ABT - Embedded Expectations Analysis - 2020 06 16
Abbott Laboratories (ABT:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 33.2x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is confident about coronavirus testing, FreeStyle Libre value proposition, and their manufacturing processesSpecifically, management generated an excitement marker when saying the spread of coronavirus is more contained. Moreover, they are confident about the value proposition of FreeStyle Libre and that their coronavirus tests are less restrictive by not forcing people to go to labs or hospitals. In addition, they are confident they are selling their ID NOW COVID products at similar prices to other ID NOW tests, that they sell coronavirus test directly to their customers, and that they can get people and hospitals back to work using their testing and cardiovascular devices. Moreover, they are confident their highly automated and precise manufacturing processes allow them to achieve adequate product performance and reliability
Abbott Laboratories is engaged in the discovery, development, manufacture, and sale of a range of health care products. The company's reportable segments are: established pharmaceutical products, which includes a range of generic pharmaceuticals; diagnostic products, which includes a range of diagnostic systems and tests; nutritional products, which includes a range of pediatric and adult nutritional products; and medical devices, which includes a range of rhythm management, electrophysiology, heart failure, vascular and structural heart devices for the treatment of cardiovascular diseases, and diabetes care products for people with diabetes, as well as neuromodulation devices.
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