Abbott stock slumped Thursday despite offering a "clean print" that included strong second-quarter growth for its diabetes business and a guidance boost, according to one analyst.
During the three months ended June 30, Abbott Laboratories earned $1.14 a share on $10.38 billion in sales. Earnings climbed nearly 6% year over year and topped analysts' call by three pennies. Sales grew 4% on a strict, as-reported basis, and 9.3% organically.
But on today's stock market, Abbott stock fell 4.4%, closing at 100.07. Shares tumbled as much as 4.7% and undercut their 50-day moving average, according to MarketSurge.
Abbott Stock: Medical Devices Drive Beat
The medical devices segment drove Abbott's second-quarter beat, Evercore ISI analyst Vijay Kumar said in a report. Sales jumped 10.2% on a strict, as-reported basis to $4.73 billion. Organically, sales surged 12.1% and topped forecasts by 130 basis points, he said.
All subsegments within the medical devices business beat forecasts. Revenue from electrophysiology products — a means of analyzing the heart's electrical system — climbed 16.7% organically.
Diabetes care sales were in line with forecasts and included $1.6 billion from FreeStyle Libre, a body-worn continuous glucose monitor. Libre sales jumped 20.4% organically. Evercore's Kumar noted Abbott added about 250,000 new users, which is consistent with the previous quarter.
Nutrition sales were also in line with forecasts, though established pharmaceuticals — which Abbott sells abroad — came in light.
Abbott now expects to earn $4.61 to $4.71 per share this year. The midpoint of Abbott's outlook is a slight boost from its previous guidance for $4.55 to $4.70 per share. Abbott also narrowed its sales outlook and now expects organic growth of 9.5% to 10% this year. But the midpoint of the new guide is above prior expectations.
Evercore's Kumar kept his outperform rating and 120 price target on Abbott stock.
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