Why Abbott stock soared today
stock Abbott Laboratories (ABT +10.71%) It came after the health care products provider on Thursday raised its full-year revenue forecast.
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Intelligent acquisitions fuel Abbott’s growth
Abbott’s second-quarter sales rose 13% to $12.6 billion, driven by the company’s $21 billion acquisition of cancer screening leader Exact Sciences in March.
This acquisition adds more prevention products to Abbott’s offering, including Cologuard, Exact’s market-leading non-invasive colorectal cancer screening test.
Abbott’s global diagnostics sales increased 42.3% to $3.1 billion.
today’s change
(10.71%) $9.56
current price
$98.83
Key data points
market capitalization
work range
$94.99 -$101.87
52 week range
$81.97 – $137.49
volume
32.8M
average volume
13.4M
gross profit
52.84%
dividend yield
3.44%
The healthcare giant’s global medical devices revenue also rose 9% to $5.9 billion, driven by an 11% increase in sales of continuous blood glucose monitors.
Overall, Abbott’s adjusted earnings rose 4% to $1.31 per share. That beat Wall Street expectations, which had called for a profit of $1.28 per share.
Higher profits mean bigger dividends for investors.
Going forward, Abbott expects annual comparable sales to grow 6.5% to 7.5% in 2026. Management also raised its adjusted earnings-per-share outlook to between $5.45 and $5.60, up from its previous forecast of $5.38 and $5.58.
Abbott’s strengthening profitability will allow it to reward shareholders with steadily increasing cash payouts. The medical devices and testing leader has raised its dividend for a remarkable 54 consecutive years.
Joe Tenebruso has no positions in any of the stocks mentioned. The Motley Fool has a position at and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.
