These 5 Companies Upped Guidance Despite Global Economic Headwinds

3. Abbott Laboratories (NYSE:ABT)

Market Cap as of July 21: $191.833 billion

Abbott Laboratories (NYSE:ABT) is an American multinational healthcare company. The company has four basic segments – established pharmaceutical products, diagnostic products, nutritional products, and medical devices.

Abbott Laboratories (NYSE:ABT) announced its second-quarter 2022 results on July 20. The reported EPS of $1.43 topped the analyst estimates by 25.29%, representing a 22.2% YoY growth. The company generated a revenue of $11.26 billion, outperforming the estimates of $10.40 billion by $856.54 million. The revenues for the quarter showed 10.1% YoY growth. Moreover, organic sales increased by 14.3% YoY.

Out of the four segments of Abbott Laboratories (NYSE:ABT), diagnostic products reported the highest organic growth at 36.9%. Diabetes care products’ sales increased by 19.4% on a YoY basis, followed by established pharmaceuticals at 9.2%, and medical devices’ organic sales improved by 7.5%. Nutrition products sales went down by 4.5% on an organic basis. In addition, Abbott Laboratories (NYSE:ABT)’s gross profit represented a 19.9% YoY growth to $6.32 billion, while the gross margins surged to 56.2%.

Abbott Laboratories (NYSE:ABT) raised its 2022 EPS guidance after the Q2 reports. The full-year adjusted earnings from continuing operations are expected to be at least $4.90. Priorly, it was expected to be at least $4.70.

Here is what Diamond Hill Capital had to say about Abbott Laboratories (NYSE:ABT) in its first-quarter 2021 investor letter:

“Abbott Labs announced a recall of its infant formula brand Similac® in the US. Though the recall will impact near-term revenues, we are not concerned about any long-term impacts. We remain optimistic about the company’s prospects over the long run because, in our view, it is one of the highest quality names in health care with a talented management team that makes smart capital allocation decisions. Abbott also has leading health care and consumer franchises with a particularly strong competitive position in the medical device business. Abbott continues to launch innovative products in key strategic areas (such as diabetes, structural heart and diagnostics), which should help drive not only revenue growth but margin expansion.”