Please ensure Javascript is enabled for purposes of website accessibility

Abbott Laboratories Shares Sink on Mixed Q1; New Dividend Declared

By Eric Volkman - Apr 20, 2021 at 4:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

COVID-testing products helped beef up revenue and profitability.

Few investors like when one of their investments posts a mixed quarter. That seemed to be the dynamic behind Abbott Laboratories (ABT -0.83%) on Tuesday, following the release of its Q1 of fiscal 2021 results.

For the quarter, the pharmaceutical-sector mainstay earned $10.5 billion in revenue, which was over 35% better than in the same period last year. Non-GAAP (adjusted) net income came in at just under $2.37 billion ($1.32 per share) -- more than double the Q1 2020 figure.

Although Abbott didn't hit the average analyst estimate of $10.69 billion on the top line, its per-share adjusted net profit beat the $1.27 forecast by those prognosticators.

Face mask on top of $100 bills.

Image source: Getty Images.

Abbott's double-digit increases were helped by sales of COVID-testing products, which collectively brought in $2.2 billion during the quarter. Zooming out, all four of the company's business units (nutrition, diagnostics, established pharmaceuticals, and medical devices) enjoyed sales increases, ranging widely from established pharmaceuticals' 2.5% to the nearly 120% of diagnostics.

This is giving Abbott the confidence to predict robust adjusted earnings growth for the full year. The company reiterated its guidance for at least $5 per share in 2021, well up from the previous-year's $3.65. Revenue guidance wasn't provided.

As for one of the company's most attractive features as a stock -- its long-standing quarterly dividend -- a new payout has been declared. The upcoming dividend of $0.45 per share will be paid on May 17 to stockholders of record as of April 15. At the most recent closing share price, it yields 1.5%.

Abbott stock closed 3.6% lower on Tuesday, a steeper fall than the 0.7% decline of the S&P 500 index.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Abbott Laboratories Stock Quote
Abbott Laboratories
$109.30 (-0.83%) $0.92

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.