories ABT.N also reported an increase in demand for its diagnostic products, excluding COVID-related sales. Non-COVID testing at companies such as Quest and rival Labcorp LH.N was hit as people delayed routine health check-ups following pandemic-led lockdowns, but that demand has now started to normalize while COVID testing sales have fallen. The company has raised its 2023 sales forecast for its base business to $8.92 billion to $9.02 billion, from a previous view of $8.78 billion to $8.88 billion. | Last week, medical device maker Abbott Laboratories ABT.N also reported an increase in demand for its diagnostic products, excluding COVID-related sales. Non-COVID testing at companies such as Quest and rival Labcorp LH.N was hit as people delayed routine health check-ups following pandemic-led lockdowns, but that demand has now started to normalize while COVID testing sales have fallen. Sales from Quest's base business, excluding COVID products, rose 9.5% to $2.3 billion in the second quarter. |
30874.0 | 2023-07-26 00:00:00 UTC | Should You Invest in the iShares U.S. Medical Devices ETF (IHI)? | ABT | https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-u.s.-medical-devices-etf-ihi-7 | nan | nan | If you're interested in broad exposure to the Healthcare - Medical Devices segment of the equity market, look no further than the iShares U.S. Medical Devices ETF (IHI), a passively managed exchange traded fund launched on 05/01/2006.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Healthcare - Medical Devices is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $6.23 billion, making it one of the largest ETFs attempting to match the performance of the Healthcare - Medical Devices segment of the equity market. IHI seeks to match the performance of the Dow Jones U.S. Select Medical Equipment Index before fees and expenses.
The Dow Jones U.S. Select Medical Equipment Index measures the performance of the medical equipment sector of the U.S. equity market.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.39%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.45%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Healthcare sector--about 100% of the portfolio.
Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.24% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT).
The top 10 holdings account for about 70.60% of total assets under management.
Performance and Risk
The ETF has added about 9.52% so far this year and was up about 10.18% in the last one year (as of 07/26/2023). In that past 52-week period, it has traded between $47.07 and $57.59.
The ETF has a beta of 0.85 and standard deviation of 19.95% for the trailing three-year period, making it a medium risk choice in the space. With about 70 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Medical Devices ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IHI is an excellent option for investors seeking exposure to the Health Care ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX GLOBAL MEDICAL EQUIPMENT INDEX and the SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. First Trust Indxx Medical Devices ETF has $2.10 million in assets, SPDR S&P Health Care Equipment ETF has $622.50 million. MDEV has an expense ratio of 0.70% and XHE charges 0.35%.
Bottom Line
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iShares U.S. Medical Devices ETF (IHI): ETF Research Reports
Abbott Laboratories (ABT) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports
First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.24% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Click to get this free report iShares U.S. Medical Devices ETF (IHI): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports To read this article on Zacks.com click here. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. | Click to get this free report iShares U.S. Medical Devices ETF (IHI): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.24% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX GLOBAL MEDICAL EQUIPMENT INDEX and the SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. | Click to get this free report iShares U.S. Medical Devices ETF (IHI): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.24% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). First Trust Indxx Medical Devices ETF (MDEV) tracks INDXX GLOBAL MEDICAL EQUIPMENT INDEX and the SPDR S&P Health Care Equipment ETF (XHE) tracks S&P Health Care Equipment Select Industry Index. | Looking at individual holdings, Thermo Fisher Scientific Inc (TMO) accounts for about 17.24% of total assets, followed by Abbott Laboratories (ABT) and Medtronic Plc (MDT). Click to get this free report iShares U.S. Medical Devices ETF (IHI): ETF Research Reports Abbott Laboratories (ABT) : Free Stock Analysis Report Medtronic PLC (MDT) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report SPDR S&P Health Care Equipment ETF (XHE): ETF Research Reports First Trust Indxx Medical Devices ETF (MDEV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Healthcare - Medical Devices segment of the equity market, look no further than the iShares U.S. Medical Devices ETF (IHI), a passively managed exchange traded fund launched on 05/01/2006. |
30875.0 | 2023-07-26 00:00:00 UTC | Reckitt beats quarterly like-for-like sales estimates, raises HY dividend | ABT | https://www.nasdaq.com/articles/reckitt-beats-quarterly-like-for-like-sales-estimates-raises-hy-dividend | nan | nan | Updates with details on 2023 outlook, HY revenue growth and CEO comment
July 26 (Reuters) - Reckitt Benckiser RKT.L on Wednesday forecast its full-year adjusted operating margins to be slightly above 2022 levels after the British company beat quarterly like-for-like (LFL) net revenue estimates, helped by its hygiene and health businesses.
Reckitt, the maker of Dettol and Lysol cleaning products, said its second-quarter like-for-like revenue rose 4.1% on a constant-currency basis, ahead of the 3.7% growth analysts had expected in a company-supplied poll.
The company retained its 2023 target range of 3% to 5% for group LFL net revenue growth and expects adjusted operating margins to be slightly above 2022 levels, excluding last year's one-off benefit of about 80 basis points related to an infant formula supply disruption in the U.S.
"The strong first-half performance gives us confidence in our full-year targets, despite some tough comparatives in our OTC portfolio and an expected tougher competitive environment in US Nutrition in H2," CEO Nicandro Durante said. For the first half, Reckitt's LFL net revenue growth also beat analysts' expectations.
During the same period last year, Reckitt's sales benefited from a baby formula shortage in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands.
The company on Wednesday raised its dividend to 76.6 pence for the first half, from 73 pence in the year-ago period.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Sherry Jacob-Phillips)
((Chandini.M@thomsonreuters.com; +918061822697;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | During the same period last year, Reckitt's sales benefited from a baby formula shortage in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands. Reckitt, the maker of Dettol and Lysol cleaning products, said its second-quarter like-for-like revenue rose 4.1% on a constant-currency basis, ahead of the 3.7% growth analysts had expected in a company-supplied poll. The company retained its 2023 target range of 3% to 5% for group LFL net revenue growth and expects adjusted operating margins to be slightly above 2022 levels, excluding last year's one-off benefit of about 80 basis points related to an infant formula supply disruption in the U.S. "The strong first-half performance gives us confidence in our full-year targets, despite some tough comparatives in our OTC portfolio and an expected tougher competitive environment in US Nutrition in H2," CEO Nicandro Durante said. | During the same period last year, Reckitt's sales benefited from a baby formula shortage in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands. Updates with details on 2023 outlook, HY revenue growth and CEO comment July 26 (Reuters) - Reckitt Benckiser RKT.L on Wednesday forecast its full-year adjusted operating margins to be slightly above 2022 levels after the British company beat quarterly like-for-like (LFL) net revenue estimates, helped by its hygiene and health businesses. The company retained its 2023 target range of 3% to 5% for group LFL net revenue growth and expects adjusted operating margins to be slightly above 2022 levels, excluding last year's one-off benefit of about 80 basis points related to an infant formula supply disruption in the U.S. "The strong first-half performance gives us confidence in our full-year targets, despite some tough comparatives in our OTC portfolio and an expected tougher competitive environment in US Nutrition in H2," CEO Nicandro Durante said. | During the same period last year, Reckitt's sales benefited from a baby formula shortage in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands. Updates with details on 2023 outlook, HY revenue growth and CEO comment July 26 (Reuters) - Reckitt Benckiser RKT.L on Wednesday forecast its full-year adjusted operating margins to be slightly above 2022 levels after the British company beat quarterly like-for-like (LFL) net revenue estimates, helped by its hygiene and health businesses. The company retained its 2023 target range of 3% to 5% for group LFL net revenue growth and expects adjusted operating margins to be slightly above 2022 levels, excluding last year's one-off benefit of about 80 basis points related to an infant formula supply disruption in the U.S. "The strong first-half performance gives us confidence in our full-year targets, despite some tough comparatives in our OTC portfolio and an expected tougher competitive environment in US Nutrition in H2," CEO Nicandro Durante said. | During the same period last year, Reckitt's sales benefited from a baby formula shortage in the United States, after market leader Abbott Laboratories ABT.L recalled dozens of brands. For the first half, Reckitt's LFL net revenue growth also beat analysts' expectations. (Reporting by Chandini Monnappa in Bengaluru; Editing by Sherry Jacob-Phillips) ((Chandini.M@thomsonreuters.com; +918061822697;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
30876.0 | 2023-07-25 00:00:00 UTC | 2 Top Dividend Stocks to Buy and Hold Forever | ABT | https://www.nasdaq.com/articles/2-top-dividend-stocks-to-buy-and-hold-forever | nan | nan | There are several reasons many investors gravitate toward dividend stocks. Some are attracted to the regular income stream, while others opt for dividend reinvestment to boost long-term returns. Whatever the case, it's crucial to pick the right dividend-paying companies, those that are unlikely to suspend or decrease their payouts regardless of economic circumstances.
There are many such corporations to choose from on the market. Let's consider two of them: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT).
1. Johnson & Johnson
Over the years, Johnson & Johnson has certainly been the precise kind of company dividend seekers gravitate toward. The company currently offers a yield of 2.99% (the S&P 500's average is 1.54%) and is a Dividend King, having raised its payouts for 60 consecutive years, a period that included several recessions.
Over the past five years alone -- amid a once-in-a-hundred-years pandemic and the economic problems that came with it -- Johnson & Johnson hiked its dividends by 32.2%.
Still, past performance is not a guarantee of anything. Johnson & Johnson has dealt with issues that could affect it for a while. Most notably, it has encountered thousands of lawsuits related to its talc products, which plaintiffs have alleged cause cancer. Can the company adequately deal with this and other challenges? The answer is yes -- here is why.
Johnson & Johnson's pharmaceutical business is one of the largest in the world. It boasts medicines in a range of therapeutic areas, constantly develops newer products, and generates steady revenue, profits, and cash flow.
JNJ Revenue (Annual) data by YCharts.
Johnson & Johnson's medtech division provides some diversity and other growth avenues. One example lies within the promising robotic-assisted surgery area with its Ottava surgical robot. Further, J&J's revenue growth should increase now that it has eliminated its consumer health division, which typically grew its sales at a lower rate than its remaining segments.
And while the tech giant's legal issues are worth monitoring, Johnson & Johnson has moved closer to putting the most challenging of the bunch in the rearview mirror. The company's innovative ability within a sector that won't become obsolete anytime soon -- spending on prescription drugs will only increase as the world's population ages -- makes it an excellent stock to buy for good.
It also makes Johnson & Johnson's dividends about as safe as they come, so the company should continue rewarding shareholders with payout increases for a long time.
2. Abbott Laboratories
Abbott Laboratories is also a Dividend King, but this one is on its 51st consecutive year of payout increases. The company is a longtime leader in medical devices, although its business extends beyond that area. Its other segments are nutrition, diagnostics, and established pharmaceuticals. Abbott's diversified operations can be a strength.
The company showed as much during the pandemic; its core medical business declined due to the outbreak, but it kept its revenue growing by developing and marketing several coronavirus diagnostics tests. Still, Abbott's medical devices business is the most important for its long-term prospects.
The company has developed several important devices within this segment. Just last year, Abbott's continuous glucose monitoring (CGM) system, the FreeStyle Libre, earned the title of best medical innovation of the past 50 years from the Galien Foundation, a non-profit foundation recognizing innovative technologies in medicine.
The FreeStyle Libre is an especially promising product for Abbott Laboratories. Like other CGM devices, it helps patients stay on top of their blood glucose levels throughout the day much more efficiently than when they use blood glucose meters. The FreeStyle Libre has been linked to better health outcomes for diabetes patients.
Abbott Laboratories is one of the two companies, along with DexCom, that dominate this market. And with the number of diabetes patients (unfortunately) projected to continue growing, this could be a growth driver for Abbott for a while. But it's just one of the many devices in the company's arsenal. The healthcare giant has also made it a habit to grow key metrics.
ABT Revenue (Annual) data by YCharts.
Given the company's innovative ability and entrenched position in the healthcare sector, that should continue for a while. Abbott Laboratories currently offers a yield of 1.91%, which isn't huge but is still a bit higher than the average for the S&P 500. Moreover, the company has increased its dividends by 82% in the past five years. Investors can count on Abbott Laboratories to remain a healthcare leader and an excellent dividend payer.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's consider two of them: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). ABT Revenue (Annual) data by YCharts. It boasts medicines in a range of therapeutic areas, constantly develops newer products, and generates steady revenue, profits, and cash flow. | Let's consider two of them: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). ABT Revenue (Annual) data by YCharts. Just last year, Abbott's continuous glucose monitoring (CGM) system, the FreeStyle Libre, earned the title of best medical innovation of the past 50 years from the Galien Foundation, a non-profit foundation recognizing innovative technologies in medicine. | Let's consider two of them: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). ABT Revenue (Annual) data by YCharts. Johnson & Johnson Over the years, Johnson & Johnson has certainly been the precise kind of company dividend seekers gravitate toward. | Let's consider two of them: Johnson & Johnson (NYSE: JNJ) and Abbott Laboratories (NYSE: ABT). ABT Revenue (Annual) data by YCharts. The company has developed several important devices within this segment. |
30877.0 | 2023-07-25 00:00:00 UTC | NextGen (NXGN) Q1 Earnings Top Estimates, Revenues Surge Y/Y | ABT | https://www.nasdaq.com/articles/nextgen-nxgn-q1-earnings-top-estimates-revenues-surge-y-y | nan | nan | NextGen Healthcare, Inc. NXGN delivered adjusted earnings per share (EPS) of 24 cents in the first quarter of fiscal 2024, up 50% year over year. The figure topped the Zacks Consensus Estimate by 14.3%.
GAAP EPS in the quarter was 9 cents compared with the prior-year period’s EPS of 2 cents.
Revenue Details
NextGen registered revenues of $178.2 million in the fiscal first quarter, up 16.2% year over year. The figure surpassed the Zacks Consensus Estimate by 2.9%.
Segment Details
NextGen generates revenues from two sources, namely, Recurring revenues and Software, hardware and other non-recurring revenues.
Total Recurring revenues were $163.4 million, up 16.9% from the year-ago quarter’s figure. This figure compares to our Recurring revenues’ fiscal first-quarter projection of $156.8 million.
Subscription services revenues in the fiscal first quarter amounted to $52.5 million, up 22.8% from the prior-year period’s level. This figure compares to our fiscal first-quarter projection of $48.5 million.
Support and maintenance revenues amounted to $38.5 million, down 1.6%. This figure compares to our quarterly projection of $40.7 million.
Managed services revenues amounted to $34.8 million, up 13.4%. This figure compares to our projection of $34.1 million.
Transactional and data services revenues amounted to $37.6 million, up 38.2% from the prior-year period’s level. This figure compares to our projection of $33.5 million.
Total Software, hardware and other non-recurring revenues amounted to $14.8 million, up 9.5% on a year-over-year basis. This figure compares to our segmental fiscal first-quarter projection of $15.6 million.
Software license and hardware revenues amounted to $4.9 million, down 19.8%. This figure compares to our fiscal first-quarter projection of $6.6 million.
Other non-recurring services revenues amounted to $9.9 million, up 34.3% year over year. This figure compares to our projection of $9.1 million.
NextGen Healthcare, Inc. Price, Consensus and EPS Surprise
NextGen Healthcare, Inc. price-consensus-eps-surprise-chart | NextGen Healthcare, Inc. Quote
Margins
In the quarter under review, NextGen’s adjusted gross profit increased 7.9% to $86.8 million. However, the adjusted gross margin contracted 372 basis points to 48.7%.
Selling, general and administrative expenses declined 1.7% to $48.2 million. Research and development expenses fell 3.9% year over year to $20.9 million. Adjusted operating expenses of $69.1 million decreased 2.4% year over year.
Adjusted operating profit totaled $17.7 million, improving 85.2% from the prior-year quarter. Adjusted operating margin in the quarter expanded 370 bps to 9.9%.
Financial Position
NextGen exited first-quarter fiscal 2024 with cash and cash equivalents of $70.3 million compared with $98.7 million at the end of fiscal 2023.
As of Jun 30, 2023, 71,892 shares were issued and 67,043 shares were outstanding.
Net cash used in operating activities at first-quarter fiscal 2024-end was $8.1 million compared with $4.6 million a year ago.
Fiscal 2024 Guidance
NextGen has revised its outlook for fiscal 2024.
NextGen now projects revenues in the range of $714 million-$722 million, narrowed from the earlier projection of $712 million-$722 million. The Zacks Consensus Estimate for the same is pegged at $717.8 million.
Adjusted EPS is continued to be projected in the band of $1.04-$1.11 for the full fiscal year. The Zacks Consensus Estimate for the same stands at $1.08.
Our Take
NextGen exited the first quarter of fiscal 2024 with better-than-expected results. The solid uptick in the top line and bottom line, along with strength in both Recurring and Non-recurring revenues, were impressive. Robust increases in Subscription services, Managed services and Transactional and data services revenues in the quarter were encouraging. The improvement in Other non-recurring services revenues was also promising. The continued integration of TSI Healthcare also looks promising for the stock. Adjusted operating margin expansion bodes well.
However, NextGen’s year-over-year decline in Support and maintenance revenues and Software license and hardware revenues was worrying. Rising operating costs leading to the contraction of the adjusted gross margin do not bode well.
Zacks Rank and Other Key Picks
NextGen currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank of 2, reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 4.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NEXTGEN HEALTHCARE, INC (NXGN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NEXTGEN HEALTHCARE, INC (NXGN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NEXTGEN HEALTHCARE, INC (NXGN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. | A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report NEXTGEN HEALTHCARE, INC (NXGN) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report To read this article on Zacks.com click here. |
30878.0 | 2023-07-25 00:00:00 UTC | GE HealthCare raises 2023 profit forecast as supply chain woes ease | ABT | https://www.nasdaq.com/articles/ge-healthcare-raises-2023-profit-forecast-as-supply-chain-woes-ease | nan | nan | July 25 (Reuters) - GE HealthCare Technologies Inc GEHC.O raised its annual profit forecast on Tuesday, after beating quarterly earnings estimates due to easing supply chain issues that had largely impacted electronic components during the pandemic.
GE HealthCare's cost of products rose nearly 9% in the second quarter from a year ago, compared to a faster 11% growth in sales. A surge in demand for healthcare services is driving recovery in the purchase of capital intensive equipment.
Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which make medical devices like heart stents and implants, surpassed quarterly profit estimates last week as patients underwent their delayed procedures.
GE HealthCare on Tuesday reported total quarterly sales of $4.8 billion, in line with analysts' estimates. Of this, $2.6 billion came from sales of imaging devices such as magnetic resonance imaging (MRI) and $839 million from ultrasound devices.
GE HealthCare is one of the three companies that split from General Electric GE.N earlier in January.
The healthcare equipment firm operates four medical device businesses - imaging and ultrasound devices, patient care solutions and pharmaceutical diagnostics - with imaging being the largest.
On an adjusted basis, the medical device maker now expects 2023 profit of $3.70 to $3.85 per share, up from its previous forecast of $3.60 to $3.75 per share.
Excluding items, GE HealthCare earned 92 cents per share in the quarter ended June, ahead of Refinitiv IBES estimates of 87 cents per share.
(Reporting by Khushi Mandowara in Bengaluru; Editing by Shailesh Kuber)
((Khushi.Mandowara@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which make medical devices like heart stents and implants, surpassed quarterly profit estimates last week as patients underwent their delayed procedures. July 25 (Reuters) - GE HealthCare Technologies Inc GEHC.O raised its annual profit forecast on Tuesday, after beating quarterly earnings estimates due to easing supply chain issues that had largely impacted electronic components during the pandemic. GE HealthCare's cost of products rose nearly 9% in the second quarter from a year ago, compared to a faster 11% growth in sales. | Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which make medical devices like heart stents and implants, surpassed quarterly profit estimates last week as patients underwent their delayed procedures. July 25 (Reuters) - GE HealthCare Technologies Inc GEHC.O raised its annual profit forecast on Tuesday, after beating quarterly earnings estimates due to easing supply chain issues that had largely impacted electronic components during the pandemic. GE HealthCare on Tuesday reported total quarterly sales of $4.8 billion, in line with analysts' estimates. | Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which make medical devices like heart stents and implants, surpassed quarterly profit estimates last week as patients underwent their delayed procedures. July 25 (Reuters) - GE HealthCare Technologies Inc GEHC.O raised its annual profit forecast on Tuesday, after beating quarterly earnings estimates due to easing supply chain issues that had largely impacted electronic components during the pandemic. The healthcare equipment firm operates four medical device businesses - imaging and ultrasound devices, patient care solutions and pharmaceutical diagnostics - with imaging being the largest. | Johnson & Johnson JNJ.N and Abbott Laboratories ABT.N, which make medical devices like heart stents and implants, surpassed quarterly profit estimates last week as patients underwent their delayed procedures. GE HealthCare's cost of products rose nearly 9% in the second quarter from a year ago, compared to a faster 11% growth in sales. GE HealthCare on Tuesday reported total quarterly sales of $4.8 billion, in line with analysts' estimates. |
30879.0 | 2023-07-25 00:00:00 UTC | Column: Here’s what AbbVie doesn’t want you to know about its sham AndroGel patent case | ABT | https://www.nasdaq.com/articles/column%3A-heres-what-abbvie-doesnt-want-you-to-know-about-its-sham-androgel-patent-case | nan | nan | By Alison Frankel
(Reuters) - Any way you look at it, AbbVie ABBV.N predecessor Abbott Laboratories ABT.N made a bad decision when it sued generic drug maker Perrigo PRGO.N in 2011, as Perrigo geared up to bring a generic version of AbbVie’s testosterone replacement product AndroGel to market.
The patent infringement lawsuit failed to delay Perrigo’s product. Instead, AbbVie ended up paying Perrigo $2 million and granting the generic maker a license to begin selling a competing testosterone gel five years before AbbVie’s patent expired. (I’m using the company’s current name for the sake of clarity.)
And that wasn’t all. In 2014, the U.S. Federal Trade Commission sued AbbVie and others, for trying to squelch competition for testosterone gel, in part, by filing a sham lawsuit against Perrigo. The 3rd U.S. Circuit Court of Appeals eventually ruled in 2020 that AbbVie’s suit against Perrigo was an objectively baseless sham intended to preserve the company’s monopoly power. (The appeals court did, however, hold that the FTC was not permitted to recoup nearly $450 million in allegedly ill-gotten gains from AbbVie and other defendants.)
Even now, more than a decade after AbbVie filed the ill-fated Perrigo patent suit, the company continues to suffer consequences from it. More than a dozen major drug wholesalers are pursuing antitrust claims in federal court in Philadelphia against AbbVie and Besins Healthcare, alleging that AbbVie’s Perrigo suit was part of an overarching scheme to beat back competing testosterone gel products.
Like I said, the Perrigo suit was a strategic boondoggle.
And now we know that AbbVie’s own lawyers were so skeptical about their case that they discussed the prospect of facing Rule 11 sanctions for filing the suit – and that even before the case hit the docket, AbbVie in-house lawyers debated how much their company would have to pay Perrigo in a settlement.
We also know, as I'll explain, that AbbVie really does not want any of those communications among its lawyers to be public. But in an odd Catch-22 for the company, AbbVie's efforts to keep the information under wraps only served to highlight precisely what the company hoped to keep secret.
An AbbVie spokesperson did not respond to my email. The company's outside counsel in the drug wholesalers' antitrust case, Munger, Tolles & Olson and Faegre Drinker Biddle & Reath, also did not respond to my query.
Here’s how their bid for secrecy backfired. U.S. District Judge Harvey Bartle of Philadelphia is presiding over the drug wholesalers’ suit. Bartle was previously the trial judge in the FTC’s AndroGel case, in which he concluded that AbbVie’s Perrigo patent suit was a sham. That finding, as I mentioned, was later upheld by the 3rd Circuit.
Bartle said in the drug wholesalers' case that he had not changed his mind about AbbVie's suit against Perrigo. In January, he granted summary judgment to the plaintiffs on the question of whether the Perrigo case was objectively baseless.
Plaintiffs lawyers, including Berger Montague and Garwin Gerstein & Fisher, then sought access to about 200 privileged AbbVie documents under the crime-fraud exception. AbbVie argued that under Federal Circuit precedent, the crime fraud exception does not encompass sham litigation, but in March, Bartle held that 3rd Circuit precedent, not Federal Circuit precedent, applies to the wholesalers’ antitrust claims. He ordered AbbVie to produce 100 contested documents for in camera review, then, after viewing that batch, ordered the company to produce all of the privileged documents for his review. AbbVie asked for leave to appeal. Bartle denied it.
On Thursday, the judge issued his decision on the disputed documents, granting the plaintiffs access to 19 documents involving AbbVie's in-house patent lawyers.
“The attorneys were key decisionmakers who directed the filing of sham litigation against Perrigo,” he said. “Thus, the distinction between attorney and client is conflated in this case.”
The judge proceeded to explain why he concluded that specific documents reflected the lawyers’ “furtherance of fraud.” (Among Bartle's points: AbbVie lawyers talked about why their preferred venue for the Perrigo suit was New Jersey federal court, where, in their view, judges take a long time to resolve patent litigation.)
Bartle’s opinion was issued on the public docket, without any redactions. On Friday, AbbVie moved for the opinion to be partially sealed. AbbVie said it intends to appeal Bartle’s order that it disclose the 19 documents, so their content should remain confidential until an appellate court decides whether they’re privileged.
The company also docketed a proposed redacted version, excising references to specific legal advice and strategy.
Bartle granted the motion on Monday. The unredacted opinion is no longer available from Pacer.
But by then, Westlaw had already processed the opinion and created a citation. As of Tuesday afternoon, the unredacted opinion remains available via Westlaw.
So if you want to see what AbbVie considers the most sensitive disclosures in Bartle’s opinion, all you have to do is compare its redacted version of the opinion with the original.
The lawyer’s discussion of New Jersey’s relatively slow pace for patent litigation? That’s redacted. Ditto the disclosure that AbbVie lawyers talked about Rule 11 sanctions for filing the Perrigo suit and that AbbVie in-house counsel debated how much they’d have to pay Perrigo in a settlement before they brought the case accusing Perrigo of infringement.
To be clear, Bartle did not quote extensively in the original opinion from the lawyers’ documents, which have not been publicly docketed. He did not mention any of the in-house lawyers by name and did not cite specific documents in discussing why the crime-fraud exception applies. The judge may have thought he was not disclosing the content of any particular documents by revealing what they showed in broad strokes.
I emailed six plaintiffs lawyers in the drug wholesalers' case to ask about the significance of the disclosures. None responded.
But if Bartle’s ruling hold up and they’re permitted access to the internal defense documents, it sounds like the AbbVie lawyers’ communications will help the plaintiffs show that the company’s lawyers attempted to use AbbVie’s power to deter competitors.
Read more:
Perrigo loses bid to revive antitrust case against AbbVie over AndroGel
US court voids $448 million award against AbbVie, AndroGel partner
(Reporting By Alison Frankel; editing by Leigh Jones)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Alison Frankel (Reuters) - Any way you look at it, AbbVie ABBV.N predecessor Abbott Laboratories ABT.N made a bad decision when it sued generic drug maker Perrigo PRGO.N in 2011, as Perrigo geared up to bring a generic version of AbbVie’s testosterone replacement product AndroGel to market. Circuit Court of Appeals eventually ruled in 2020 that AbbVie’s suit against Perrigo was an objectively baseless sham intended to preserve the company’s monopoly power. The company's outside counsel in the drug wholesalers' antitrust case, Munger, Tolles & Olson and Faegre Drinker Biddle & Reath, also did not respond to my query. | By Alison Frankel (Reuters) - Any way you look at it, AbbVie ABBV.N predecessor Abbott Laboratories ABT.N made a bad decision when it sued generic drug maker Perrigo PRGO.N in 2011, as Perrigo geared up to bring a generic version of AbbVie’s testosterone replacement product AndroGel to market. AbbVie argued that under Federal Circuit precedent, the crime fraud exception does not encompass sham litigation, but in March, Bartle held that 3rd Circuit precedent, not Federal Circuit precedent, applies to the wholesalers’ antitrust claims. On Thursday, the judge issued his decision on the disputed documents, granting the plaintiffs access to 19 documents involving AbbVie's in-house patent lawyers. | By Alison Frankel (Reuters) - Any way you look at it, AbbVie ABBV.N predecessor Abbott Laboratories ABT.N made a bad decision when it sued generic drug maker Perrigo PRGO.N in 2011, as Perrigo geared up to bring a generic version of AbbVie’s testosterone replacement product AndroGel to market. And now we know that AbbVie’s own lawyers were so skeptical about their case that they discussed the prospect of facing Rule 11 sanctions for filing the suit – and that even before the case hit the docket, AbbVie in-house lawyers debated how much their company would have to pay Perrigo in a settlement. “Thus, the distinction between attorney and client is conflated in this case.” The judge proceeded to explain why he concluded that specific documents reflected the lawyers’ “furtherance of fraud.” (Among Bartle's points: AbbVie lawyers talked about why their preferred venue for the Perrigo suit was New Jersey federal court, where, in their view, judges take a long time to resolve patent litigation.) | By Alison Frankel (Reuters) - Any way you look at it, AbbVie ABBV.N predecessor Abbott Laboratories ABT.N made a bad decision when it sued generic drug maker Perrigo PRGO.N in 2011, as Perrigo geared up to bring a generic version of AbbVie’s testosterone replacement product AndroGel to market. Circuit Court of Appeals eventually ruled in 2020 that AbbVie’s suit against Perrigo was an objectively baseless sham intended to preserve the company’s monopoly power. On Thursday, the judge issued his decision on the disputed documents, granting the plaintiffs access to 19 documents involving AbbVie's in-house patent lawyers. |
30880.0 | 2023-07-25 00:00:00 UTC | Barclays Maintains Abbott Laboratories (ABT) Overweight Recommendation | ABT | https://www.nasdaq.com/articles/barclays-maintains-abbott-laboratories-abt-overweight-recommendation-0 | nan | nan | Fintel reports that on July 24, 2023, Barclays maintained coverage of Abbott Laboratories (NYSE:ABT) with a Overweight recommendation.
Analyst Price Forecast Suggests 10.26% Upside
As of July 5, 2023, the average one-year price target for Abbott Laboratories is 126.38. The forecasts range from a low of 104.03 to a high of $151.20. The average price target represents an increase of 10.26% from its latest reported closing price of 114.62.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbott Laboratories is 39,830MM, a decrease of 0.98%. The projected annual non-GAAP EPS is 4.45.
For more in-depth coverage of Abbott Laboratories, view the free, crowd-sourced company research report on Finpedia.
Abbott Laboratories Declares $0.51 Dividend
On June 9, 2023 the company declared a regular quarterly dividend of $0.51 per share ($2.04 annualized). Shareholders of record as of July 14, 2023 will receive the payment on August 15, 2023. Previously, the company paid $0.51 per share.
At the current share price of $114.62 / share, the stock's dividend yield is 1.78%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.62%, the lowest has been 1.26%, and the highest has been 2.29%. The standard deviation of yields is 0.19 (n=236).
The current dividend yield is 0.88 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.69. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.42%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 3886 funds or institutions reporting positions in Abbott Laboratories. This is a decrease of 43 owner(s) or 1.09% in the last quarter. Average portfolio weight of all funds dedicated to ABT is 0.56%, an increase of 14.17%. Total shares owned by institutions decreased in the last three months by 1.27% to 1,494,485K shares.
The put/call ratio of ABT is 0.94, indicating a bullish outlook.
What are Other Shareholders Doing?
Capital Research Global Investors holds 76,405K shares representing 4.39% ownership of the company. In it's prior filing, the firm reported owning 76,785K shares, representing a decrease of 0.50%. The firm decreased its portfolio allocation in ABT by 13.34% over the last quarter.
Capital International Investors holds 56,431K shares representing 3.25% ownership of the company. In it's prior filing, the firm reported owning 53,026K shares, representing an increase of 6.03%. The firm decreased its portfolio allocation in ABT by 5.95% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 53,806K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 53,002K shares, representing an increase of 1.49%. The firm decreased its portfolio allocation in ABT by 13.54% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 40,685K shares representing 2.34% ownership of the company. In it's prior filing, the firm reported owning 40,307K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in ABT by 13.66% over the last quarter.
Geode Capital Management holds 31,197K shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 30,599K shares, representing an increase of 1.92%. The firm decreased its portfolio allocation in ABT by 13.03% over the last quarter.
Abbott Laboratories Background Information
(This description is provided by the company.)
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Its 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 109,000 colleagues serve people in more than 160 countries.
Additional reading:
-- more --
Abbott Laboratories Non-Employee Directors' Fee Plan, as amended and restated.
Statement of Eligibility of U.S. Bank Trust Company, National Association on Form T-1.
-- more --
By-Laws of Abbott Laboratories, as amended and restated, effective April 28, 2023.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fintel reports that on July 24, 2023, Barclays maintained coverage of Abbott Laboratories (NYSE:ABT) with a Overweight recommendation. Average portfolio weight of all funds dedicated to ABT is 0.56%, an increase of 14.17%. The put/call ratio of ABT is 0.94, indicating a bullish outlook. | Fintel reports that on July 24, 2023, Barclays maintained coverage of Abbott Laboratories (NYSE:ABT) with a Overweight recommendation. Average portfolio weight of all funds dedicated to ABT is 0.56%, an increase of 14.17%. The put/call ratio of ABT is 0.94, indicating a bullish outlook. | Fintel reports that on July 24, 2023, Barclays maintained coverage of Abbott Laboratories (NYSE:ABT) with a Overweight recommendation. Average portfolio weight of all funds dedicated to ABT is 0.56%, an increase of 14.17%. The put/call ratio of ABT is 0.94, indicating a bullish outlook. | Fintel reports that on July 24, 2023, Barclays maintained coverage of Abbott Laboratories (NYSE:ABT) with a Overweight recommendation. Average portfolio weight of all funds dedicated to ABT is 0.56%, an increase of 14.17%. The put/call ratio of ABT is 0.94, indicating a bullish outlook. |
30881.0 | 2023-07-24 00:00:00 UTC | 3 Ultrareliable Dividend Stocks to Buy and Hold for Decades | ABT | https://www.nasdaq.com/articles/3-ultrareliable-dividend-stocks-to-buy-and-hold-for-decades | nan | nan | If you're looking to build a strong stream of passive income with dividend stocks, there are two ways to go about it. You could aim for stocks that offer a high yield upfront, but dividend payers generally don't offer high yields unless investors are worried about their ability to continue raising their payouts.
Image source: Getty Images.
The stocks on this list take a longer-term approach to income stream building. Although they offer a lower yield upfront, investors can feel confident about steady gains for many years to come. All three of these stocks have decades of consecutive annual dividend raises under their belts.
Johnson & Johnson: A 2.8% yield
Johnson & Johnson (NYSE: JNJ), or J&J as it's more commonly known, is famous for century-old consumer health brands. Since it spun off its consumer health division into a new company called Kenvue earlier this year, its operations are limited to pharmaceuticals and medical technology.
A more agile J&J is good news for investors seeking dividend growth. The company's slimmed-down operation recently reported second-quarter earnings that rose 8.9% year over year. That's especially impressive when you consider that second-quarter pharmaceutical sales were affected by rapidly declining COVID-19 vaccine revenue.
Investors looking for reliable dividend growth will have a hard time beating J&J. This April, it raised its payout for the 61st year in a row. Now that this is purely a med-tech and pharmaceutical business, the next few years of dividend growth could be its fastest in decades.
Medtronic: A 3.1% yield
Medtronic (NYSE: MDT) is the world's largest manufacturer of medical devices, making run-of-the-mill products you can find in any hospital room. Economies of scale make the sale of bulk devices profitable at prices few of its competitors are large enough to match.
For decades, Medtronic has funneled profits from bulk device sales into the development of new technology that drives even more profit growth. This strategy has allowed it to raise its dividend at an annual rate of 9% over the past decade, and it's raised that payout for 46 consecutive years.
In June, Medtronic highlighted clinical trial data that could drive sales of its MiniMed insulin pump system. Its proprietary meal detection technology helped patients with diabetes maintain ideal blood-sugar concentrations with less effort than usual.
Abbott Laboratories: A 1.8% yield
Abbott Laboratories (NYSE: ABT) offers investors a less-than-thrilling yield at the moment, but it's rising fast. The company has raised its payout by an outstanding 82% over the past five years.
Few companies are more reliable when it comes to raising their dividends. Abbott's payout has grown for 51 consecutive years.
In addition to the leading baby formula brands, Abbott sells next-generation medical devices such as the FreeStyle Libre brand of constant blood glucose monitors (CGMs). The latest CGM from Abbott, the FreeStyle Libre 3, is about the size of two pennies stacked on top of each other, but it still monitors blood sugar throughout the day.
Freestyle Libre devices aren't cheap, but they're a lot less expensive than the hospitalizations that become necessary when patients' blood sugar gets too high or too low. Health insurance benefits providers eager to save on soaring diabetes-related expenses drove Freestyle Libre sales up 23% year over year to an annualized $5.2 billion in the second quarter.
Abbott investors can look forward to more innovation-driven gains in the years ahead. In June, the FDA approved Aveir, the world's first dual-chamber leadless pacemaker.
Abbott Laboratories stock is trading for 25.3 times forward-looking earnings estimates at the moment. This seems like an insane multiple to pay for a company that just reported a 15% year-over-year drop in top-line sales. Before turning your back on this stock, though, you should know that declining COVID-19 test sales were responsible for the loss.
Now that the worst testing revenue losses are over, strong growth on the back of new medical devices seems likely. Buying some shares of this stock now and holding them for the long run looks like the right move to make for extra-cautious investors.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories: A 1.8% yield Abbott Laboratories (NYSE: ABT) offers investors a less-than-thrilling yield at the moment, but it's rising fast. Since it spun off its consumer health division into a new company called Kenvue earlier this year, its operations are limited to pharmaceuticals and medical technology. Its proprietary meal detection technology helped patients with diabetes maintain ideal blood-sugar concentrations with less effort than usual. | Abbott Laboratories: A 1.8% yield Abbott Laboratories (NYSE: ABT) offers investors a less-than-thrilling yield at the moment, but it's rising fast. You could aim for stocks that offer a high yield upfront, but dividend payers generally don't offer high yields unless investors are worried about their ability to continue raising their payouts. Johnson & Johnson: A 2.8% yield Johnson & Johnson (NYSE: JNJ), or J&J as it's more commonly known, is famous for century-old consumer health brands. | Abbott Laboratories: A 1.8% yield Abbott Laboratories (NYSE: ABT) offers investors a less-than-thrilling yield at the moment, but it's rising fast. You could aim for stocks that offer a high yield upfront, but dividend payers generally don't offer high yields unless investors are worried about their ability to continue raising their payouts. 10 stocks we like better than Johnson & Johnson When our analyst team has a stock tip, it can pay to listen. | Abbott Laboratories: A 1.8% yield Abbott Laboratories (NYSE: ABT) offers investors a less-than-thrilling yield at the moment, but it's rising fast. For decades, Medtronic has funneled profits from bulk device sales into the development of new technology that drives even more profit growth. Freestyle Libre devices aren't cheap, but they're a lot less expensive than the hospitalizations that become necessary when patients' blood sugar gets too high or too low. |
30882.0 | 2023-07-24 00:00:00 UTC | Peter Lynch Detailed Fundamental Analysis - ABT | ABT | https://www.nasdaq.com/articles/peter-lynch-detailed-fundamental-analysis-abt-0 | nan | nan | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating using this strategy is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL
Detailed Analysis of ABBOTT LABORATORIES
ABT Guru Analysis
ABT Fundamental Analysis
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About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. ABBOTT LABORATORIES (ABT) is a large-cap growth stock in the Medical Equipment & Supplies industry. | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. | Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). | Below is Validea's guru fundamental report for ABBOTT LABORATORIES (ABT). Of the 22 guru strategies we follow, ABT rates highest using our P/E/Growth Investor model based on the published strategy of Peter Lynch. Detailed Analysis of ABBOTT LABORATORIES ABT Guru Analysis ABT Fundamental Analysis More Information on Peter Lynch Peter Lynch Portfolio Top Peter Lynch Stocks About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. |
30883.0 | 2023-07-22 00:00:00 UTC | Wolfe Research Upgrades Abbott Laboratories (ABT) | ABT | https://www.nasdaq.com/articles/wolfe-research-upgrades-abbott-laboratories-abt | nan | nan | Fintel reports that on July 21, 2023, Wolfe Research upgraded their outlook for Abbott Laboratories (NYSE:ABT) from Underperform to Peer Perform .
Analyst Price Forecast Suggests 10.58% Upside
As of July 5, 2023, the average one-year price target for Abbott Laboratories is 126.38. The forecasts range from a low of 104.03 to a high of $151.20. The average price target represents an increase of 10.58% from its latest reported closing price of 114.29.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Abbott Laboratories is 39,830MM, a decrease of 0.98%. The projected annual non-GAAP EPS is 4.45.
For more in-depth coverage of Abbott Laboratories, view the free, crowd-sourced company research report on Finpedia.
Abbott Laboratories Declares $0.51 Dividend
On June 9, 2023 the company declared a regular quarterly dividend of $0.51 per share ($2.04 annualized). Shareholders of record as of July 14, 2023 will receive the payment on August 15, 2023. Previously, the company paid $0.51 per share.
At the current share price of $114.29 / share, the stock's dividend yield is 1.78%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.62%, the lowest has been 1.26%, and the highest has been 2.29%. The standard deviation of yields is 0.19 (n=236).
The current dividend yield is 0.91 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.69. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.42%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 3888 funds or institutions reporting positions in Abbott Laboratories. This is a decrease of 40 owner(s) or 1.02% in the last quarter. Average portfolio weight of all funds dedicated to ABT is 0.57%, an increase of 15.92%. Total shares owned by institutions increased in the last three months by 137.32% to 3,593,933K shares.
The put/call ratio of ABT is 0.96, indicating a bullish outlook.
What are Other Shareholders Doing?
Bank Julius Baer & Co. Ltd, Zurich holds 2,101,556K shares representing 120.85% ownership of the company. In it's prior filing, the firm reported owning 2,142K shares, representing an increase of 99.90%. The firm decreased its portfolio allocation in ABT by 0.13% over the last quarter.
Capital Research Global Investors holds 76,405K shares representing 4.39% ownership of the company. In it's prior filing, the firm reported owning 76,785K shares, representing a decrease of 0.50%. The firm decreased its portfolio allocation in ABT by 13.34% over the last quarter.
Capital International Investors holds 56,431K shares representing 3.25% ownership of the company. In it's prior filing, the firm reported owning 53,026K shares, representing an increase of 6.03%. The firm decreased its portfolio allocation in ABT by 5.95% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 53,806K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 53,002K shares, representing an increase of 1.49%. The firm decreased its portfolio allocation in ABT by 13.54% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 40,685K shares representing 2.34% ownership of the company. In it's prior filing, the firm reported owning 40,307K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in ABT by 13.66% over the last quarter.
Abbott Laboratories Background Information
(This description is provided by the company.)
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Its 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 109,000 colleagues serve people in more than 160 countries.
Additional reading:
-- more --
Abbott Laboratories Non-Employee Directors' Fee Plan, as amended and restated.
Statement of Eligibility of U.S. Bank Trust Company, National Association on Form T-1.
-- more --
By-Laws of Abbott Laboratories, as amended and restated, effective April 28, 2023.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fintel reports that on July 21, 2023, Wolfe Research upgraded their outlook for Abbott Laboratories (NYSE:ABT) from Underperform to Peer Perform . Average portfolio weight of all funds dedicated to ABT is 0.57%, an increase of 15.92%. The put/call ratio of ABT is 0.96, indicating a bullish outlook. | Fintel reports that on July 21, 2023, Wolfe Research upgraded their outlook for Abbott Laboratories (NYSE:ABT) from Underperform to Peer Perform . Average portfolio weight of all funds dedicated to ABT is 0.57%, an increase of 15.92%. The put/call ratio of ABT is 0.96, indicating a bullish outlook. | Fintel reports that on July 21, 2023, Wolfe Research upgraded their outlook for Abbott Laboratories (NYSE:ABT) from Underperform to Peer Perform . Average portfolio weight of all funds dedicated to ABT is 0.57%, an increase of 15.92%. The put/call ratio of ABT is 0.96, indicating a bullish outlook. | Fintel reports that on July 21, 2023, Wolfe Research upgraded their outlook for Abbott Laboratories (NYSE:ABT) from Underperform to Peer Perform . Average portfolio weight of all funds dedicated to ABT is 0.57%, an increase of 15.92%. The put/call ratio of ABT is 0.96, indicating a bullish outlook. |
30884.0 | 2023-07-21 00:00:00 UTC | Is ACADIA Pharmaceuticals (ACAD) Stock Outpacing Its Medical Peers This Year? | ABT | https://www.nasdaq.com/articles/is-acadia-pharmaceuticals-acad-stock-outpacing-its-medical-peers-this-year | nan | nan | For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Acadia Pharmaceuticals (ACAD) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.
Acadia Pharmaceuticals is a member of our Medical group, which includes 1119 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Acadia Pharmaceuticals is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ACAD's full-year earnings has moved 46.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ACAD has moved about 96.4% on a year-to-date basis. Meanwhile, stocks in the Medical group have lost about 0.6% on average. This means that Acadia Pharmaceuticals is performing better than its sector in terms of year-to-date returns.
Another stock in the Medical sector, Abbott (ABT), has outperformed the sector so far this year. The stock's year-to-date return is 1.9%.
In Abbott's case, the consensus EPS estimate for the current year increased 0.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Acadia Pharmaceuticals is a member of the Medical - Biomedical and Genetics industry, which includes 537 individual companies and currently sits at #119 in the Zacks Industry Rank. Stocks in this group have lost about 7.8% so far this year, so ACAD is performing better this group in terms of year-to-date returns.
On the other hand, Abbott belongs to the Medical - Products industry. This 99-stock industry is currently ranked #116. The industry has moved +7.5% year to date.
Investors interested in the Medical sector may want to keep a close eye on Acadia Pharmaceuticals and Abbott as they attempt to continue their solid performance.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another stock in the Medical sector, Abbott (ABT), has outperformed the sector so far this year. Click to get this free report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals is a member of our Medical group, which includes 1119 different companies and currently sits at #8 in the Zacks Sector Rank. | Click to get this free report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock in the Medical sector, Abbott (ABT), has outperformed the sector so far this year. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. | Click to get this free report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock in the Medical sector, Abbott (ABT), has outperformed the sector so far this year. Acadia Pharmaceuticals is a member of our Medical group, which includes 1119 different companies and currently sits at #8 in the Zacks Sector Rank. | Another stock in the Medical sector, Abbott (ABT), has outperformed the sector so far this year. Click to get this free report ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report Abbott Laboratories (ABT) : Free Stock Analysis Report To read this article on Zacks.com click here. Acadia Pharmaceuticals is a member of our Medical group, which includes 1119 different companies and currently sits at #8 in the Zacks Sector Rank. |
30885.0 | 2023-07-21 00:00:00 UTC | Company News for Jul 21, 2023 | ABT | https://www.nasdaq.com/articles/company-news-for-jul-21-2023 | nan | nan | Kinder Morgan, Inc.’s (KMI) shares rose 2% after the company reported second-quarter 2023 adjusted earnings per share of $0.24, outpacing the Zacks Consensus Estimate of $0.23
Shares of United Airlines Holdings Inc. (UAL) advanced 3.2% after reporting second-quarter 2023 adjusted earnings per share of $5.03, beating the Zacks Consensus Estimate of $3.99.
Shares of Abbott Laboratories (ABT) climbed 4.2% after posting second-quarter 2023 adjusted earnings per share of $1.08, exceeding the Zacks Consensus Estimate of $1.04.
International Business Machines Corp.’s (IBM) shares surged 2.1% after the company posted second-quarter 2023 adjusted earnings per share of $2.18, surpassing the Zacks Consensus Estimate of $2.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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Abbott Laboratories (ABT) : Free Stock Analysis Report
International Business Machines Corporation (IBM) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of Abbott Laboratories (ABT) climbed 4.2% after posting second-quarter 2023 adjusted earnings per share of $1.08, exceeding the Zacks Consensus Estimate of $1.04. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report To read this article on Zacks.com click here. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Abbott Laboratories (ABT) climbed 4.2% after posting second-quarter 2023 adjusted earnings per share of $1.08, exceeding the Zacks Consensus Estimate of $1.04. Kinder Morgan, Inc.’s (KMI) shares rose 2% after the company reported second-quarter 2023 adjusted earnings per share of $0.24, outpacing the Zacks Consensus Estimate of $0.23 Shares of United Airlines Holdings Inc. (UAL) advanced 3.2% after reporting second-quarter 2023 adjusted earnings per share of $5.03, beating the Zacks Consensus Estimate of $3.99. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Abbott Laboratories (ABT) climbed 4.2% after posting second-quarter 2023 adjusted earnings per share of $1.08, exceeding the Zacks Consensus Estimate of $1.04. Kinder Morgan, Inc.’s (KMI) shares rose 2% after the company reported second-quarter 2023 adjusted earnings per share of $0.24, outpacing the Zacks Consensus Estimate of $0.23 Shares of United Airlines Holdings Inc. (UAL) advanced 3.2% after reporting second-quarter 2023 adjusted earnings per share of $5.03, beating the Zacks Consensus Estimate of $3.99. | Shares of Abbott Laboratories (ABT) climbed 4.2% after posting second-quarter 2023 adjusted earnings per share of $1.08, exceeding the Zacks Consensus Estimate of $1.04. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report To read this article on Zacks.com click here. Kinder Morgan, Inc.’s (KMI) shares rose 2% after the company reported second-quarter 2023 adjusted earnings per share of $0.24, outpacing the Zacks Consensus Estimate of $0.23 Shares of United Airlines Holdings Inc. (UAL) advanced 3.2% after reporting second-quarter 2023 adjusted earnings per share of $5.03, beating the Zacks Consensus Estimate of $3.99. |
30886.0 | 2023-07-20 00:00:00 UTC | Health Care Sector Update for 07/20/2023: ABT, JNJ, VIR, GOSS | ABT | https://www.nasdaq.com/articles/health-care-sector-update-for-07-20-2023%3A-abt-jnj-vir-goss | nan | nan | Health care stocks were higher late Thursday, with the NYSE Health Care Index rising 2% and the Health Care Select Sector SPDR Fund (XLV) up 1.7%.
The iShares Biotechnology ETF (IBB) was 0.1% softer.
In company news, Abbott Laboratories (ABT) shares rose 4.2% after the company posted better-than-expected Q2 results.
Johnson & Johnson's (JNJ) shares were up 6% after the firm posted higher fiscal Q2 results and raised its fiscal 2023 outlook.
Vir Biotechnology (VIR) shares plunged nearly 45% after the company said Thursday that a phase 2 trial assessing VIR-2482 to prevent influenza A illness didn't meet its primary and secondary efficacy endpoints.
Gossamer Bio (GOSS) dropped 32% after the company said it plans to sell almost 129.9 million shares and accompanying warrants in a private placement to some investors to raise about $212 million in gross proceeds.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In company news, Abbott Laboratories (ABT) shares rose 4.2% after the company posted better-than-expected Q2 results. Johnson & Johnson's (JNJ) shares were up 6% after the firm posted higher fiscal Q2 results and raised its fiscal 2023 outlook. Vir Biotechnology (VIR) shares plunged nearly 45% after the company said Thursday that a phase 2 trial assessing VIR-2482 to prevent influenza A illness didn't meet its primary and secondary efficacy endpoints. | In company news, Abbott Laboratories (ABT) shares rose 4.2% after the company posted better-than-expected Q2 results. Health care stocks were higher late Thursday, with the NYSE Health Care Index rising 2% and the Health Care Select Sector SPDR Fund (XLV) up 1.7%. Johnson & Johnson's (JNJ) shares were up 6% after the firm posted higher fiscal Q2 results and raised its fiscal 2023 outlook. | In company news, Abbott Laboratories (ABT) shares rose 4.2% after the company posted better-than-expected Q2 results. Health care stocks were higher late Thursday, with the NYSE Health Care Index rising 2% and the Health Care Select Sector SPDR Fund (XLV) up 1.7%. Vir Biotechnology (VIR) shares plunged nearly 45% after the company said Thursday that a phase 2 trial assessing VIR-2482 to prevent influenza A illness didn't meet its primary and secondary efficacy endpoints. | In company news, Abbott Laboratories (ABT) shares rose 4.2% after the company posted better-than-expected Q2 results. Health care stocks were higher late Thursday, with the NYSE Health Care Index rising 2% and the Health Care Select Sector SPDR Fund (XLV) up 1.7%. The iShares Biotechnology ETF (IBB) was 0.1% softer. |
30887.0 | 2023-07-20 00:00:00 UTC | Intuitive Surgical beats profit, revenue estimates | ABT | https://www.nasdaq.com/articles/intuitive-surgical-beats-profit-revenue-estimates | nan | nan | July 20 (Reuters) - Intuitive Surgical Inc ISRG.O beat Wall Street estimates for quarterly sales and profit on Thursday, boosted by a rise in total procedures volume of its surgical robot da Vinci.
Shares of the company, however, fell about 6% to $328, after the bell, due to higher investor expectations.
"This is a very typical ISRG quarter where they beat the Street on procedures and systems but expectations on the buyside were simply higher than that," said BTIG analyst Ryan Zimmerman.
Medical device makers expect a spurt in demand for elective procedures this year as pandemic-driven restrictions as well as hospital staffing shortages have eased, helping to lift up its sales.
Larger peer Abbott Laboratories ABT.N earlier on Thursday also reported a better-than-expected quarter as a rebound in surgical procedure volumes drove demand for medical devices despite high inflation-driven costs.
Intuitive reported second-quarter sales of $1.76 billion, compared to analysts' estimates of $1.74 billion, according to IBES Refinitiv data.
Commentary from health insurers such as UnitedHealth Group UNH.N has been positive for some elective procedure, mostly in the orthopedics arena - knees and hip surgery - and Medicare enrollees are coming back to the hospitals as well, which is a positive for Intuitive, Zimmerman told Reuters.
A market leader for surgical robots, Intuitive's worldwide da Vinci procedure volumes rose about 22% from a year earlier, benefiting from higher patient admissions as they catch up with treatment that was delayed during the pandemic.
Excluding items, Intuitive earned $1.42 per share in the three months ended June 30, above analysts' average estimate of $1.33 per share.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shailesh Kuber)
((Sriparna.Roy@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Larger peer Abbott Laboratories ABT.N earlier on Thursday also reported a better-than-expected quarter as a rebound in surgical procedure volumes drove demand for medical devices despite high inflation-driven costs. Medical device makers expect a spurt in demand for elective procedures this year as pandemic-driven restrictions as well as hospital staffing shortages have eased, helping to lift up its sales. A market leader for surgical robots, Intuitive's worldwide da Vinci procedure volumes rose about 22% from a year earlier, benefiting from higher patient admissions as they catch up with treatment that was delayed during the pandemic. | Larger peer Abbott Laboratories ABT.N earlier on Thursday also reported a better-than-expected quarter as a rebound in surgical procedure volumes drove demand for medical devices despite high inflation-driven costs. July 20 (Reuters) - Intuitive Surgical Inc ISRG.O beat Wall Street estimates for quarterly sales and profit on Thursday, boosted by a rise in total procedures volume of its surgical robot da Vinci. A market leader for surgical robots, Intuitive's worldwide da Vinci procedure volumes rose about 22% from a year earlier, benefiting from higher patient admissions as they catch up with treatment that was delayed during the pandemic. | Larger peer Abbott Laboratories ABT.N earlier on Thursday also reported a better-than-expected quarter as a rebound in surgical procedure volumes drove demand for medical devices despite high inflation-driven costs. July 20 (Reuters) - Intuitive Surgical Inc ISRG.O beat Wall Street estimates for quarterly sales and profit on Thursday, boosted by a rise in total procedures volume of its surgical robot da Vinci. A market leader for surgical robots, Intuitive's worldwide da Vinci procedure volumes rose about 22% from a year earlier, benefiting from higher patient admissions as they catch up with treatment that was delayed during the pandemic. | Larger peer Abbott Laboratories ABT.N earlier on Thursday also reported a better-than-expected quarter as a rebound in surgical procedure volumes drove demand for medical devices despite high inflation-driven costs. July 20 (Reuters) - Intuitive Surgical Inc ISRG.O beat Wall Street estimates for quarterly sales and profit on Thursday, boosted by a rise in total procedures volume of its surgical robot da Vinci. Shares of the company, however, fell about 6% to $328, after the bell, due to higher investor expectations. |
30888.0 | 2023-07-20 00:00:00 UTC | Broader Market Falls on Disappointing Tech Earnings from Tesla and Netflix | ABT | https://www.nasdaq.com/articles/broader-market-falls-on-disappointing-tech-earnings-from-tesla-and-netflix | nan | nan | What you need to know…
The S&P 500 Index ($SPX) (SPY) Thursday closed down -0.68%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.47%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -2.28%.
Stocks settled mostly lower Thursday, although the Dow Jones Industrials bucked the trend and climbed to a 15-month high. A slump in Netflix and Tesla Thursday weighed on technology stocks and the broader market. Netflix fell more than -8% after projecting weaker-than-expected Q3 revenue, and Tesla dropped more than -9% after reporting lower-than-expected Q3 gross margins. A jump in bond yields Thursday also weighed on stocks on signs of U.S. labor market strength after weekly jobless claims unexpectedly fell to a 2-month low.
By contrast, better-than-expected quarterly earnings results from Johnson & Johnson and International Business Machines pushed the Dow Jones Industrials higher.
U.S. weekly initial unemployment claims unexpectedly fell -9,000 to a 2-month low of 228,000, showing a stronger labor market than expectations of an increase to 240,000.
The U.S. July Philadelphia Fed business outlook survey rose +0.2 to -13.5, weaker than expectations of -10.0.
U.S. June existing home sales fell -3.3% m/m to a 5-month low of 4.16 million, weaker than expectations of 4.20 million.
U.S. June leading indicators fell-0.7% m/m, weaker than expectations of -0.6% m/m.
The markets are discounting the odds at 96% for a +25 bp rate hike at the next FOMC meeting on July 25-26. The markets are anticipating a peak funds rate of 5.42% by November, which is +34 bp higher than the current effective federal funds rate of 5.08%.
Global bond yields Thursday moved higher. The 10-year T-note yield rose +10.4 bp to 3.852%. The 10-year German bund yield rose +5.2 bp to 2.490%. The 10-year U.K. Gilt yield rose +6.3 bp to 4.277%.
Overseas stock markets Thursday settled mixed. The Euro Stoxx 50 closed up +0.26%. China’s Shanghai Composite Index today closed down -0.92%. Japan’s Nikkei Stock Index closed down -1.23%.
Today’s stock movers…
Discover Financial Services (DFS) closed down more than -15% to lead losers in the S&P 500 after it said it would suspend share buybacks and that it was in discussion with regulators over how it misclassified some of its credit cards.
Tesla (TSLA) closed down more than -9% to lead losers in the Nasdaq 100 after reporting Q3 gross margins of 18.2%, below the consensus of 18.8%, and forecast full-year vehicle production of 1.80 million vehicles, below the consensus of 1.88 million.
Netflix (NFLX) closed down more than -8% after reporting Q2 revenue of $8.19 billion, weaker than the consensus of $8.30 billion and forecast Q3 revenue of $8.50 billion, below the consensus of $8.67 billion.
Equifax (EFX) closed down more than -8% after reporting Q2 operating revenue of $1.32 billion, below the consensus of $1.33 billion, and forecast Q3 revenue of $1.32 billion-$1.34 billion, weaker than the consensus of $1.35 billion.
Intel (INTC) closed down more than -3% to lead losers in the Dow Jones Industrials after Wolfe Research initiated coverage on the stock with a recommendation of underperform and a price target of $27.
Semiconductor stocks were under pressure Thursday after Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, cut its full-year revenue outlook and projected a 10% fall in sales this year, versus previous guidance for a single-digit decline. As a result, Applied Materials (AMAT), Advanced Micro Devices (AMD), and ASML Holding NV (ASML) closed down more than -5%. Also, KLA Corp (KLAC) and ON Semiconductor (ON) closed down more than -4%. In addition, Globalfoundries (GFS), Microchip Technology (MCHP), Lam Research (LRCX), and NXP Semiconductors NV (NXPI) closed down more than -3%.
Genuine Parts (GPC) closed down more than -7% after reporting Q2 net sales of $5.92 billion, weaker than the consensus of $5.93 billion.
Crown Castle (CCI) closed down more than -5% after cutting its full-year FFO estimate to $3.30 billion-$3.33 billion from a previous estimate of $3.35 billion-$3.40 billion, below the consensus of $3.36 billion.
Zions Bancorp (ZION) closed up more than +9% to lead gainers in the S&P 500 after reporting Q2 total deposits of $74.32 billion, well above the consensus of $68.49 billion.
Johnson & Johnson (JNJ) closed up more than +6% to lead gainers in the Dow Jones Industrials after reporting Q2 sales of $25.53 billion, better than the consensus of $24.67 billion, and raising its full-year sales forecast to $98.9 billion-$99.8 billion from a prior view of $97.9 billion-$98.9 billion.
Abbott Laboratories (ABT) closed up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion.
United Airlines Holdings (UAL) closed up more than +3% after reporting Q2 adjusted EPS of $5.03, better than the consensus of $3.99, and raised its full-year adjusted EPS forecast to $11-$12 from $10-$12, stronger than the consensus of $9.80.
Catalent (CTLT) closed up more than +2% after Bloomberg News reported that Elliot Investment Management had built a significant stake in the company and is pushing for changes to the company’s board of directors.
International Business Machines (IBM) closed up more than +2% after forecasting full-year revenue up +3% to +5%, better than the consensus of +2.89%.
Across the markets…
September 10-year T-notes (ZNU23) Thursday closed down -27.5 ticks, and the 10-year T-note yield rose +10.4 bp to 3.852%. Sep T-notes Thursday dropped to a 1-week low, and the 10-year T-note yield climbed to a 1-week high of 3.870%. An unexpected drop in U.S. weekly jobless claims to a 2-month low is a hawkish factor for Fed policy and weighed on T-note prices. Also, an increase in inflation expectations undercut T-notes after the 10-year breakeven inflation rate jumped to a 3-month high Thursday at 2.319%.
Weaker-than-expected U.S. economic news Thursday supported T-notes after Jun existing home sales fell more than expected to a 5-month low and after the Jul Philadelphia Fed business outlook survey rose less than expected. Also, weakness in stocks Thursday fueled some safe-haven demand for T-notes.
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) closed up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion. A jump in bond yields Thursday also weighed on stocks on signs of U.S. labor market strength after weekly jobless claims unexpectedly fell to a 2-month low. Today’s stock movers… Discover Financial Services (DFS) closed down more than -15% to lead losers in the S&P 500 after it said it would suspend share buybacks and that it was in discussion with regulators over how it misclassified some of its credit cards. | Abbott Laboratories (ABT) closed up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion. A jump in bond yields Thursday also weighed on stocks on signs of U.S. labor market strength after weekly jobless claims unexpectedly fell to a 2-month low. By contrast, better-than-expected quarterly earnings results from Johnson & Johnson and International Business Machines pushed the Dow Jones Industrials higher. | Abbott Laboratories (ABT) closed up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion. Netflix (NFLX) closed down more than -8% after reporting Q2 revenue of $8.19 billion, weaker than the consensus of $8.30 billion and forecast Q3 revenue of $8.50 billion, below the consensus of $8.67 billion. Equifax (EFX) closed down more than -8% after reporting Q2 operating revenue of $1.32 billion, below the consensus of $1.33 billion, and forecast Q3 revenue of $1.32 billion-$1.34 billion, weaker than the consensus of $1.35 billion. | Abbott Laboratories (ABT) closed up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion. Johnson & Johnson (JNJ) closed up more than +6% to lead gainers in the Dow Jones Industrials after reporting Q2 sales of $25.53 billion, better than the consensus of $24.67 billion, and raising its full-year sales forecast to $98.9 billion-$99.8 billion from a prior view of $97.9 billion-$98.9 billion. Sep T-notes Thursday dropped to a 1-week low, and the 10-year T-note yield climbed to a 1-week high of 3.870%. |
30889.0 | 2023-07-20 00:00:00 UTC | Abbott (ABT) Q2 Earnings & Revenues Beat Estimates, Down Y/Y | ABT | https://www.nasdaq.com/articles/abbott-abt-q2-earnings-revenues-beat-estimates-down-y-y | nan | nan | Abbott Laboratories ABT reported second-quarter 2023 adjusted earnings of $1.08 per share, which topped the Zacks Consensus Estimate by 3.8%. However, the adjusted figure declined from the prior-year quarter’s levels by 24.5%. The quarter’s adjustments include 30 cents of certain non-recurring items.
GAAP EPS came in at 78 cents, which decreased 31.6% year over year.
Second-quarter worldwide sales of $9.98 billion were down 11.4% year over year on a reported basis. The top line exceeded the Zacks Consensus Estimate by 2.9%. On an organic basis (excluding the impact of foreign exchange, the Cardiovascular Systems acquisition, the impact of business exit and the impact of COVID-19 testing sales), sales rose 11.5% year over year in the reported quarter.
Q2 Results in Detail
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.
In the second quarter, Established Pharmaceuticals’ product sales increased 5.2% on a reported basis (up 12.6% on an organic basis) to $1.29 billion. This figure compares with our model’s segmental projection of $1.18 billion for the second quarter.
Organic sales in key emerging markets improved 4.6% year over year. This was led by growth in several geographies and therapeutic areas, including gastroenterology, women's health, and central nervous system/pain management.
Abbott Laboratories Price, Consensus and EPS Surprise
Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote
The Medical Devices segment’s sales rose 13.5% year over year on a reported basis (up 14.2% on an organic basis) at $4.29 billion. This figure exceeded our segmental projection of $3.48 billion for the second quarter.
Sales growth was led by double-digit organic growth in Diabetes Care, Electrophysiology, Structural Heart and Neuromodulation. Several recently launched products and new indications contributed to the strong performance, including Amplatzer Amulet, Navitor, TriClip and Aveir.
The Diabetes Care division reported organic sales growth of 21.4% year over year, led by FreeStyle Libre, which contributed $1.3 billion in revenues in the reported quarter. Structural Heart sales rose 14.8%, and Heart Failure sales improved 9.9% year over year organically.
The Vascular division recorded organic sales growth of 5% in the quarter under review. The Electrophysiology, Rhythm Management and Neuromodulation divisions recorded organic growth of 16.9%, 8.2% and 16.2%, respectively, in the quarter under review.
Nutrition sales rose 6.3% year over year on a reported basis (up 9.9% on an organic basis) to $2.08 billion. This figure compares with our segmental projection of $1.75 billion for the second quarter.
Pediatric Nutrition sales registered 14.5% growth on an organic basis. Adult Nutrition sales improved 6% organically. Per the company, Adult Nutrition sales benefited from the strong global sales performance of Abbott's complete and balanced nutrition brand, Ensure.
Diagnostics sales were down 46% year over year on a reported basis (down 44.7% on an organic basis) to $2.32 billion. For this segment, we had projected revenues of $3.18 billion for the second quarter.
Core Laboratory Diagnostics sales were up 9.5% organically. Molecular Diagnostics declined 32.1% on an organic basis. Rapid Diagnostics sales dropped 72.3% on an organic basis, whereas Point of Care Diagnostics sales rose 2.4% organically.
Margins
The gross profit in the reported quarter fell 13.1% year over year to $5.50 billion. The gross margin contracted 111 basis points (bps) to 55.1%.
SG&A expenses were down 0.6% year over year to $2.74 billion. Research and development expenses increased 4.5% year over year to $715 million. The company reported an adjusted operating profit of $2.04 billion in the quarter under review, down 29.2% year over year. Also, the adjusted operating margin contracted 517 bps to 20.4%.
2023 Guidance
Abbott maintained its original 2023 EPS guidance, as announced on the first-quarter 2023 earnings call.
Full-year adjusted earnings (excluding specified items of $1.28 per share) are expected in the range of $4.30-$4.50 (unchanged). The Zacks Consensus Estimate for the same is pegged at $4.39.
Abbott projects full-year 2023 organic sales growth, excluding COVID-19 testing-related sales, in the low double digits (from the earlier projection of at least high single digits) and COVID-19 testing-related sales of around $1.3 billion (earlier $1.5 billion).
Our Take
Abbott exited the second quarter of 2023 with better-than-expected earnings and revenues. However, the quarter’s earnings and revenues declined year over year. On a positive note, the company delivered strong growth across its underlying base business.
The Diabetes Care business continued to benefit from the growing sales of its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre. Last month, Abbott’s FreeStyle Libre 2 system marked the first and only continuous glucose monitoring system to receive expanded national reimbursement in France, which will now include all people with diabetes who use insulin.
Within Medical Device, the company registered double-digit organic growth in Diabetes Care, Electrophysiology, Structural Heart and Neuromodulation in the reported quarter. Abbott’s highly-productive pipeline is likely to position well for its growth in the future.
Meanwhile, a significant year-over-year decline in COVID-19 testing-related sales negatively impacted the quarter’s top line.
Zacks Rank and Other Key Picks
Abbott currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Penumbra PEN, Zimmer Biomet ZBH and McKesson MCK.
Penumbra, carrying a Zacks Rank #2, reported a first-quarter 2023 adjusted EPS of 23 cents, beating the Zacks Consensus Estimate by 109.1%. Revenues of $241 million outpaced the consensus estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Penumbra has an estimated earnings growth rate of 64.1% for the next year. PEN’s earnings surpassed estimates in all of the trailing four quarters, the average being 109.4%.
Zimmer Biomet, carrying a Zacks Rank #2, reported a first-quarter 2023 adjusted EPS of $1.89, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $1.83 billion outpaced the consensus estimate by 7.4%.
Zimmer Biomet has an earnings yield of 5.29% against the industry’s -3.20%. ZBH’s earnings surpassed estimates in all the trailing four quarters, the average being 7.4%.
McKesson reported fourth-quarter fiscal 2023 adjusted earnings of $7.19 per share, which beat the Zacks Consensus Estimate by 0.4%. Revenues of $68.91 billion surpassed the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
McKesson has an estimated earnings growth rate of 14.3% for the next year. MCK’s earnings surpassed estimates in three of the trailing four quarters and matched the same in one, the average surprise being 4.5%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories ABT reported second-quarter 2023 adjusted earnings of $1.08 per share, which topped the Zacks Consensus Estimate by 3.8%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report Penumbra, Inc. (PEN) : Free Stock Analysis Report To read this article on Zacks.com click here. Several recently launched products and new indications contributed to the strong performance, including Amplatzer Amulet, Navitor, TriClip and Aveir. | Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report Penumbra, Inc. (PEN) : Free Stock Analysis Report To read this article on Zacks.com click here. Abbott Laboratories ABT reported second-quarter 2023 adjusted earnings of $1.08 per share, which topped the Zacks Consensus Estimate by 3.8%. Abbott Laboratories Price, Consensus and EPS Surprise Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote The Medical Devices segment’s sales rose 13.5% year over year on a reported basis (up 14.2% on an organic basis) at $4.29 billion. | Abbott Laboratories ABT reported second-quarter 2023 adjusted earnings of $1.08 per share, which topped the Zacks Consensus Estimate by 3.8%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report Penumbra, Inc. (PEN) : Free Stock Analysis Report To read this article on Zacks.com click here. On an organic basis (excluding the impact of foreign exchange, the Cardiovascular Systems acquisition, the impact of business exit and the impact of COVID-19 testing sales), sales rose 11.5% year over year in the reported quarter. | Abbott Laboratories ABT reported second-quarter 2023 adjusted earnings of $1.08 per share, which topped the Zacks Consensus Estimate by 3.8%. Click to get this free report Abbott Laboratories (ABT) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Zimmer Biomet Holdings, Inc. (ZBH) : Free Stock Analysis Report Penumbra, Inc. (PEN) : Free Stock Analysis Report To read this article on Zacks.com click here. The Diabetes Care division reported organic sales growth of 21.4% year over year, led by FreeStyle Libre, which contributed $1.3 billion in revenues in the reported quarter. |
30890.0 | 2023-07-20 00:00:00 UTC | Slump in Netflix and Tesla Weighs on Tech Stocks | ABT | https://www.nasdaq.com/articles/slump-in-netflix-and-tesla-weighs-on-tech-stocks | nan | nan | What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.45%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.54%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -1.45%.
Stocks are mostly lower today, although the Dow Jones Industrials bucked the trend and climbed to a 15-month high. A slump in Netflix and Tesla today weighed on technology stocks and the broader market. Netflix fell more than -8% after projecting weaker-than-expected Q3 revenue, and Tesla is down more than -6% after reporting lower-than-expected Q3 gross margins. A jump in bond yields is also weighing on stocks on signs of U.S. labor market strength after weekly jobless claims unexpectedly fell to a 2-month low.
By contrast, better-than-expected quarterly earnings results from Johnson & Johnson and International Business Machines pushed the Dow Jones Industrials higher.
U.S. weekly initial unemployment claims unexpectedly fell -9,000 to a 2-month low of 228,000, showing a stronger labor market than expectations of an increase to 240,000.
The U.S. July Philadelphia Fed business outlook survey rose +0.2 to -13.5, weaker than expectations of -10.0.
U.S. June existing home sales fell -3.3% m/m to a 5-month low of 4.16 million, weaker than expectations of 4.20 million.
U.S. June leading indicators fell-0.7% m/m, weaker than expectations of -0.6% m/m.
The markets are discounting the odds at 96% for a +25 bp rate hike at the next FOMC meeting on July 25-26. The markets are anticipating a peak funds rate of 5.42% by November, which is +34 bp higher than the current effective federal funds rate of 5.08%.
Global bond yields are higher. The 10-year T-note yield is up +9.2 bp at 3.841%. The 10-year German bund yield is up +3.9 bp at 2.477%. The 10-year U.K. Gilt yield is up +3.0 bp at 4.245%.
Overseas stock markets are lower. The Euro Stoxx 50 is down -0.02%. China’s Shanghai Composite Index today closed down -0.92%. Japan’s Nikkei Stock Index closed down -1.23%.
Today’s stock movers…
Discover Financial Services (DFS) is down more than -14% to lead losers in the S&P 500 after it said it would suspend share buybacks and that it was in discussion with regulators over how it misclassified some of its credit cards.
Equifax (EFX) is down more than -9% after reporting Q2 operating revenue of $1.32 billion, below the consensus of $1.33 billion, and forecast Q3 revenue of $1.32 billion-$1.34 billion, weaker than the consensus of $1.35 billion.
Netflix (NFLX) is down more than -8% to lead losers in the Nasdaq 100 after reporting Q2 revenue of $8.19 billion, weaker than the consensus of $8.30 billion, and forecast Q3 revenue of $8.50 billion, below the consensus of $8.67 billion.
Tesla (TSLA) is down more than -6% in pre-market trading after reporting Q3 gross margins of 18.2%, below the consensus of 18.8%, and forecast full-year vehicle production of 1.80 million vehicles, below the consensus of 1.88 million.
Semiconductor stocks are under pressure after Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, cut its full-year revenue outlook and projected a 10% fall in sales this year, versus previous guidance for a single-digit decline. As a result, Applied Materials (AMAT), Advanced Micro Devices (AMD), and ASML Holding NV (ASML) are down more than -3%. Also, KLA Corp (KLAC), Globalfoundries (GFS), Microchip Technology (MCHP), Lam Research (LRCX), ON Semiconductor (ON), and NXP Semiconductors NV (NXPI) are down more than -2%
Genuine Parts (GPC) is down more than -5% after reporting Q2 net sales of $5.92 billion, weaker than the consensus of $5.93 billion.
Crown Castle (CCI) is down more than -5% after cutting its full-year FFO estimate to $3.30 billion-$3.33 billion from a previous estimate of $3.35 billion-$3.40 billion, below the consensus of $3.36 billion.
Zions Bancorp (ZION) is up more than +8% to lead gainers in the S&P 500 after reporting Q2 total deposits of $74.32 billion, well above the consensus of $68.49 billion.
Johnson & Johnson (JNJ) is up more than +5% to lead gainers in the Dow Jones Industrials after reporting Q2 sales of $25.53 billion, better than the consensus of $24.67 billion, and raising its full-year sales forecast to $98.9 billion-$99.8 billion from a prior view of $97.9 billion-$98.9 billion.
MarketAxess Holdings (MKTX) is up more than +5% after reporting Q2 EPS of $1,59, above the consensus of $1.58.
Abbott Laboratories (ABT) is up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion.
Catalent (CTLT) is up more than +3% after Bloomberg News reported that Elliot Investment Management had built a significant stake in the company and is pushing for changes to the company’s board of directors.
International Business Machines (IBM) is up more than +2% after forecasting full-year revenue up +3% to +5%, better than the consensus of +2.89%.
Across the markets…
September 10-year T-notes (ZNU23) today are down -27 ticks, and the 10-year T-note yield is up +9.2 bp at 3.841%. Sep T-notes today dropped to a 1-week low after U.S. weekly jobless claims unexpectedly fell to a 2-month low, a hawkish factor for Fed policy. Also, expectations that the Fed will raise interest rates by +25 bp at next week’s FOMC meeting are weighing on T-note prices.
The dollar index (DXY00) today is up by +0.40%. The dollar today rallied to a 1-week high as bond yields jumped after U.S. weekly initial unemployment claims unexpectedly fell to a 2-month low. Also, a slump in stocks today boosted the liquidity demand for the dollar.
EUR/USD (^EURUSD) today is down by -0.49%. A stronger dollar today has sparked long liquidation in the euro. Also, an easing of price pressures in Germany is dovish for ECB policy and negative for the euro after today’s news showed German June PPI rose at the smallest pace in 2-1/2 years.
The Eurozone July consumer confidence indicator rose +1.0 to a 17-month high of -15.1, stronger than expectations of -15.8.
German June PPI eased to +0.1% y/y from+1.0% y/y in May, the smallest pace of increase in 2-1/2 years.
USD/JPY (^USDJPY) is up by +0.37%. The yen today dropped to a 1-week low against the dollar and is under pressure from higher T-note yields. Also, today’s weaker-than-expected Japan trade news for June is bearish for the yen. Losses in the yen are limited as a slide in global equity markets boosted the safe-haven demand for the yen. Also, an upward revision to Japan’s Jun machine tool orders was bullish for the yen.
Japan trade data was weaker than expected as Jun exports rose +1.5% y/y, weaker than expectations of +2.4% y/y. Also, June imports fell -12.9% y/y, weaker than expectations of -11.3% y/y and the largest decline in 2-3/4 years.
Japan June machine tool orders were revised upward by +0.6 to -21.1% y/y from the initially reported -21.7% y/y.
August gold (GCQ3) today is down -7.2 (-0.36%), and Sep silver (SIU23) is down -0.132 (-0.52%). Precious metals prices this morning gave up an early advance and are moderately lower. Gold fell from a 1-1/2 month high, and silver dropped from a 2-1/4 month high and moved lower as a rally in the dollar today to a 1-week high sparked long liquidation in metals. Also, higher global bond yields today are weighing on metals prices. In addition, the ongoing fund liquidation of gold is weighing on gold as holdings in gold ETFs fell to a 3-1/4 year low on Wednesday. Losses are limited as today’s slide in global equity markets sparked some safe-haven demand for precious metals.
More Stock Market News from Barchart
3 Warren Buffett Dividend Stocks to Buy in July 2023 fuboTV Stock Is Up 75% YTD. Is There Still Room for Upside? Markets Today: Stocks Fall on Disappointing Earnings from Netflix and Tesla A Strategic Move: Selling an AMD Put Option Before Their Earnings Announcement
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (ABT) is up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion. A jump in bond yields is also weighing on stocks on signs of U.S. labor market strength after weekly jobless claims unexpectedly fell to a 2-month low. Today’s stock movers… Discover Financial Services (DFS) is down more than -14% to lead losers in the S&P 500 after it said it would suspend share buybacks and that it was in discussion with regulators over how it misclassified some of its credit cards. | Abbott Laboratories (ABT) is up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion. Johnson & Johnson (JNJ) is up more than +5% to lead gainers in the Dow Jones Industrials after reporting Q2 sales of $25.53 billion, better than the consensus of $24.67 billion, and raising its full-year sales forecast to $98.9 billion-$99.8 billion from a prior view of $97.9 billion-$98.9 billion. The dollar today rallied to a 1-week high as bond yields jumped after U.S. weekly initial unemployment claims unexpectedly fell to a 2-month low. | Abbott Laboratories (ABT) is up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion. Equifax (EFX) is down more than -9% after reporting Q2 operating revenue of $1.32 billion, below the consensus of $1.33 billion, and forecast Q3 revenue of $1.32 billion-$1.34 billion, weaker than the consensus of $1.35 billion. Netflix (NFLX) is down more than -8% to lead losers in the Nasdaq 100 after reporting Q2 revenue of $8.19 billion, weaker than the consensus of $8.30 billion, and forecast Q3 revenue of $8.50 billion, below the consensus of $8.67 billion. | Abbott Laboratories (ABT) is up more than +4% after reporting Q2 net sales of $10.0 billion, better than the consensus of $9.73 billion. Netflix (NFLX) is down more than -8% to lead losers in the Nasdaq 100 after reporting Q2 revenue of $8.19 billion, weaker than the consensus of $8.30 billion, and forecast Q3 revenue of $8.50 billion, below the consensus of $8.67 billion. EUR/USD (^EURUSD) today is down by -0.49%. |
30891.0 | 2023-07-20 00:00:00 UTC | Abbott Laboratories (ABT) Q2 2023 Earnings Call Transcript | ABT | https://www.nasdaq.com/articles/abbott-laboratories-abt-q2-2023-earnings-call-transcript | nan | nan | Image source: The Motley Fool.
Abbott Laboratories (NYSE: ABT)
Q2 2023 Earnings Call
Jul 20, 2023, 9:30 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and thank you for standing by. Welcome to Abbott's second quarter 2023earnings conference call All participants will be able to listen only until the question-and-answer portion of this call. [Operator instructions] This call is being recorded by Abbott.
With the exception of any participant's questions asked, during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott. It cannot be recorded or rebroadcast without Abbott's express written permission. I would now like to introduce Mr. Mike Comilla, vice president, investor relations.
Mike Comilla -- Vice President, Investor Relations
Good morning, and thank you for joining us. With me today are Robert Ford, chairman and chief executive officer; and Bob Funck, executive vice president, finance, and chief financial officer. Robert and Bob will provide opening remarks. Following their comments, we'll take your questions.
Before we get started, some statements made today may be forward-looking for purposes of the Private Securities Litigation Reform Act of 1995, including the expected financial results for 2023. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward statements. Economic, competitive, governmental, technological, and other factors that may affect Abbott's operations are discussed in Item 1A, Risk Factors, to our annual report on Form 10-K for the year ended December 31, 2022. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
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On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at abbott.com. Note that Abbott has not provided the GAAP financial measure for organic sales growth on a forward-looking basis because the company is unable to predict future changes in foreign exchange rates which could impact reported sales growth. Unless otherwise noted, our commentary on sales growth refers to organic sales growth, which is defined in the quarterly results press release issued earlier today.
With that, I will now turn the call over to Robert.
Robert Ford -- Chairman and Chief Executive Officer
Thanks, Mike. Good morning, everyone, and thanks for joining us. Today, we reported second quarter adjusted earnings per share of $1.08, which reflects an acceleration in the contribution from the underlying base business. Organic sales, excluding COVID testing, increased low double digits for the second quarter in a row and was led by mid-teens growth in medical devices, along with double-digit growth in established pharmaceuticals and nutrition.
On our last couple of earnings calls, I've highlighted improving underlying demand trends across our businesses. These strengthening trends continued in both our institutional and consumer-facing businesses this past quarter. Within the institutional businesses, healthcare systems around the world have continued to improve their ability to expand the supply of healthcare services through ongoing efforts to adjust protocols, manage the labor challenges, and increase the overall available capacity to treat patients. In our more consumer-facing businesses, we're seeing consumers prioritize spending for healthcare products, which is driving increased demand for our products in the U.S.
and internationally. I'll now summarize our second quarter results in more detail before turning the call over to Bob. And I'll start with nutrition, where sales increased 10% in the quarter. In the U.S., growth was led by pediatric nutrition growth of more than 20%.
We continue to make good progress in increasing manufacturing production and have now recovered approximately 75% of the market share in the infant formula business that was lost last year as a result of the voluntary recall. Internationally, total nutrition sales grew 6%, led by growth in both pediatric and adult nutrition businesses. Turning to established pharmaceuticals, sales increased 12.5% in the quarter. This strong performance was led by growth across several markets, including India and China, and therapeutic areas, including gastroenterology, women's health, and CNS pain management.
This business continues to execute at a high level and capitalize on a favorable demographic and socioeconomic trends in emerging markets. Moving to diagnostics, excluding COVID testing, organic sales grew 7%, led by core lab diagnostics, where sales grew 10%, driven by performance in the U.S., Europe, and China. This broad-based strong performance reflects the increased demand for routine diagnostic testing globally. And in the U.S., our blood transfusion testing business continues to make good progress, recovering from the impact of lower plasma donations that occurred during the COVID-19 pandemic.
And I'll wrap up with medical devices, where sales grew more than 14% on an organic basis, including double-digit growth in both U.S. and internationally. In diabetes care, FreeStyle Libre sales exceeded $1.3 billion in the quarter and grew 25% on an organic basis. During the quarter, Libre became the first and only continuous glucose monitoring system to be nationally reimbursed in France for all people with diabetes who use insulin.
This achievement was a direct result of the unique value proposition that Libre offers, a fully featured continuous glucose monitor made available at an accessible price. Abbott has led the way in expanding reimbursement coverage for continuous glucose monitors in order to bring the benefits of this life-changing technology to more people around the world. In cardiovascular devices, sales grew more than 10% overall in the quarter, led by double-digit growth in electrophysiology and structural heart. In electrophysiology, performance was led by international growth of more than 20%, which included high-teens growth in Europe and strong growth in China.
During the quarter, we received U.S. FDA approval for our TactiFlex Ablation Catheter, the world's first ablation catheter with a flexible tip and contact-force sensing technology, which helps to deliver improved procedure outcomes and faster procedure times. In structural heart, performance was driven by MitraClip growth of approximately 10%, along with growth from several recently launched new products. Earlier this year, we submitted for FDA approval for TriClip, our minimally invasive tricuspid valve repair device that helps treat a condition known as tricuspid regurgitation, a leaky heart valve disease.
The clinical trial data supporting our submission showed that TriClip is a highly effective and safe treatment that provides a significant improvement in the quality of life for patients. TriClip is currently being reviewed by the FDA, and we look forward to bringing this first-of-its-kind technology to patients here in the U.S. In rhythm management, growth of 8% was led by Aveir, our recently launched leadless pacemaker. We received FDA approval for our Aveir dual chamber leadless pacemaker, a first-of-its-kind technology that allows for two pacemaker devices to communicate with one another inside the body to provide minimally invasive treatment for those with abnormal heart rhythms.
Aveir was specifically designed to be upgradable and retrievable in order to evolve with patient changes in therapy needs over time. This unique technology offers the potential to revolutionize care for millions of people who require a pacemaker. And lastly, in neuromodulation, sales grew 16%, driven by the recent launch of Eterna, our first rechargeable neurostimulation device for pain management, which targets a large segment of the market where we previously did not compete. During the first half of this year, we introduced several new innovations, including the launch of Eterna and label indication expansions for treating painful diabetic neuropathy and chronic back pain for those who have not had or are not eligible for back surgery.
So, in summary, we exceeded expectations on both top and the bottom lines. Growth in the underlying base business accelerated, driven by improving market conditions and contributions from both new products and legacy growth platforms. And our pipeline continues to be highly productive, which will sustain our strong growth profile in the future. I'll now turn over the call to Bob.
Bob?
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Thanks, Robert. As Mike mentioned earlier, please note that all references to sales growth rates, unless otherwise noted, are on an organic basis. Turning to our second quarter results, sales decreased 9.2% on an organic basis due to, as expected, a year-over-year decline in COVID testing-related sales. excluding COVID testing-related sales, underlying base business organic sales growth was 11.5% in the quarter.
Foreign exchange had an unfavorable year-over-year impact of 2.5% on second quarter sales. During the quarter, we saw the U.S. dollar strengthen somewhat versus several currencies, which resulted in a slightly more unfavorable impact on sales, compared to exchange rates at the time of ourearnings callin April. Regarding other aspects of the P&L, the adjusted gross margin ratio was 55.4% of sales, which reflects continued flow-through impacts from the elevated inflation we experienced last year on certain manufacturing and distribution costs, as well as an unfavorable impact from foreign exchange.
Adjusted R&D was 6.4% of sales, and adjusted SG&A was 27.2% of sales in the second quarter. Lastly, our second quarter adjusted tax rate was 14%. Turning to our outlook for the full year, we now forecast total underlying base business organic sales growth, excluding COVID testing sales, to be in the low double digits. We're now forecasting COVID testing-related sales of around $1.3 billion, which is below our full year forecast of around $1.5 billion that we provided in April, due to current testing dynamics, including lower demand for testing following the end of the public health emergency in May.
For the third quarter, we forecast COVID testing sales of around $100 million. Based on current rates, we expect exchange to have an unfavorable impact of a little more than 1.5% on full year reported sales. Lastly, our full year adjusted earnings per share guidance of $4.30 to $4.50 remains unchanged, but reflects a lower earnings contribution from COVID testing sales compared to expectations in April, offset by raising our underlying base business earnings forecast by approximately $0.05 based on our strong performance and outlook. Compared to the initial guidance we provided back in January, we have now raised our underlying base business earnings forecast by more than $0.15 cents, offsetting the lower contribution from COVID testing versus our initial forecast.
Turning to our outlook for the third quarter, we forecast adjusted earnings per share to be approximately $1.10, which reflects strong growth on the underlying base business. We forecast total underlying base business organic sales growth, excluding COVID testing sales, to be in the low double digits and exchange to have an unfavorable impact of a little more than 1% on our third quarter reported sales. With that, we'll now open the call for questions.
Questions & Answers:
Operator
[Operator instructions] And our first question will come from Joshua Jennings from TD Cowen. Your line is open.
Josh Jennings -- TD Cowen -- Analyst
Hi, good morning, and congratulations on another strong quarter. The core business is generating nice momentum, sales growth accelerating, earnings power increasing. Robert, it'd be great to hear your views first on the drivers of the back-half momentum, assuming the updated low double-digit organic revenue growth forecast for '23. And then, second, it would be great also to get your thoughts on the sustainability of this building momentum in '24 as a business is creating some more challenging comps for next year.
Thanks for taking the questions.
Robert Ford -- Chairman and Chief Executive Officer
Sure, Josh. Yeah, it was a very strong quarter broad-based growth. But listen, I still think that we could do better. And I know my team feels that also.
If you go back a little bit in terms of, you know, a couple years when COVID was happening, we always said that there was a great head share for us, right? And when COVID would subside, we would have a strong base business in making investments in that. I think that's what you're seeing right now play out in these last couple of quarters and what we think is going to continue to play out throughout the rest of the year and going into 2024. We saw very strong growth across all four sectors, excluding the COVID testing piece of it. And as I said in my opening remarks, the institutional business, the consumer business, there was an acceleration from Q1 to Q2 growth versus Q2 of last year.
So, all the right indicators here trending positive and with great momentum. Devices and diagnostics, that was a nice step-up. I attribute that, you know, really good improving market conditions, whether it's the hospital systems addressing, you know, some of the bottlenecks that they had in care, but also markets that are reopening, you know, and that trend continuing. But also, new products.
So, market conditions was part of it, but new product launches also contributed quite a bit there. EPD has sustained, I'd say, high single-digit, low double-digit growth the last two years, and I think that that continued. I think we're probably one of the best-positioned, large healthcare companies in emerging markets. We've got a unique strategy there, a lot of regionalization and a lot of local for local.
And the team does a really good job at executing that. The double-digit growth in nutrition was as expected. We're seeing the recovery in the pediatric business, recovering our market share. You know, my comment there of the three quarters of recovery is more general and broad-based.
But once you start looking at different segments of the infant formula market, different SKU sets, and different types of formula, there are certain segments where we've already back to leadership positions. So, that's moving it all in the right trajectory. And adults is doing very well in several countries. So, COVID declined as we had forecasted.
We decided to bring our COVID number down, a couple of hundred million dollars because we're seeing, you know -- as the public health emergency ended, we saw a little bit of a decline in testing there. So, we'll see how that's going to play out in Q4. It's probably at the first quarter we'll see, Josh, of an endemic respiratory season. So, we'll see how that's going to play out.
But the base business is doing really well. And I'd say from a geographic perspective, it was pretty broad-based also across all geographies, you know, U.S., Europe. Asia. Obviously, China reopening was really positive, too, but it wasn't like this over-indexing in our growth rate with China opening.
I mean, if you look at our growth rate, excluding China, it only added about a point of growth to that 11%, 11.5%. So, it's pretty broad-based across the market. So, pleased with the top line, I believe it's very sustainable, which is why we increased from at least high single to low double-digit growth rate. And I think the pipeline and the productivity is another kind of key aspect in our quarter.
A lot of product approvals, and that's going to drive it. It's probably a little bit early to kind of go through, you know, a specific guidance for 2024, but I think if you look at this COVID decline, this anticipated COVID decline that we had this year, I think it's kind of overshadowed a little bit about the strong and the strength and the performance in the base business. And you start to see -- as that number comes down in COVID, you start to see really the strength of the base business. So, if you look at the base business, it's contributing about $4.10 of earnings for the full year this year.
That's about $0.15 higher to what we originally guided back in January. And I think that's pretty significant growth, even that $4.10 on the base business. And that's really been driven by a top line. So, you look at the leverage in the P&L, the investments we made during COVID, we're able to drive a lot of growth there.
So, pipelines are delivering pretty significantly. And I believe that that is the sustainability going into 2024, that top line. Of course, gross margin is a constant area of focus for us, you know, whether it was the impact of FX or the impact of inflation. But I'm already seeing three out of our four major businesses here showing improved gross margin profiles versus the end of last year.
So, we're seeing good momentum over there. So, if I put this all into account, I think we're achieving a lot of growth, top and bottom line, the new product contributions, strong pipeline, and then the opportunity that we'll have for gross margin expansion. So, I think we're well set up as we go into the second half of this year and as we go into 2024.
Josh Jennings -- TD Cowen -- Analyst
Excellent. Thanks so much.
Operator
Thank you. And our next question will come from Larry Biegelsen from Wells Fargo. Your line is open.
Larry Biegelsen -- Wells Fargo Securities -- Analyst
Good morning. Thanks for taking the question, and congrats on the nice quarter here. Just one for me, Robert. You know, I'd love to hear your thoughts on the medtech Fab 5 in the pipeline, specifically how you're thinking about Aveir and the dual chamber approval and TriClip you mentioned earlier, and just the sustainability of that 11%, you know, cardio neuroma growth that we saw this quarter.
Thanks so much.
Robert Ford -- Chairman and Chief Executive Officer
Sure. Well, that group of products, they did pretty well in the quarter. Combined those products, they grew about 40%, Larry. You know, if you take the Q2 run rate and annualize it, it's annualizing to about, you know, a little over $650 million.
I expect to do better than that in the year as the next quarters progress. You know, regarding your question on these products, I can go through some of them here. I mean, on the Aveir side, we saw a lot of positive developments this quarter for leadless. You have to remember, we received FDA approval for the single chamber last year.
And if you look at some of the claims data, at least the claims data that we're looking at, showing that we've been able to capture about a third of that market, so that's doing really well. But what's really exciting for us. And quite frankly, it's a lot of the KOLs that I've spoken to, especially at HRS this year, with the approval for the dual chamber, which is a much larger segment of that. It makes up at least 80% of that 3 billion worldwide pace market.
And it's the first-ever technology, right, where you've got two implanted devices communicating with each other. So, it's a huge opportunity for us, I think, to really change, you know, paradigm here. It's a little bit of a different implant than what EPs have been accustomed to doing with, you know, pacemakers that have leads. So, our focus here in the beginning, I think, is really to look at the bigger part of the market and make sure that we do a really good job at, you know, creating a real world kind of strong clinical results, making sure, you know, that the implant technique gets well understood.
And so, we'll focus a lot on training and training positions. We'll be opening new centers, of course, but we're going to -- this falls in the bucket, Larry, of just making sure that, you know, we go at the right tempo out of the gate so that we've got a bigger eye on the larger market and the larger conversion because I think that's a huge opportunity for conversion over there. So, there, I'm very excited about -- and the team's already starting their launch plan here. Amulet grew 25% this quarter, which is a great growth rate.
And again, we're also focusing on generating great real-world clinical results there, being thoughtful about how we open the accounts, build a strong, sustainable position. This is a fast-growing market. It's a great opportunity for us. And so, that's done well.
And TAVR with Navitor, again, our quarterly sales -- we're looking at this the other day, our quarterly sales of have roughly doubled in the last 18 months. Now, yeah, granted, it's a smaller base, but I'm just hearing really good feedback from the implanters now once Navitor is out regarding the implant technique, regarding the outcomes. So, I think we're building a really good position here, obviously in the U.S. following the launch.
But internationally, seeing real strong performance, whether it's market share gains or our ability now to open new accounts with this new product. And then TriClip is -- we're seeing similar international performance. Physician enthusiasm here continues to build as now they've got this much better, I'd say, a real effective option here to treat patients that are suffering from TR. So -- and I think the publishing of the TRILUMINATE data earlier this year really gave a boost to those international markets.
I mean, we had clinical data out there, but the TRILUMINATE data, I think, really you can see this correlation in terms of what we're seeing in terms of implants there post-publishing that data. So, I'm excited to bring it here to the U.S. I mean, we submitted it to the FDA earlier this year. The clinical data that supported the submission, as I said in my opening comments, is really strong.
Great quality of life improvement. I'm enthusiastic about the opportunity in the U.S. I mean, it's a PMA submission. We submitted it in January, so we didn't necessarily bake in any kind of significant sales this year.
But I think it's a great contributor for us next year. And then, on neuro, I mean, this market moves a lot with innovation, and we introduce quite a bit of innovation, I would say, over the last six months in this market. There's great opportunity to execute on that. And, you know, there's more to come also in that business too.
So, I look at the cardio neuro business just with these products that we've mentioned here, this group of products that we recently launched, billion-dollar segments, and that were in the early innings. So, I'm excited about it, and I think that it's got a lot of momentum and sustainability on our cardio neuro business, Larry.
Larry Biegelsen -- Wells Fargo Securities -- Analyst
All right, thanks so much.
Operator
Thank you. Our next question comes from Danielle Antalffy from UBS. Your line is open.
Danielle Antalffy -- UBS -- Analyst
Hey, good morning, everyone. Thanks so much for taking the question. And, Robert, you have two product-specific questions, but you totally stole my thunder with that very thorough answer there. But if I could follow-up on specifically Libre and MitraClip.
So, we did see U.S. deceleration in the quarter for Libre. Just wondering what you're seeing out there. You know, you have a competitor launching a new product, but you guys are launching Libre 3, and you do have the basal coverage for Medicare now, but how you see basal ramping.
That's the first product question. And then, the second question is on MitraClip. And, you know, another, a quarter was fine, but, you know, this is a market that had been growing double digits pre-COVID. Just curious about where you think this market falls out on a normalized basis once we're through staffing constraints, once we get through what feels like a little bit of an air pocket in the patient population, given the high mortality rates through COVID.
So, those are my two product questions. Thank you so much.
Robert Ford -- Chairman and Chief Executive Officer
OK, thanks. So, on your Libre question, I think we had a really strong quarter there, Danielle. You know, we grew 25% -- yeah, 30% in the U.S. I think it's pretty strong growth still.
And internationally, we're up 22%. So, that's very positive now that we've kind of put behind us some of the upgrading activities that we were doing toward the second half of last year. And you're seeing the impact there. The basal is a great opportunity.
In my comments, I referenced France. You know, this wasn't just like a tender award. You know, the French health authorities looked at claims data. They looked at data from, you know, basal users using the product.
We got over about a 70 share of that market. So, they looked at it and said, "Wow, this is really having an impact." So, that's good. It provides us great momentum. You look at it, now, you've got U.S., Japan, and France reimbursing for basal.
I mean, those are three of the top five markets in the world. We're well positioned there. U.S. coverage began in April, so that's playing out nicely also.
So, I think we got great momentum here. I'd say what's really exciting is a lot of the upcoming launch activity and pipeline activity that we'll have in the second half of this year. If you look at our integration with pumps, my understanding here that sometime in this second half, we'll see tandem integration with our CGM system here in the U.S., and that'll be exciting. One of the things that we've also got rolled out in planning is, as you might remember, we got L3 approved, full iCGM.
But together with that approval, we also got a 15-day claim. So, we'll be launching our 15-day sensor here in the U.S. second half of this year. So, that's exciting, too.
And the team is on target here to start and initiate our glucose ketone dual sensor trial sometime in Q4 here. So, a lot of pipeline activity in the second half. Probably the one that I'm most excited about, Danielle, is actually Libre 2 streaming. I think this is an incredible opportunity and what the team has been able to do.
I think it's the most exciting launch that we have in this second half here, which is really our ability to convert our entire Libre 2 base from scanning to be able to have real-time streaming through an app update. We ran our first conversion in the U.K. over the weekend. There were some challenges there as we rolled it out.
Team worked over the weekend. But as of the end of day Monday, 90% of the user base was converted. And the social media posts that I've been seeing are just incredibly positive. So, just think about our ability here to convert our entire L2 base into a system slightly smaller version of L3 across the world with all the manufacturing capacity we have.
So, I'm really excited about that. So, I think Libre is on a great trajectory, great momentum, and I think that's going to continue. Regarding your question on MitraClip, yeah, I think the performance was -- you know, I think it was pretty strong, 10% growth. International was up 20%.
So, U.S. was more modest. I think you pointed to some of the challenges that we are seeing. I'm not sure it's so much the staffing portion now, Danielle.
I think it was probably in the second half of last year. We're not seeing that in the other parts of the business. I think the U.S. piece here is really -- you know, our ability here to reignite and restart that referral funnel here in the U.S., which was impacted by the pandemic.
And I think this is going to take a little bit of time, but it's -- key area of focus of the U.S. commercial team here is to really look at the commercial and the clinical team to really start to restart those, you know, that referral process, you know, from the cardiologist into the hospital. This is a -- continues to be an attractive growth area. You can see that where we don't have some of these issues here in the U.S.
We're looking internationally to accelerate as a way to kind of balance it out. We're seeing great growth internationally here. So, the market is still very attractive. We're having a lot of success internationally.
And in the U.S., we're going to focus on this patient referral funnel here. And I think we'll start to see kind of improvements in the numbers.
Danielle Antalffy -- UBS -- Analyst
Thank you so much.
Operator
Thank you. Our next question will come from Vijay Kumar from Evercore ISI. Your line is open.
Vijay Kumar -- Evercore ISI -- Analyst
Hey, guys. Thanks for taking my question, and congrats on a solid print here. Robert, I had a two-part question. One, you did mention double-digit organic for the base.
Is that like -- should we worry about the comp issue for fiscal '24? Because I'm thinking about Lingo, which I think is just launching. Is that enough to sort of maintain some of the strength we're seeing? Any comment on Lingo launch? Update on Lingo would be helpful. And my second part is on gross margins down sequentially. If I'm looking at the 56% overall for the year, it looks like we're probably looking at bottom half of the EPS guidance.
I know you had mentioned $1 billion of inflation impact. How should we think of that benefit in margin expansion in the back half of the '24? Thank you.
Robert Ford -- Chairman and Chief Executive Officer
So, yeah, I'll take the Lingo question, and then I'll ask Bob to fill in on the gross margin. On Lingo piece, this has been part of our strategy, Vijay. It was an afterthought. As we were building the Lingo platform, we knew we'd be in this situation where can we expand beyond diabetes.
We've been very thoughtful about it and very intentional about it. The opportunity during COVID to invest heavily in this was our opportunity. And as I've said in the past, to be thoughtful about this, we had to create a separate group, a fully dedicated group. I was with them a few months ago.
And if you look at the team, the scientists, the engineers, the data experts, the marketing team, etc., they're just focused on this. But it's interesting, their backgrounds here aren't necessarily with diabetes, right? They're more digital health, they're more consumer health. And they've got this target which is to do something that not a lot of well-established companies, healthcare companies do, which is to create a product that's really targeting a healthy population and a healthy population that wants to stay healthy. So, the product was launched yesterday in the U.K.
Kudos to Liz and the team for getting that through. And the value proposition is pretty simple. And I think that's how we needed to think about it for this patient segment here -- for this consumer segment, sorry. And it's really to deliver personalized like metabolic improvement and metabolic health.
And the way it does that, Vijay, is that it's teaching you about glucose spikes. It's teaching the consumer about how your body reacts to food, how it reacts to sleep, how it reacts to exercise. And the goal is to minimize those spikes throughout the day. So, the Lingo coach, it learns -- at first, it learns about your metabolism, right? And then, after it learns about your metabolism by wearing the sensor, it then assigns you a daily target, and we're going to call this the Lingo count.
And this is basically a number that is the amount of spikes that you're allotted to or assigned to during the day. And we're going to track that daily progress and track to that target. And we believe that that's a great kind of behavior modification tool for those that don't have diabetes. You know, there are charts, there's data, there's all that you have in the app.
But we believe that the simplicity of this Lingo count is really key to modifying behavior. It's a subscription-based model. It's direct to consumer. We are looking at opportunities for partnership, but it's direct to consumer.
The web shop is open. And the pricing is pretty much in line with our cash pay price for Libre. And I think the key aspect here is -- for this app is that we have to constantly provide content to the app, constantly new information, new data. And if I think about everything that's going on in the world of AI, and I think about how I think about AI for Abbott, we have a lot of opportunities.
I would put this one here, together with Libre, as our biggest opportunity to capitalize on AI and what it can do for personalization. So, it's out in the U.K. It's launched yesterday. We'll study.
We'll learn from the U.K., and then we'll roll it out to other markets. I'll pre-empt your question, which is always, like, is it going to come to the U.S. Yes, it will. We intend to file in the U.S.
at the end of the year. I don't expect big contribution right now from a financial perspective early on. Maybe my team will surprise me, but I absolutely expect this to be a significant contributor over time for us. And so, that third part of the growth stool here for that platform is out of the gates, and we're excited to see what we can do.
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
OK, so, Vijay, on the gross margin question. So, back in January, we guided a gross margin profile of 56% of sales for the full year. And through the first half of the year, the base business, so excluding COVID testing, is right in line with that. We are, however, seeing lower gross margins on our COVID tests do, you know, really do this significant decline in volumes that we've seen compared to our assumptions at the beginning of the year.
And so, that's really what's being reflected in a little bit lower gross margin that you've seen. And I think for the balance of the year, you know, we would expect to see gross margins roughly in the range of 56%. And then, you know, we would look for steady improvement after that. As Robert talked about, it's a key focus area for us.
Each of our businesses have gross margin improvement programs in place with teams that are dedicated to that effort. And, you know, as we work into 2024, we would expect to see some improvement overall in our gross margins.
Vijay Kumar -- Evercore ISI -- Analyst
Thanks guys.
Operator
Thank you. Our next question will come from Joanne Wuensch from Citi. Your line is open.
Joanne Wuensch -- Citi -- Analyst
Good morning, and thank you for taking the questions. Briefly, can you sort of tear apart the electrophysiology growth rate of 17%? How much of that is in the U.S.? How much of that is o-U.S.? And what do you think is driving that? And then, I'll just jump in with my second question, which is if you've reclaimed about 75% of the pediatric nutritional business, do you get to 100%, or do you think you're more or less where you can get to? Thank you.
Robert Ford -- Chairman and Chief Executive Officer
Sure. So, really good growth on EP. We were up about 17% total. U.S.
was high single digits, around 9%. International was about 24%. In that 24%, Joanne, there's probably about 8 or 9 points of kind of China recovery. So, if you look at the growth rate internationally outside of China, that was about 15%.
So, real strong growth. Again, if you look at Europe specifically, it was up, you know, just under 20%. So, it's pretty broad-based. And even if you look at the big five countries in Europe, did really well there.
TactiFlex in those countries, that's been out there for a couple quarters right now. We only got approval in the U.S. toward the end of the quarter. So, that's doing really well, and it's really helping.
We got really good feedback on the catheter. So, growth is doing very well. The U.S. is probably a little bit impacted by kind of the capital cycle.
If you remember last year, we launched EnSite X, and there was like a very large bolus of kind of upgrading and capital placements that we were making. We get a lot of good feedback on the system, both from the users and from the administration, especially the fact that it's an open system. So, that's done very well. If you look at the consumable part of the U.S.
growth, it was up in the mid teens. So, that -- I guess the term used was tear apart the EP growth rate. But again, it's a great market. We've got a great position and good recovery, and I expect to see this continuing throughout this year.
And sorry, what was your other question?
Joanne Wuensch -- Citi -- Analyst
The other question had to do with the 75% recovery in nutrition. Is that sort of your best case, or is there more to go?
Robert Ford -- Chairman and Chief Executive Officer
No, I kind of made my team and I also kind of said publicly that, you know, our target here is to get back to 100% of our market share by the end of the year. You know, a big driver of that is the manufacturing and the manufacturing kind of ramp up, and, you know, we started the manufacturing -- we reopened the manufacturing process in July for specialty of last year, in August and September for nonspecialty. So, that manufacturing is -- provide us, you know, the supply we need to fulfill the demand. We've got a very strong brand in Similac, and you're seeing that.
So -- and as I said, I think in, I think maybe the -- Josh's question in the beginning, if you look at the different segments -- first of all, if you start with WIC and non-WIC, in the WIC segment, we're back to leadership position. We're back to our position we had before the recall. And that was because we focused a lot in that Q3, Q4 time in that segment. So, I guess long-winded to say, yeah, I mean, we're still on target for that to be able to get to the end of the year with our pre-recall market share.
So -- and I said, if you pull up -- if you break out some of the different formulas, because there's a lot of different SKU sets and different types of formulas, and some of them we're already back to where we were before recall. So, team's working really hard at this, and I'm not changing that target.
Joanne Wuensch -- Citi -- Analyst
Excellent. Thank you.
Operator
Thank you. Our next question comes from Marie Thibault from BTIG. Your line is open.
Marie Thibault -- BTIG -- Analyst
Hi, good morning, and thanks for taking the questions. Wanted to ask a fairly high level one here on the diagnostics business now that COVID testing is sort of behind us. You know, core lab was really strong this quarter. I just want to kind of get an update on the areas of investment and growth in diagnostics testing today.
You know, the Alinity rollout, how that's progressing, and whatever else in terms of tests or trends we should be paying attention to now in diagnostics.
Robert Ford -- Chairman and Chief Executive Officer
Sure. You know, I think we had a really, really good recovery here as the health systems are opening up. You're seeing that routine testing come back. And like I said, it was pretty broad-based, U.S., Europe, Asia, Asia without China.
I mean, it was pretty broad-based, Latin America. So, that's working well. I've said the Alinity is a multiyear kind of cycle. If you look at these contracts, they're seven to 10 years.
So, every year, we've got 15% that's coming up for renewal. I've also said we're trying to strike the balance between top-line growth and gross margin and gross margin expansion. And I think this is the range that we feel is the right range. We could probably accelerate that more with more placements of instruments and more capital.
But you have some friction on your gross margin as you do that. So, we're being thoughtful about how we make these placements and how we expand. One of the areas that, you know, recovered really nicely, and I talked about in the opening comments, was on blood banks. As you know, we're a market leader over here.
So, as the blood bank business and as people come back to doing blood donations and plasma donations, we disproportionately benefit from that, not only here in the U.S. and around the world. So, our big focus here is really to look at the assays and the tests that, you know, are missing on the menus and focus the R&D spend to be able to, you know, to close those gaps. And that was one of the areas that we did during COVID was, you know, while one portion of the diagnostic business was working on the COVID testing, the other group was receiving investment to be able to develop new assays to be able to layer on.
And that, Maria, is extremely -- it's a very important strategic driver for us because you've got the capital that's been placed out in the instrument so we could add more assays to that. That comes with a much higher margin profile. So, that's our key area of focus. Molecular is an area of focus.
We've been working on expanding the menu in molecular also. And then, point of care. You know, one of the most exciting assays that the team has developed for point of care is a rapid test for traumatic brain injury. So, for concussion testing.
We've got it approved on a plasma sample. We're doing all the work to be able to get it on a whole blood sample, which can then, you know, go through a clear waiver test. And then, ultimately you've got now a handheld 15 minute test -- blood test to be able to rule out a concussion that could be -- you know, you could imagine the applications of that kind of test around the world, but specifically a lot in terms of this country. So, that's a lot of our focus in diagnostics.
Marie Thibault -- BTIG -- Analyst
That's great. Congrats on a great quarter.
Robert Ford -- Chairman and Chief Executive Officer
Thanks. Thank you.
Operator
Our next question comes from Matt Miksic from Barclays. Your line is open.
Matt Miksic -- Barclays -- Analyst
Hey, thanks so much for taking the question. I just have one clarification on some of the topics that came up earlier, and then just hopefully one kind of pipeline question. So, on a lot of things going on in CGM and wearables, as you talked about, Robert, and just to kind of, you know, separate these out so we can understand exactly how this will play together maybe over the next, you know, 18, 24 months, Libre 3, Lingo, and sort of -- and ketones. So, Lingo you mentioned filing in the year.
You know, wondering if that's still ketones and lactates for that product and then if there's a path forward that includes ketones for kind of the core CGM Libre 3. And I have just one quick pipeline question, if I could.
Robert Ford -- Chairman and Chief Executive Officer
Sure. Yeah, the Lingo product that was launched yesterday was really starting off with a glucose-only component to it. You know, we had a lot of debate about this, and we wanted to start off simple. The opportunity to add ketones to that is definitely in the mix, Matt.
There's going to be a lot of learning here for us as we, like I say, market a product to a healthy population. And there's going to be a lot of learnings about that. But the idea, as I laid out at CES a couple years ago, is that we'll have a pipeline of different analytes that will come into this. Lactate is on the menu also.
The team has figured that out. There's an interesting application for lactate, both in the consumer market, but also in the institutional market for continuous lactate monitoring. So, bottom line, you know, Lingo is -- it starts with glucose, and then we'll be adding on different analytes as we go learning through that. But all of those opportunities are all there.
And I actually think that there's going to be an opportunity, you know, as I've said, with ketones in the diabetes space for sure. And, you know, that dual sensor with ketones glucose is very strong for a specific diabetes population. But I also think it could be strong, you know, for a nondiabetes population also.
Matt Miksic -- Barclays -- Analyst
Great. Thanks so much. And then, just on the pipeline, we hadn't heard much about what was happening with CSI post the acquisition. And obviously, you know, important strategic fit and around peripheral and their platforms there, but they did have this IVL program that was kind of in process.
And just wondering, you know, if you're ready to comment on where that is or when we might start to hear more about the progress there or your expectations for that. Thanks.
Robert Ford -- Chairman and Chief Executive Officer
Yeah, listen, the CSI, it closed this quarter. Thank you for asking that. I think it's going to really have a strong impact as we look at our vascular business and really focus on the growth in the peripheral. You can see that we've strategically been adding either organically with our below-the-knee stent that we're working on that's currently in trial and then all the inorganic moves that we've been making.
So, that's very clear, and we're super excited about having the CSI portfolio at Abbott. Yeah, and you highlighted, you know, one of the ones that as we were looking at it, that we were, you know, super excited about. And the IVL product, you know, I'll put it this way, as we look and do a lot of the integration efforts, and, you know, we did a lot of that in St. Jude and we learned a lot, I would say from an R&D and portfolio perspective as part of that integration exercise, that's one that gets probably a disproportionate amount of attention and share of mind from us as we're doing the integration and as we're looking at the program and thinking about, you know, would the program benefit with additional resources, etc.
So, I'm not prepared to comment on that right now, Matt. But rest assured that this one here is high on my priority list as we're going through these next kind of quarters here of integration.
Matt Miksic -- Barclays -- Analyst
Excellent. Thanks.
Mike Comilla -- Vice President, Investor Relations
Operator, we'll take one more question, please.
Operator
Thank you. And our final question will come from Jayson Bedford from Raymond James. Your line is open.
Jayson Bedford -- Raymond James -- Analyst
Good morning, and thanks for taking the question. Maybe just on margins. It looked like there was a nice lift to base business op margin. And I'm just wondering, is this all related to the improvement in infant nutrition, or are there other factors at work? And then, maybe just as a bit of a related question.
You talked about the inflationary impacts on gross margin. I think we all understand that. But I'm wondering if you're seeing input costs actually start to come down now. And if so, when will we start to see that impact the P&L?
Robert Ford -- Chairman and Chief Executive Officer
Sure. Regarding the op margin profile, we're actually back to our pre-pandemic op margin profile. So, I think that's really positive. Obviously, the mix of how we get there is a little different.
We got a little bit less gross margin for some of the points that Bob's raised here. But, you know, that op margin profile is really a combination of two things. I'd say we made a lot of investments during COVID. I talked about them.
We outlined them over the last couple of years. And as we go into this year, you're seeing this accelerated top line. We're seeing a lot of leverage in the P&L because of those investments. Haven't had to make the kind of SG&A or R&D investments to be able to drive this, you know, 11.5 or low double-digit top-line growth rate.
So, that's one of the big drivers there. Your question on infant formula, that, obviously, contributes as the product -- as we're recovering the share and the manufacturing is ramping up again. But it's really a combination of all the areas, right? As the device business grows and grows disproportionately, that has a higher gross margin profile, too. So, I'd say it's really across the board on all the businesses.
And this is an area of focus that we have. You know, to your question on gross margin, this is our biggest opportunity, I would say, maintaining this kind of growth rate and then looking at areas where we can improve our gross margins. Your point on input costs are true. We are seeing, you know, certain input costs come down, certain commodities come down.
And if we see that continue throughout -- going into next year, I think we'll have a great opportunity there. One of the things that I wanted to make sure we focused on going into this year was that we had the inventory we needed to be able to capitalize on the opportunities we had from a top-line perspective. And if you remember, Jayson, second half of last year, you know, supply chain is really challenged. And we had some challenges, right? And those supply chain challenges had an impact on our top line.
So, going into this year, we told the team, "Let's make sure we've got all the inventory we need to capitalize on these opportunities." And one of the ways you do that is you've got to lock in your supply, you've got to lock in your volume, you've got to lock in your price. So, as commodities come down and we start to look at our contracts for next year, I think that'll be a great opportunity for us as we go through it. So, that being said, I'll just wrap up here with a few closing comments. We had a very strong start for the first half of the year.
We achieved double-digit organic sales growth on the underlying business. We've done it for two quarters in a row now. The growth is broad-based. It's not focused on one specific area or one geographic area.
It's across the entire portfolio. And all of the areas have delivered great performance. The pipeline has been highly productive. And I think that's the key for us and for our strategy is to make sure that we're bringing new innovations to the market that can kind of sustain our top line and meet unmet needs for patients.
We've raised the organic sales growth and the EPS guidance on the base business. And the EPS guidance in the base business is now forecast, as I said in the beginning, to be about $0.15 higher than our original guidance back in January. So, momentum is building. We're well positioned for the second half of the year and heading into next year.
So, with that, thank you for joining us.
Mike Comilla -- Vice President, Investor Relations
Thank you, operator, and thank you all for your questions. This now concludes Abbott's conference call. A webcast replay of this call will be available after 11 a.m. Central Time today on Abbott's investor relations website at abbottinvestor.com.
Thank you for joining us today.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Mike Comilla -- Vice President, Investor Relations
Robert Ford -- Chairman and Chief Executive Officer
Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer
Josh Jennings -- TD Cowen -- Analyst
Larry Biegelsen -- Wells Fargo Securities -- Analyst
Danielle Antalffy -- UBS -- Analyst
Vijay Kumar -- Evercore ISI -- Analyst
Joanne Wuensch -- Citi -- Analyst
Marie Thibault -- BTIG -- Analyst
Matt Miksic -- Barclays -- Analyst
Jayson Bedford -- Raymond James -- Analyst
More ABT analysis
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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) Q2 2023 Earnings Call Jul 20, 2023, 9:30 a.m. Operator [Operator signoff] Duration: 0 minutes Call participants: Mike Comilla -- Vice President, Investor Relations Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Josh Jennings -- TD Cowen -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Danielle Antalffy -- UBS -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Joanne Wuensch -- Citi -- Analyst Marie Thibault -- BTIG -- Analyst Matt Miksic -- Barclays -- Analyst Jayson Bedford -- Raymond James -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. We continue to make good progress in increasing manufacturing production and have now recovered approximately 75% of the market share in the infant formula business that was lost last year as a result of the voluntary recall. | Operator [Operator signoff] Duration: 0 minutes Call participants: Mike Comilla -- Vice President, Investor Relations Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Josh Jennings -- TD Cowen -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Danielle Antalffy -- UBS -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Joanne Wuensch -- Citi -- Analyst Marie Thibault -- BTIG -- Analyst Matt Miksic -- Barclays -- Analyst Jayson Bedford -- Raymond James -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q2 2023 Earnings Call Jul 20, 2023, 9:30 a.m. Moving to diagnostics, excluding COVID testing, organic sales grew 7%, led by core lab diagnostics, where sales grew 10%, driven by performance in the U.S., Europe, and China. | Operator [Operator signoff] Duration: 0 minutes Call participants: Mike Comilla -- Vice President, Investor Relations Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Josh Jennings -- TD Cowen -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Danielle Antalffy -- UBS -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Joanne Wuensch -- Citi -- Analyst Marie Thibault -- BTIG -- Analyst Matt Miksic -- Barclays -- Analyst Jayson Bedford -- Raymond James -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q2 2023 Earnings Call Jul 20, 2023, 9:30 a.m. Turning to our outlook for the full year, we now forecast total underlying base business organic sales growth, excluding COVID testing sales, to be in the low double digits. | Operator [Operator signoff] Duration: 0 minutes Call participants: Mike Comilla -- Vice President, Investor Relations Robert Ford -- Chairman and Chief Executive Officer Bob Funck -- Executive Vice President, Finance, and Chief Financial Officer Josh Jennings -- TD Cowen -- Analyst Larry Biegelsen -- Wells Fargo Securities -- Analyst Danielle Antalffy -- UBS -- Analyst Vijay Kumar -- Evercore ISI -- Analyst Joanne Wuensch -- Citi -- Analyst Marie Thibault -- BTIG -- Analyst Matt Miksic -- Barclays -- Analyst Jayson Bedford -- Raymond James -- Analyst More ABT analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Abbott Laboratories (NYSE: ABT) Q2 2023 Earnings Call Jul 20, 2023, 9:30 a.m. With that, we'll now open the call for questions. |
30892.0 | 2023-07-20 00:00:00 UTC | Thursday's ETF Movers: XLV, ARKK | ABT | https://www.nasdaq.com/articles/thursdays-etf-movers%3A-xlv-arkk | nan | nan | In trading on Thursday, the The Health Care Select Sector SPDR Fund ETF is outperforming other ETFs, up about 1.7% on the day. Components of that ETF showing particular strength include shares of Johnson & Johnson, up about 5.9% and shares of Abbott Laboratories, up about 3.9% on the day.
And underperforming other ETFs today is the ARK Innovation ETF, off about 3.9% in Thursday afternoon trading. Among components of that ETF with the weakest showing on Thursday were shares of Ginkgo Bioworks Holdings, lower by about 9.8%, and shares of Twist Bioscience, lower by about 9.5% on the day.
VIDEO: Thursday's ETF Movers: XLV, ARKK
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF showing particular strength include shares of Johnson & Johnson, up about 5.9% and shares of Abbott Laboratories, up about 3.9% on the day. Among components of that ETF with the weakest showing on Thursday were shares of Ginkgo Bioworks Holdings, lower by about 9.8%, and shares of Twist Bioscience, lower by about 9.5% on the day. VIDEO: Thursday's ETF Movers: XLV, ARKK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF showing particular strength include shares of Johnson & Johnson, up about 5.9% and shares of Abbott Laboratories, up about 3.9% on the day. Among components of that ETF with the weakest showing on Thursday were shares of Ginkgo Bioworks Holdings, lower by about 9.8%, and shares of Twist Bioscience, lower by about 9.5% on the day. VIDEO: Thursday's ETF Movers: XLV, ARKK The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, the The Health Care Select Sector SPDR Fund ETF is outperforming other ETFs, up about 1.7% on the day. Components of that ETF showing particular strength include shares of Johnson & Johnson, up about 5.9% and shares of Abbott Laboratories, up about 3.9% on the day. Among components of that ETF with the weakest showing on Thursday were shares of Ginkgo Bioworks Holdings, lower by about 9.8%, and shares of Twist Bioscience, lower by about 9.5% on the day. | In trading on Thursday, the The Health Care Select Sector SPDR Fund ETF is outperforming other ETFs, up about 1.7% on the day. Components of that ETF showing particular strength include shares of Johnson & Johnson, up about 5.9% and shares of Abbott Laboratories, up about 3.9% on the day. And underperforming other ETFs today is the ARK Innovation ETF, off about 3.9% in Thursday afternoon trading. |
30893.0 | 2023-07-20 00:00:00 UTC | J&J upbeat on 2023 as devices rebound post-COVID, shares jump | ABT | https://www.nasdaq.com/articles/jj-upbeat-on-2023-as-devices-rebound-post-covid-shares-jump | nan | nan | By Bhanvi Satija and Patrick Wingrove
July 20 (Reuters) - Johnson & Johnson JNJ.Non Thursday expressed optimism for strong growth this year, saying it expected to surpass profit estimates with joint replacement and other surgeries rebounding after COVID-19 and inflation tempering, as its shares rose 6%.
J&J also told investors it was banking on strong demand for its cancer drugs, with protections in place for its blockbuster arthritis drug also bolstering its pharmaceutical portfolio.
Shares of the healthcare conglomerate were up 6.2% in midday trade to $168.61. Shares of other medical device makers such as Medtronic MDT.N and Abbott Laboratories ABT.N, which also posted upbeat results, gained more than 3%.
J&J said it now expects adjusted 2023 profit of $10.70 to $10.80 per share, above estimates of $10.65 per share and its prior forecast of $10.60 to $10.70 per share.
The drug and device maker also posted better-than-expected second-quarter earnings of $2.80 per share, compared with analysts' expectations of $2.62.
It had been "responsibly cautious" in its guidance earlier this year, but growth across the business gave J&J confidence to raise its full-year outlook, Chief Financial Officer Joseph Wolk told Reuters.
"The qualifiers are now off, and if you look across our entire portfolio -- just strength across the board," Wolk said in an interview, noting that despite concerns last quarter, inflation had steadied.
J&J is trying to bolster growth at its pandemic-hit medical devices business while placing huge bets on its newer cancer drugs and seeking to counter a potential slowdown in sales of its Stelara arthritis drug when biosimilars hit as soon as 2025.
Second-quarter sales for the company's medical device unit were $7.79 billion, topping estimates of $7.55 billion.
The volume of procedures such as hip and knee replacements and medical staffing levels needed to deliver them were expected to be "stable" for the rest of the year, J&J said after COVID-19 delayed surgeries and triggered healthcare worker shortages.
J&J's medical device unit's performance is a positive early indicator of what’s ahead for other companies in the sector, Stifel analyst Rick Wise said in a note.
The company said it expects pharmaceutical sales to grow more in the second half of 2023.
Wolk told Reuters that J&J's patent litigation settlement with Amgen <AMGN.O> over arthritis drug Stelara, which met expectations with sales of $2.8 billion in the second quarter,boosted confidence about hitting its target of $57 billion in pharmaceuticals sales by 2025.
J&J has also settled with Alvotech ALVO.O and Teva Pharmaceutical TEVA.TA over their version of Stelara, delaying any competition until 2025, with company executive Erik Haas telling investors no other biosimilars were expected before then.
Quarterly sales of its multiple myeloma drug, Darzalex, also met Wall Street estimates at $2.43 billion, Refinitiv data showed.
Meanwhile, J&J said it would continue efforts to separate from its consumer health unit Kenvue KVUE.N, which sells popular self-care and skincare brands such as Tylenol and Neutrogena and went public in May.
J&J will "split off" its shares of Kenvue through an exchange offer as part of its separation plan that Wolk said "effectively enables us without a significant cash outlay to potentially acquire a number of shares." It currently holds about a 90% stake, according to Refinitiv.
Haas, J&J's vice president for litigation, also told investors it will "aggressively" defend itself amid ongoing proceedings over its talc products, including its Baby Powder, amid ongoing lawsuits and bankruptcy proceedings for its related subsidiary.
J&J is facing more than 38,000 lawsuits alleging the products were contaminated by asbestos and caused cancer, claims it has denied. It is attempting to resolve the issue through an $8.9 billion settlement in bankruptcy court for the second time.
J&J's $8.9 billion talc settlement faces US bankruptcy test - Reuters News https://www.reuters.com/business/healthcare-pharmaceuticals/jjs-89-billion-talc-settlement-faces-us-bankruptcy-test-2023-06-27/
BREAKINGVIEWS: J&J carves itself up at a discount https://www.reuters.com/breakingviews/jj-carves-itself-up-discount-2023-04-24/
J&J's Medical Device and Pharmaceutical Sales https://tmsnrt.rs/46TBs2h
(Reporting by Bhanvi Satija in Bengaluru and Patrick Wingrove in New York; Editing by Anil D'Silva, Mike Harrison and Susan Heavey)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of other medical device makers such as Medtronic MDT.N and Abbott Laboratories ABT.N, which also posted upbeat results, gained more than 3%. It had been "responsibly cautious" in its guidance earlier this year, but growth across the business gave J&J confidence to raise its full-year outlook, Chief Financial Officer Joseph Wolk told Reuters. The volume of procedures such as hip and knee replacements and medical staffing levels needed to deliver them were expected to be "stable" for the rest of the year, J&J said after COVID-19 delayed surgeries and triggered healthcare worker shortages. | Shares of other medical device makers such as Medtronic MDT.N and Abbott Laboratories ABT.N, which also posted upbeat results, gained more than 3%. By Bhanvi Satija and Patrick Wingrove July 20 (Reuters) - Johnson & Johnson JNJ.Non Thursday expressed optimism for strong growth this year, saying it expected to surpass profit estimates with joint replacement and other surgeries rebounding after COVID-19 and inflation tempering, as its shares rose 6%. Second-quarter sales for the company's medical device unit were $7.79 billion, topping estimates of $7.55 billion. | Shares of other medical device makers such as Medtronic MDT.N and Abbott Laboratories ABT.N, which also posted upbeat results, gained more than 3%. J&J is trying to bolster growth at its pandemic-hit medical devices business while placing huge bets on its newer cancer drugs and seeking to counter a potential slowdown in sales of its Stelara arthritis drug when biosimilars hit as soon as 2025. Wolk told Reuters that J&J's patent litigation settlement with Amgen <AMGN.O> over arthritis drug Stelara, which met expectations with sales of $2.8 billion in the second quarter,boosted confidence about hitting its target of $57 billion in pharmaceuticals sales by 2025. | Shares of other medical device makers such as Medtronic MDT.N and Abbott Laboratories ABT.N, which also posted upbeat results, gained more than 3%. J&J said it now expects adjusted 2023 profit of $10.70 to $10.80 per share, above estimates of $10.65 per share and its prior forecast of $10.60 to $10.70 per share. Second-quarter sales for the company's medical device unit were $7.79 billion, topping estimates of $7.55 billion. |
30894.0 | 2023-07-20 00:00:00 UTC | Thursday Sector Leaders: Utilities, Healthcare | ABT | https://www.nasdaq.com/articles/thursday-sector-leaders%3A-utilities-healthcare-5 | nan | nan | The best performing sector as of midday Thursday is the Utilities sector, higher by 1.3%. Within that group, Constellation Energy Corp (Symbol: CEG) and Pinnacle West Capital Corp (Symbol: PNW) are two large stocks leading the way, showing a gain of 2.5% and 2.5%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 1.4% on the day, and down 3.32% year-to-date. Constellation Energy Corp, meanwhile, is up 19.25% year-to-date, and Pinnacle West Capital Corp is up 15.48% year-to-date. Combined, CEG and PNW make up approximately 4.2% of the underlying holdings of XLU.
The next best performing sector is the Healthcare sector, up 1.1%. Among large Healthcare stocks, Johnson & Johnson (Symbol: JNJ) and Abbott Laboratories (Symbol: ABT) are the most notable, showing a gain of 6.2% and 3.9%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is up 1.9% in midday trading, and up 0.56% on a year-to-date basis. Johnson & Johnson, meanwhile, is down 4.08% year-to-date, and Abbott Laboratories is up 3.16% year-to-date. Combined, JNJ and ABT make up approximately 12.4% of the underlying holdings of XLV.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday. As you can see, four sectors are up on the day, while five sectors are down.
SECTOR % CHANGE
Utilities +1.3%
Healthcare +1.1%
Energy +0.9%
Financial +0.4%
Materials -0.1%
Consumer Products -0.2%
Industrial -0.2%
Services -0.5%
Technology & Communications -1.5%
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among large Healthcare stocks, Johnson & Johnson (Symbol: JNJ) and Abbott Laboratories (Symbol: ABT) are the most notable, showing a gain of 6.2% and 3.9%, respectively. Combined, JNJ and ABT make up approximately 12.4% of the underlying holdings of XLV. Combined, CEG and PNW make up approximately 4.2% of the underlying holdings of XLU. | Among large Healthcare stocks, Johnson & Johnson (Symbol: JNJ) and Abbott Laboratories (Symbol: ABT) are the most notable, showing a gain of 6.2% and 3.9%, respectively. Combined, JNJ and ABT make up approximately 12.4% of the underlying holdings of XLV. Within that group, Constellation Energy Corp (Symbol: CEG) and Pinnacle West Capital Corp (Symbol: PNW) are two large stocks leading the way, showing a gain of 2.5% and 2.5%, respectively. | Among large Healthcare stocks, Johnson & Johnson (Symbol: JNJ) and Abbott Laboratories (Symbol: ABT) are the most notable, showing a gain of 6.2% and 3.9%, respectively. Combined, JNJ and ABT make up approximately 12.4% of the underlying holdings of XLV. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 1.4% on the day, and down 3.32% year-to-date. | Among large Healthcare stocks, Johnson & Johnson (Symbol: JNJ) and Abbott Laboratories (Symbol: ABT) are the most notable, showing a gain of 6.2% and 3.9%, respectively. Combined, JNJ and ABT make up approximately 12.4% of the underlying holdings of XLV. The best performing sector as of midday Thursday is the Utilities sector, higher by 1.3%. |
30895.0 | 2023-07-20 00:00:00 UTC | Nasdaq Futures Plunge as Disappointing Tesla and Netflix Results Weigh on Sentiment | ABT | https://www.nasdaq.com/articles/nasdaq-futures-plunge-as-disappointing-tesla-and-netflix-results-weigh-on-sentiment | nan | nan | September Nasdaq 100 E-Mini futures (NQU23) are down -0.67% this morning as disappointing earnings results from U.S. heavyweights Tesla and Netflix weighed on sentiment, while investors looked ahead to the next round of corporate earnings.
Netflix Inc (NFLX) tumbled over -6% in pre-market trading after the company reported weaker-than-expected Q2 revenue and issued a disappointing Q3 revenue forecast. Also, Tesla Inc (TSLA) fell more than -2% in pre-market trading after the Austin-based company’s profitability shrank in Q2 and CEO Elon Musk indicated the possibility of price cuts during “turbulent times.”
In Wednesday’s trading session, Wall Street’s major averages closed higher. AT&T (T) soared over +8% and was among the top percentage gainers on the benchmark S&P 500 after the company announced that it does not have immediate plans to remove lead cables from below Lake Tahoe. Also, Elevance Health Inc (ELV) climbed more than +4% after the company reported upbeat Q2 results and raised its full-year guidance. In addition, Carvana Co (CVNA) surged about +40% after the used car sales company reported better-than-expected Q2 revenue and announced a debt restructuring agreement with noteholders. On the bearish side, Omnicom Group Inc (OMC) plunged more than -10% after reporting weaker-than-expected Q2 results.
Economic data on Wednesday showed U.S. June Building Permits, a proxy for future construction, unexpectedly fell to 1.440M, weaker than expectations of 1.490M. Also, U.S. housing starts came in at 1.434M in June, weaker than expectations of 1.480M.
“Clearly the market is looking through the Fed meeting. In the short term, we’re in this Goldilocks scenario where good news is good news, and bad news is good news,” said Rhys Williams, a chief strategist at Spouting Rock Asset Management.
Meanwhile, U.S. rate futures have priced in a 99.8% probability of a 25 basis point rate increase at the Fed’s monetary policy committee meeting next week.
Second-quarter earnings season kicks into full gear, and investors anticipate new reports from major global companies today, including J&J (JNJ), Abbott Labs (ABT), and Philip Morris (PM). Analysts expect corporate earnings from S&P 500 companies to fall 8.2% year-over-year for the quarter.
Today, all eyes are focused on the U.S. Philadelphia Fed Manufacturing index in a couple of hours. Economists, on average, forecast that the July Philadelphia Fed Manufacturing index will stand at -10.0, compared to the previous value of -13.7.
Also, investors will likely focus on U.S. Existing Home Sales data, which came in at 4.30M in May. Economists foresee the new figure to be 4.20M.
U.S. Initial Jobless Claims data will be reported today as well. Economists estimate this figure to be 242K, compared to last week’s value of 237K.
In the bond markets, United States 10-Year rates are at 3.785%, up +1.10%.
The Euro Stoxx 50 futures are down -0.21% this morning as market participants digested a mixed bag of corporate earnings. Losses in technology stocks are leading the overall market lower, with Asml Holding NV (ASML.A.DX) falling over -3% after Taiwan Semiconductor Manufacturing Co. cut its 2023 revenue outlook. In corporate news, shares of Electrolux Ab (ELUXB.S.DX) plunged over -16% after Europe’s biggest home appliances maker swung to a loss in Q2. At the same time, Saab Ab (SAABB.S.DX) rose over +3% after the Swedish defense group boosted its organic sales growth guidance.
Germany’s PPI and France’s Business Survey data were released today.
The German June PPI has been reported at -0.3% m/m and +0.1% y/y, stronger than expectations of -0.4% m/m and 0.0% y/y.
The French July Business Survey stood at 100, in line with expectations.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.92%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.23%.
China’s Shanghai Composite today closed lower, extending losses into a fourth straight session as the government’s pledge to support the private economy failed to impress investors. The People’s Bank of China kept its benchmark lending rates unchanged on Thursday, aligning with market expectations. Meanwhile, BofA Global Research on Thursday cut China’s economic growth forecast for this year to 5.1% from 5.7% amid a disappointing second-quarter gross domestic product growth. According to the bank’s recent Asia Fund Manager Survey, 57% of investors are anticipating new lows in China equities, undershooting the October 2022 lows. China on Wednesday pledged to make the private economy “bigger, better and stronger” with a set of policy measures aimed at supporting private businesses and strengthening the post-pandemic recovery. On the positive side, shares of China property developers listed in Hong Kong climbed on Thursday following a Bloomberg News report that Chinese authorities are considering easing home-buying restrictions in the country’s biggest cities.
Japan’s Nikkei 225 Stock Index closed sharply lower today, weighed down by losses in chip-related stocks. The trade data released by the Ministry of Finance on Thursday revealed that Japan’s annual exports grew much less than expected in June, while imports declined more than expected, indicating a sluggish global demand. Also, data showed the country’s trade balance unexpectedly swung to a surplus in June, the first since July 2021. Meanwhile, semiconductor testing equipment maker Advantest plunged over -4%, while chip maker Renesas Electronics slid more than -3%. On the positive side, Nissan Motor Co Ltd rose over +1% after the company decided to adopt Tesla’s charging network in North America. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down 2.70% to 19.82.
The Japanese June Trade Balance has been reported at +43.0B, stronger than expectations of -46.7B.
The Japanese June Exports came in at +1.5% y/y, weaker than expectations of +2.2% y/y.
The Japanese June Imports stood at -12.9% y/y, weaker than expectations of -11.3% y/y.
Pre-Market U.S. Stock Movers
International Business Machines (IBM) fell about -1% in pre-market trading after the company reported mixed Q2 results.
Equity Lifestyle Properties Inc (ELS) climbed more than +4% in pre-market trading after being named to join the S&P Midcap 400.
United Airlines Holdings Inc (UAL) gained about +3% in pre-market trading after the company posted upbeat Q2 results and lifted its Q3 and FY23 adjusted EPS guidance.
Discover Financial Services (DFS) plunged more than -12% in pre-market trading after the company reported downbeat Q2 results.
Zions Bancorporation (ZION) soared over +5% in pre-market trading after the regional lender posted stronger-than-expected Q2 results and reflected a robust rebound in customer deposits.
Cadence Design Systems Inc (CDNS) rose more than +1% in pre-market trading after Stifel upgraded the stock to Buy from Hold.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Thursday - July 20th
J&J (JNJ), Abbott Labs (ABT), Philip Morris (PM), Blackstone Group (BX), Intuitive Surgical (ISRG), Marsh McLennan (MMC), CSX (CSX), Freeport-McMoran (FCX), Kenvue (KVUE), Truist Financial Corp (TFC), Capital One Financial (COF), DR Horton (DHI), Travelers (TRV), Newmont Goldcorp (NEM), PPG Industries (PPG), Nidec (NJDCY), Genuine Parts (GPC), Fifth Third (FITB), WR Berkley (WRB), Snap-On (SNA), Pool (POOL), American Airlines (AAL), KeyCorp (KEY), MarketAxesss (MKTX), Knight Transportation (KNX), East West Bancorp (EWBC), Webster Financial (WBS), Synovus (SNV), Bank Ozk (OZK), Home BancShares (HOMB), ManpowerGroup (MAN), Badger Meter (BMI), Glacier (GBCI), WNS Holdings (WNS), Texas Capital (TCBI), Associated Banc-Corp (ASB), ServisFirst Bancshares (SFBS), First Financial Bancorp (FFBC), Triumph Bancorp (TFIN), OFG Bancorp (OFG), Scholastic (SCHL), S&T Bancorp (STBA), Forestar (FOR), 1st Source (SRCE), OceanFirst (OCFC), Berkshire Hills Bancorp (BHLB), Foreign Trade Bank of Latin America (BLX), Amerant Bancorp A (AMTB), Heritage Financial Co (HFWA), Insteel Industries (IIIN), Sify (SIFY), Metropolitan Bank (MCB), Five Point (FPH), Capstar Financial (CSTR), Alpine Income (PINE).
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On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Second-quarter earnings season kicks into full gear, and investors anticipate new reports from major global companies today, including J&J (JNJ), Abbott Labs (ABT), and Philip Morris (PM). You can see more pre-market stock movers here Today’s U.S. Earnings Spotlight: Thursday - July 20th J&J (JNJ), Abbott Labs (ABT), Philip Morris (PM), Blackstone Group (BX), Intuitive Surgical (ISRG), Marsh McLennan (MMC), CSX (CSX), Freeport-McMoran (FCX), Kenvue (KVUE), Truist Financial Corp (TFC), Capital One Financial (COF), DR Horton (DHI), Travelers (TRV), Newmont Goldcorp (NEM), PPG Industries (PPG), Nidec (NJDCY), Genuine Parts (GPC), Fifth Third (FITB), WR Berkley (WRB), Snap-On (SNA), Pool (POOL), American Airlines (AAL), KeyCorp (KEY), MarketAxesss (MKTX), Knight Transportation (KNX), East West Bancorp (EWBC), Webster Financial (WBS), Synovus (SNV), Bank Ozk (OZK), Home BancShares (HOMB), ManpowerGroup (MAN), Badger Meter (BMI), Glacier (GBCI), WNS Holdings (WNS), Texas Capital (TCBI), Associated Banc-Corp (ASB), ServisFirst Bancshares (SFBS), First Financial Bancorp (FFBC), Triumph Bancorp (TFIN), OFG Bancorp (OFG), Scholastic (SCHL), S&T Bancorp (STBA), Forestar (FOR), 1st Source (SRCE), OceanFirst (OCFC), Berkshire Hills Bancorp (BHLB), Foreign Trade Bank of Latin America (BLX), Amerant Bancorp A (AMTB), Heritage Financial Co (HFWA), Insteel Industries (IIIN), Sify (SIFY), Metropolitan Bank (MCB), Five Point (FPH), Capstar Financial (CSTR), Alpine Income (PINE). China’s Shanghai Composite today closed lower, extending losses into a fourth straight session as the government’s pledge to support the private economy failed to impress investors. | Second-quarter earnings season kicks into full gear, and investors anticipate new reports from major global companies today, including J&J (JNJ), Abbott Labs (ABT), and Philip Morris (PM). You can see more pre-market stock movers here Today’s U.S. Earnings Spotlight: Thursday - July 20th J&J (JNJ), Abbott Labs (ABT), Philip Morris (PM), Blackstone Group (BX), Intuitive Surgical (ISRG), Marsh McLennan (MMC), CSX (CSX), Freeport-McMoran (FCX), Kenvue (KVUE), Truist Financial Corp (TFC), Capital One Financial (COF), DR Horton (DHI), Travelers (TRV), Newmont Goldcorp (NEM), PPG Industries (PPG), Nidec (NJDCY), Genuine Parts (GPC), Fifth Third (FITB), WR Berkley (WRB), Snap-On (SNA), Pool (POOL), American Airlines (AAL), KeyCorp (KEY), MarketAxesss (MKTX), Knight Transportation (KNX), East West Bancorp (EWBC), Webster Financial (WBS), Synovus (SNV), Bank Ozk (OZK), Home BancShares (HOMB), ManpowerGroup (MAN), Badger Meter (BMI), Glacier (GBCI), WNS Holdings (WNS), Texas Capital (TCBI), Associated Banc-Corp (ASB), ServisFirst Bancshares (SFBS), First Financial Bancorp (FFBC), Triumph Bancorp (TFIN), OFG Bancorp (OFG), Scholastic (SCHL), S&T Bancorp (STBA), Forestar (FOR), 1st Source (SRCE), OceanFirst (OCFC), Berkshire Hills Bancorp (BHLB), Foreign Trade Bank of Latin America (BLX), Amerant Bancorp A (AMTB), Heritage Financial Co (HFWA), Insteel Industries (IIIN), Sify (SIFY), Metropolitan Bank (MCB), Five Point (FPH), Capstar Financial (CSTR), Alpine Income (PINE). Pre-Market U.S. Stock Movers International Business Machines (IBM) fell about -1% in pre-market trading after the company reported mixed Q2 results. | You can see more pre-market stock movers here Today’s U.S. Earnings Spotlight: Thursday - July 20th J&J (JNJ), Abbott Labs (ABT), Philip Morris (PM), Blackstone Group (BX), Intuitive Surgical (ISRG), Marsh McLennan (MMC), CSX (CSX), Freeport-McMoran (FCX), Kenvue (KVUE), Truist Financial Corp (TFC), Capital One Financial (COF), DR Horton (DHI), Travelers (TRV), Newmont Goldcorp (NEM), PPG Industries (PPG), Nidec (NJDCY), Genuine Parts (GPC), Fifth Third (FITB), WR Berkley (WRB), Snap-On (SNA), Pool (POOL), American Airlines (AAL), KeyCorp (KEY), MarketAxesss (MKTX), Knight Transportation (KNX), East West Bancorp (EWBC), Webster Financial (WBS), Synovus (SNV), Bank Ozk (OZK), Home BancShares (HOMB), ManpowerGroup (MAN), Badger Meter (BMI), Glacier (GBCI), WNS Holdings (WNS), Texas Capital (TCBI), Associated Banc-Corp (ASB), ServisFirst Bancshares (SFBS), First Financial Bancorp (FFBC), Triumph Bancorp (TFIN), OFG Bancorp (OFG), Scholastic (SCHL), S&T Bancorp (STBA), Forestar (FOR), 1st Source (SRCE), OceanFirst (OCFC), Berkshire Hills Bancorp (BHLB), Foreign Trade Bank of Latin America (BLX), Amerant Bancorp A (AMTB), Heritage Financial Co (HFWA), Insteel Industries (IIIN), Sify (SIFY), Metropolitan Bank (MCB), Five Point (FPH), Capstar Financial (CSTR), Alpine Income (PINE). Second-quarter earnings season kicks into full gear, and investors anticipate new reports from major global companies today, including J&J (JNJ), Abbott Labs (ABT), and Philip Morris (PM). The trade data released by the Ministry of Finance on Thursday revealed that Japan’s annual exports grew much less than expected in June, while imports declined more than expected, indicating a sluggish global demand. | Second-quarter earnings season kicks into full gear, and investors anticipate new reports from major global companies today, including J&J (JNJ), Abbott Labs (ABT), and Philip Morris (PM). You can see more pre-market stock movers here Today’s U.S. Earnings Spotlight: Thursday - July 20th J&J (JNJ), Abbott Labs (ABT), Philip Morris (PM), Blackstone Group (BX), Intuitive Surgical (ISRG), Marsh McLennan (MMC), CSX (CSX), Freeport-McMoran (FCX), Kenvue (KVUE), Truist Financial Corp (TFC), Capital One Financial (COF), DR Horton (DHI), Travelers (TRV), Newmont Goldcorp (NEM), PPG Industries (PPG), Nidec (NJDCY), Genuine Parts (GPC), Fifth Third (FITB), WR Berkley (WRB), Snap-On (SNA), Pool (POOL), American Airlines (AAL), KeyCorp (KEY), MarketAxesss (MKTX), Knight Transportation (KNX), East West Bancorp (EWBC), Webster Financial (WBS), Synovus (SNV), Bank Ozk (OZK), Home BancShares (HOMB), ManpowerGroup (MAN), Badger Meter (BMI), Glacier (GBCI), WNS Holdings (WNS), Texas Capital (TCBI), Associated Banc-Corp (ASB), ServisFirst Bancshares (SFBS), First Financial Bancorp (FFBC), Triumph Bancorp (TFIN), OFG Bancorp (OFG), Scholastic (SCHL), S&T Bancorp (STBA), Forestar (FOR), 1st Source (SRCE), OceanFirst (OCFC), Berkshire Hills Bancorp (BHLB), Foreign Trade Bank of Latin America (BLX), Amerant Bancorp A (AMTB), Heritage Financial Co (HFWA), Insteel Industries (IIIN), Sify (SIFY), Metropolitan Bank (MCB), Five Point (FPH), Capstar Financial (CSTR), Alpine Income (PINE). Netflix Inc (NFLX) tumbled over -6% in pre-market trading after the company reported weaker-than-expected Q2 revenue and issued a disappointing Q3 revenue forecast. |
30896.0 | 2023-07-20 00:00:00 UTC | Johnson & Johnson's Inflection Point: What it Means for Investors | ABT | https://www.nasdaq.com/articles/johnson-johnsons-inflection-point%3A-what-it-means-for-investors | nan | nan | After three years of waiting, Johnson & Johnson (NYSE: JNJ) shares have returned to trend, a monumental event for the market which presents a potential buying opportunity for income investors.
Not only is Johnson & Johnson's business sound but results from competitors like Abbott Laboratories (NYSE: ABT) and trends within the consumer health market suggest strength will continue. Johnson & Johnson price action may experience some volatility soon, but the long-term outlook is bullish.
Johnson & Johnson Grows in Q2
One of the advantages of Johnson & Johnson is less volatile exposure to COVID-19. Where Abbott's exposure is to diagnostics and testing, which are rapidly declining, Johnson & Johnson is more exposed to the vaccine side, which will remain healthy. The results include top- and bottom-line growth compared to Abbott's year-over-year (YOY) decline.
Johnson & Johnson reported $25.53 billion in net revenue for a gain of 6.4%, beating the MarketBeat.com consensus by $0.860 billion, or about 350 basis points.
Gains were made in all regions and segments, led by the U.S. and medtech. Sales in the U.S. grew by 10.2% compared to 2.2% for the international market. Medtech grew by 12.9%, driven by the resumption of elective procedures globally. Consumer health grew by 7.7% and pharmaceuticals by 3.8%.
The margin news is also good. The company was able to control costs and leverage sales growth to widen the margin, if only slightly. The company's net earnings outpaced revenue growth by a few dozen bps, while the GAAP and adjusted EPS did the same to net earnings. Share repurchases aid adjusted EPS, but it is strong regardless. The $2.80 in adjusted EPS is up 8.1% compared to last year, beating the consensus by 18 cents, or 680 basis points and leading to an increase in guidance.
Johnson & Johnson issued favorable guidance. The company raised the mid-points for top- and bottom-line results to a range well above the previous forecast. The company expects adjusted EPS of $10.70 to $10.80 compared to the $10.65 consensus, which is likely cautious. The company shows momentum in its core operations that could build as the year progresses.
Johnson & Johnson Offers Yield and Value
Johnson & Johnson offers yield and value relative to Abbott Laboratories and the broad market. The stock trades at only 15x earnings compared to nearly 17x for the broad market and 25x for ABT stock. Johnson & Johnson also has a more favorable yield at 3% compared to only 1.9% at ABT. Both payouts are equally safe, the companies are Dividend Kings with low payout ratios near 45%, but JNJ's is the better buy.
The analysts are less enthusiastic about JNJ stock than ABT, but that may change soon. JNJ is pegged at "hold" compared to ABT's "moderate buy," but both have a high-single-digit to low-double-digit upside potential. The question for each is if the analysts will be jazzed by the results and begin lifting their targets. If they do, it will signal a bottoming in sentiment that will help support the market at the long-term trend line.
This chart is interesting because of the setup. The market is in a long and sustained uptrend and testing support at the trendline. Support looks solid now; another rally should form if the market follows through on the signal.
In this scenario, the market should move above $165 soon and trend upward to an all-time high and possibly to new highs later this year. If not, JNJ could remain range-bound at current levels until there is more clarity on the economic outlook for 2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | JNJ is pegged at "hold" compared to ABT's "moderate buy," but both have a high-single-digit to low-double-digit upside potential. Not only is Johnson & Johnson's business sound but results from competitors like Abbott Laboratories (NYSE: ABT) and trends within the consumer health market suggest strength will continue. The stock trades at only 15x earnings compared to nearly 17x for the broad market and 25x for ABT stock. | Not only is Johnson & Johnson's business sound but results from competitors like Abbott Laboratories (NYSE: ABT) and trends within the consumer health market suggest strength will continue. The stock trades at only 15x earnings compared to nearly 17x for the broad market and 25x for ABT stock. Johnson & Johnson also has a more favorable yield at 3% compared to only 1.9% at ABT. | Not only is Johnson & Johnson's business sound but results from competitors like Abbott Laboratories (NYSE: ABT) and trends within the consumer health market suggest strength will continue. The stock trades at only 15x earnings compared to nearly 17x for the broad market and 25x for ABT stock. Johnson & Johnson also has a more favorable yield at 3% compared to only 1.9% at ABT. | Not only is Johnson & Johnson's business sound but results from competitors like Abbott Laboratories (NYSE: ABT) and trends within the consumer health market suggest strength will continue. Johnson & Johnson also has a more favorable yield at 3% compared to only 1.9% at ABT. The stock trades at only 15x earnings compared to nearly 17x for the broad market and 25x for ABT stock. |
30897.0 | 2023-07-20 00:00:00 UTC | Abbott Laboratories Has the Prescription for Higher Share Prices | ABT | https://www.nasdaq.com/articles/abbott-laboratories-has-the-prescription-for-higher-share-prices | nan | nan | Abbott Laboratories (NYSE: ABT) is a tale of two stories. The first is its recovery from the COVID-19 boost and bubble. The second is the underlying core business, which is as strong as ever.
The company is "shrinking" due to the COVID-19-related testing and sales decline. The organic business is growing by double digits, and the company is guiding it higher. Abbott Laboratories stock remains one of the healthiest investments in the healthcare space, and its shares are ready to begin rebounding. Headline growth may not return until the first quarter of next year, but it's back in the forecast.
"We're achieving strong growth in our underlying base business," said Robert B. Ford, Abbott's chairman and chief executive officer. "We expect our highly productive pipeline to sustain the momentum we're building this year and position us well for growth in the future."
Abbott Laboratories Outperforms in Q2
Abbott Laboratories had a great Q2 quarter despite the impact of COVID-19 testing sales on the top and bottom lines. The company reported $10 billion in sales, a decline of 11.4% compared to last year, including the impacts of COVID-19. Revenue is 290 basis points better than expected and up 25% compared to 2019. Sales are up 22% compared to 2019 on an ex-COVID-19 basis; organic sales are up 11.5% this quarter due to strength in all segments except diagnostic.
Medical devices led the group with a gain of 13.5%. Device sales are driven by the resumption of elective medical procedures and are expected to remain strong across the industry. Nutrition posted the second most substantial gain at 6.3%, followed by a 5.2% increase in established pharmaceuticals. Diagnostics, which includes COVID-19 testing, fell by 46% on a greater-than-50% decline in COVID-19 sales.
The margin news is also good. The company's adjusted $1.08 in earnings is down compared to last year but three cents better than expected, or 285 basis points, and aligned with the top-line strength. The only bad news in the report is that GAAP earnings were guided lower by three cents to a low end of $3.02. The company also expects organic sales strength to persist and offset the COVID weakness. Among the drivers of organic strength are new products and expanded coverage of existing products.
The Analysts' Sentiment is at Bottom
The trend in analysts' sentiment is mixed for 2023 but ultimately supportive of the price action. The 16 with current ratings have the stock pegged at "moderate buy" with a price target about 12% above the recent action.
The price target is down compared to last year, last quarter and last month, but the decline has slowed dramatically and may reverse course now that Q2 results are in. In this scenario, the stock price is also at the bottom and ready to move higher with the right catalyst.
Institutions have bought on balance for the last year and support the market. Their activity ramped up in Q1 and Q2 2023, coincident with a bottom in the action. If this trend continues, the stock will have nowhere to go but up. As it is, the institutions own about 73% of this 1.9% yielding distribution compounder.
The chart shows a bottom in price action and a market ready to move higher. The post-release action has the price up marginally but confirms support at a critical level. Assuming the market follows through on this signal, the stock price should rise to $109.50, where it may gain momentum. The critical resistance is near $115, and a move above that would be bullish.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Laboratories (NYSE: ABT) is a tale of two stories. Abbott Laboratories stock remains one of the healthiest investments in the healthcare space, and its shares are ready to begin rebounding. "We're achieving strong growth in our underlying base business," said Robert B. Ford, Abbott's chairman and chief executive officer. | Abbott Laboratories (NYSE: ABT) is a tale of two stories. The company reported $10 billion in sales, a decline of 11.4% compared to last year, including the impacts of COVID-19. The company also expects organic sales strength to persist and offset the COVID weakness. | Abbott Laboratories (NYSE: ABT) is a tale of two stories. Abbott Laboratories Outperforms in Q2 Abbott Laboratories had a great Q2 quarter despite the impact of COVID-19 testing sales on the top and bottom lines. Sales are up 22% compared to 2019 on an ex-COVID-19 basis; organic sales are up 11.5% this quarter due to strength in all segments except diagnostic. | Abbott Laboratories (NYSE: ABT) is a tale of two stories. Sales are up 22% compared to 2019 on an ex-COVID-19 basis; organic sales are up 11.5% this quarter due to strength in all segments except diagnostic. In this scenario, the stock price is also at the bottom and ready to move higher with the right catalyst. |
30898.0 | 2023-07-20 00:00:00 UTC | Abbott Laboratories Reaffirms FY23 Adj. EPS Outlook - Update | ABT | https://www.nasdaq.com/articles/abbott-laboratories-reaffirms-fy23-adj.-eps-outlook-update | nan | nan | (RTTNews) - While reporting financial results for the second quarter on Thursday, Abbott Laboratories (ABT) reaffirmed its adjusted earnings guidance for the full-year 2023.
For fiscal 2023, the company now projects earnings in a range of $3.02 to $3.22 per share and adjusted earnings in a range of $4.30 to $4.50 per share.
Previously, the company expected earnings in the range of $3.05 to $3.25 per share and adjusted earnings in the range of $4.30 to $4.50 per share.
On average, 24 analysts polled by Thomson Reuters expect the company to report earnings of $4.40 per share for the year. Analysts' estimates typically exclude special items.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - While reporting financial results for the second quarter on Thursday, Abbott Laboratories (ABT) reaffirmed its adjusted earnings guidance for the full-year 2023. On average, 24 analysts polled by Thomson Reuters expect the company to report earnings of $4.40 per share for the year. Analysts' estimates typically exclude special items. | (RTTNews) - While reporting financial results for the second quarter on Thursday, Abbott Laboratories (ABT) reaffirmed its adjusted earnings guidance for the full-year 2023. For fiscal 2023, the company now projects earnings in a range of $3.02 to $3.22 per share and adjusted earnings in a range of $4.30 to $4.50 per share. Previously, the company expected earnings in the range of $3.05 to $3.25 per share and adjusted earnings in the range of $4.30 to $4.50 per share. | (RTTNews) - While reporting financial results for the second quarter on Thursday, Abbott Laboratories (ABT) reaffirmed its adjusted earnings guidance for the full-year 2023. For fiscal 2023, the company now projects earnings in a range of $3.02 to $3.22 per share and adjusted earnings in a range of $4.30 to $4.50 per share. Previously, the company expected earnings in the range of $3.05 to $3.25 per share and adjusted earnings in the range of $4.30 to $4.50 per share. | (RTTNews) - While reporting financial results for the second quarter on Thursday, Abbott Laboratories (ABT) reaffirmed its adjusted earnings guidance for the full-year 2023. Previously, the company expected earnings in the range of $3.05 to $3.25 per share and adjusted earnings in the range of $4.30 to $4.50 per share. Analysts' estimates typically exclude special items. |
30899.0 | 2023-07-20 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABT | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-97 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
NU Skin Enterprises, Inc. (Symbol: NUS) $29.48 $40.25 36.53%
Chevron Corporation (Symbol: CVX) $154.69 $191.06 23.51%
Royal Gold Inc (Symbol: RGLD) $122.00 $141.25 15.78%
Abbott Laboratories (Symbol: ABT) $107.28 $123.12 14.77%
Johnson & Johnson (Symbol: JNJ) $158.74 $181.57 14.38%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
NU Skin Enterprises, Inc. (Symbol: NUS) 5.29% 36.53% 41.82%
Chevron Corporation (Symbol: CVX) 3.90% 23.51% 27.41%
Royal Gold Inc (Symbol: RGLD) 1.23% 15.78% 17.01%
Abbott Laboratories (Symbol: ABT) 1.90% 14.77% 16.67%
Johnson & Johnson (Symbol: JNJ) 3.00% 14.38% 17.38%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
NU Skin Enterprises, Inc. (Symbol: NUS) $1.53 $1.55 1.31%
Chevron Corporation (Symbol: CVX) $5.52 $5.86 6.16%
Royal Gold Inc (Symbol: RGLD) $1.35 $1.475 9.26%
Abbott Laboratories (Symbol: ABT) $1.86 $2 7.53%
Johnson & Johnson (Symbol: JNJ) $4.31 $4.58 6.26%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
Also see:
Mega Mergers
Top Ten Hedge Funds Holding NRX
CNMD Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on ABT — FREE Get the latest Zacks research report on JNJ — FREE Dividend Growth Stocks: 25 Aristocrats » Also see: Mega Mergers Top Ten Hedge Funds Holding NRX CNMD Split History The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. NU Skin Enterprises, Inc. (Symbol: NUS) $29.48 $40.25 36.53% Chevron Corporation (Symbol: CVX) $154.69 $191.06 23.51% Royal Gold Inc (Symbol: RGLD) $122.00 $141.25 15.78% Abbott Laboratories (Symbol: ABT) $107.28 $123.12 14.77% Johnson & Johnson (Symbol: JNJ) $158.74 $181.57 14.38% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NU Skin Enterprises, Inc. (Symbol: NUS) 5.29% 36.53% 41.82% Chevron Corporation (Symbol: CVX) 3.90% 23.51% 27.41% Royal Gold Inc (Symbol: RGLD) 1.23% 15.78% 17.01% Abbott Laboratories (Symbol: ABT) 1.90% 14.77% 16.67% Johnson & Johnson (Symbol: JNJ) 3.00% 14.38% 17.38% Another consideration with dividend growth stocks is just how much the dividend is growing. | NU Skin Enterprises, Inc. (Symbol: NUS) $29.48 $40.25 36.53% Chevron Corporation (Symbol: CVX) $154.69 $191.06 23.51% Royal Gold Inc (Symbol: RGLD) $122.00 $141.25 15.78% Abbott Laboratories (Symbol: ABT) $107.28 $123.12 14.77% Johnson & Johnson (Symbol: JNJ) $158.74 $181.57 14.38% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NU Skin Enterprises, Inc. (Symbol: NUS) 5.29% 36.53% 41.82% Chevron Corporation (Symbol: CVX) 3.90% 23.51% 27.41% Royal Gold Inc (Symbol: RGLD) 1.23% 15.78% 17.01% Abbott Laboratories (Symbol: ABT) 1.90% 14.77% 16.67% Johnson & Johnson (Symbol: JNJ) 3.00% 14.38% 17.38% Another consideration with dividend growth stocks is just how much the dividend is growing. NU Skin Enterprises, Inc. (Symbol: NUS) $1.53 $1.55 1.31% Chevron Corporation (Symbol: CVX) $5.52 $5.86 6.16% Royal Gold Inc (Symbol: RGLD) $1.35 $1.475 9.26% Abbott Laboratories (Symbol: ABT) $1.86 $2 7.53% Johnson & Johnson (Symbol: JNJ) $4.31 $4.58 6.26% These five stocks are part of our full Dividend Aristocrats List. | NU Skin Enterprises, Inc. (Symbol: NUS) $29.48 $40.25 36.53% Chevron Corporation (Symbol: CVX) $154.69 $191.06 23.51% Royal Gold Inc (Symbol: RGLD) $122.00 $141.25 15.78% Abbott Laboratories (Symbol: ABT) $107.28 $123.12 14.77% Johnson & Johnson (Symbol: JNJ) $158.74 $181.57 14.38% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NU Skin Enterprises, Inc. (Symbol: NUS) 5.29% 36.53% 41.82% Chevron Corporation (Symbol: CVX) 3.90% 23.51% 27.41% Royal Gold Inc (Symbol: RGLD) 1.23% 15.78% 17.01% Abbott Laboratories (Symbol: ABT) 1.90% 14.77% 16.67% Johnson & Johnson (Symbol: JNJ) 3.00% 14.38% 17.38% Another consideration with dividend growth stocks is just how much the dividend is growing. NU Skin Enterprises, Inc. (Symbol: NUS) $1.53 $1.55 1.31% Chevron Corporation (Symbol: CVX) $5.52 $5.86 6.16% Royal Gold Inc (Symbol: RGLD) $1.35 $1.475 9.26% Abbott Laboratories (Symbol: ABT) $1.86 $2 7.53% Johnson & Johnson (Symbol: JNJ) $4.31 $4.58 6.26% These five stocks are part of our full Dividend Aristocrats List. | NU Skin Enterprises, Inc. (Symbol: NUS) $29.48 $40.25 36.53% Chevron Corporation (Symbol: CVX) $154.69 $191.06 23.51% Royal Gold Inc (Symbol: RGLD) $122.00 $141.25 15.78% Abbott Laboratories (Symbol: ABT) $107.28 $123.12 14.77% Johnson & Johnson (Symbol: JNJ) $158.74 $181.57 14.38% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. NU Skin Enterprises, Inc. (Symbol: NUS) 5.29% 36.53% 41.82% Chevron Corporation (Symbol: CVX) 3.90% 23.51% 27.41% Royal Gold Inc (Symbol: RGLD) 1.23% 15.78% 17.01% Abbott Laboratories (Symbol: ABT) 1.90% 14.77% 16.67% Johnson & Johnson (Symbol: JNJ) 3.00% 14.38% 17.38% Another consideration with dividend growth stocks is just how much the dividend is growing. NU Skin Enterprises, Inc. (Symbol: NUS) $1.53 $1.55 1.31% Chevron Corporation (Symbol: CVX) $5.52 $5.86 6.16% Royal Gold Inc (Symbol: RGLD) $1.35 $1.475 9.26% Abbott Laboratories (Symbol: ABT) $1.86 $2 7.53% Johnson & Johnson (Symbol: JNJ) $4.31 $4.58 6.26% These five stocks are part of our full Dividend Aristocrats List. |
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