What Drove Abbott's Q3?

Core Insights - Abbott reported Q3 revenues of $10.64 billion, slightly above expectations, with earnings of$1.21 per share, also exceeding estimates [1][2] - The medical devices segment experienced significant growth, while diagnostics sales declined [1][2] Financial Performance - Q3 revenue increased by 4.9% year-over-year [2] - Medical device sales surged by 11.7%, and established pharmaceuticals grew by 2.7% [2] - Diagnostics sales fell by 1.5%, and nutrition sales decreased by 0.3% [2] - Diabetes sales rose by 17% to over $1.7 billion, primarily driven by glucose monitoring products [2] - Adjusted gross margin expanded by 120 basis points year-over-year to 56.3$1.21 on an adjusted basis [2] - Full-year earnings outlook narrowed to a range of $4.64 to$4.70 [2] Stock Valuation - Abbott's stock valuation is estimated at $124 per share, reflecting a P/E ratio of 26x expected earnings of$4.68 per share in 2024 [3] - This P/E ratio is slightly above the stock's average of 25x over the past three years [3] - Despite positive results, the stock has not seen significant gains post-announcement [3]