Abbott Earnings: Base Business Off to Strong Start in 2024, Offsetting Declines in Covid Tests

Abbott posted solid first-quarter results that were largely in line with our expectations for the full year, and we’re leaving our fair value estimate unchanged. Revenue grew 5% in constant currency versus the prior-year period. As seen in earlier quarters, falling demand for covid diagnostics dragged on growth, with first-quarter diagnostics revenue down 16%. Importantly, the firm’s consolidated base business more than offset the covid softness by growing 11% year over year. We remain confident that the string of new products and pipeline programs will continue to support Abbott’s narrow economic moat.