Abbott Laboratories (NYSE:ABT)’s stock exploded to all-time highs after the company hit a home run with its Q4 results. Q4 Earnings and revenues topping estimates is the latest catalyst strengthening investor confidence in the biotechnology company.
Underlying Growth
The company achieved double-digit earnings per share growth despite facing one of the most challenging macro environments. It also succeeded in delivering groundbreaking innovation complemented by the strengthening of the product pipeline.
Buoyed by Fourth quarter and full-year earnings results Chief Executive Officer Robert Ford has reiterated that Abbot laboratories has what it takes to achieve a 35% EPS growth in 2021. The company reported revenues of $10.7 billion, representing a 29% year over year jump that easily topped analysts' prediction of $9.94 billion.
Stellar Results
Net income totaled $2.2 billion or $1.2 a share, double $1.1 billion or $0.59 a share reporter the prior year same quarter. Adjusted net income rose 53% to $1.45 a share against consensus estimates of $1.35 a share.
The impressive quarterly results come at the back of a perfect business environment presented by the COVID-19 pandemic. Abbot Laboratories posted a strong performance with its COVID-19 testing business as global COVID-19 testing related sales topped $2.4 billion.
The company’s overall diagnostics segment reported an 11% increase in revenue that came in at $4.3 billion largely driven by strong demand for COVID-19 tests. Other segments that posted solid gains include Nutrition sales up 3.6% to $1.9 billion as revenues from medical devices segment increase 1.7% to nearly $3.3 billion.
2021 Outlook
While the stock is up by more than 26% over the past year, the upward momentum is still intact strengthened by impressive guidance for 2021. Abbott expects EPS growth of more than 35% in 2021. Adjusted EPS is expected at about $5 a share well above $4.37 a share projected by analysts.
In addition, the company looks set to remain a firm favorite for income-focused investors in 2021. In December Abbott Laboratories boosted its payout by 25% bringing its streak of dividend hikes to 49 years.