We just heard from the largest Medical Devices stock in the world, Abbott Laboratories $ABT.
The market loved it...
Price rallied 2.76% with a sweet reaction score of 4.25. It really stood out in yesterday's broad market selloff.
Not only are their current products performing very well, but they also have a very exciting pipeline. Many of which are expected to enter the market soon.
Here's what the CEO, Robert Ford, had to say about it:
"The pipeline continues to provide a steady cadence of new growth opportunities with more than 25 key new products forecasted to launch over the next 3 years, and we remain on track to deliver on the financial commitments we set at the beginning of the year."
That's a lot of new products...
Many of which have the potential to generate billions of dollars.
Here's what Mr. Ford had to say about one of their most exciting pipeline products:
"In Neuromodulation, we began treating patients in our TRANSCEND clinical trial, a first-of-its-kind trial designed to evaluate using deep brain stimulation to address treatment-resistant depression, which represents a market opportunity exceeding $1 billion."
Sounds exciting, right?
The market certainly thinks so!
Let's talk about what else happened with their reports.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Abbott Laboratories $ABT had the best reaction score and reported mixed results.
The company reported revenues of $10.36B, versus the $10.41B estimate, and earnings per share of $1.09, versus the $1.07 estimate.
Omnicom Group $OMC had the worst reaction score and reported mixed results.
The company reported revenues of $3.69B, versus the $3.71B estimate, and earnings per share of $1.70, versus the $1.65 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
ABT had its 3rd consecutive positive earnings reaction:
Abbott Laboratories rallied 2.8% after this earnings report, and here's why:
FreeStyle Libre, their continuous glucose monitor product, generated $1.7B in revenue, a 21.6% year-over-year growth.
The market loved the update given on their recent pipeline.
The management team is managing tariff risk well, reaffirming their full-year guidance.
The fundamental story here is in great shape!
And the stock is shaping up quite nicely...
The price recently found resistance at the prior cycle high and is in the process of carving out the handle of a textbook multi-year basing pattern.
We expect ABT to continue churning sideways for the foreseeable future. If and when the stock closes above 142, the path of least resistance will shift higher.
PGR is flirting with new all-time highs:
Progressive fell -0.4% after this earnings report, and here's why:
Net premiums written grew to $74.4B in 2024, a 21% increase.
They continue to streamline operations and claims processing through a variety of new technologies
The management team is expecting 2025 to be another record-setting year.
The insurance business is booming...
And the stock is flirting with new all-time highs...
As you can see, the price has been in a sweet uptrend since gapping to new all-time highs after its Q4 2023 earnings report. We see no reason for that to change...
If PGR is below 274, the path of least resistance is higher for the foreseeable future.
Thank you for reading.
- The Beat Report Team
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