Let’s dig into the relative performance of Abbott Laboratories (NYSE: ABT) and its peers as we unravel the now-completed Q4 medical devices & supplies - diversified earnings season.
The medical devices industry operates a business model that balances steady demand with significant investments in innovation and regulatory compliance. The industry benefits from recurring revenue streams tied to consumables, maintenance services, and incremental upgrades to the latest technologies. However, the capital-intensive nature of product development, coupled with lengthy regulatory pathways and the need for clinical validation, can weigh on profitability and timelines. In addition, there are constant pricing pressures from healthcare systems and insurers maximizing cost efficiency. Over the next several years, one tailwind is demographic–aging populations means rising chronic disease rates that drive greater demand for medical interventions and monitoring solutions. Advances in digital health, such as remote patient monitoring and smart devices, are also expected to unlock new demand by shortening upgrade cycles. On the other hand, the industry faces headwinds from pricing and reimbursement pressures as healthcare providers increasingly adopt value-based care models. Additionally, the integration of cybersecurity for connected devices adds further risk and complexity for device manufacturers.
The 6 medical devices & supplies - diversified stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.6% since the latest earnings results.
Abbott Laboratories (NYSE: ABT)
With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories (NYSE: ABT) develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals.
Abbott Laboratories reported revenues of $10.97 billion, up 7.2% year on year. This print was in line with analysts’ expectations, but overall, it was an okquarter for the company with organic revenue in line with analysts’ estimates but EPS in line with analysts’ estimates.
"We finished the year with very strong momentum. Sales growth and earnings per share growth in the fourth quarter were the highest of the year," said Robert B. Ford, chairman and chief executive officer, Abbott.
The stock is up 12.2% since reporting and currently trades at $130.98.
Read our full report on Abbott Laboratories here, it’s free.
Best Q4: Boston Scientific (NYSE: BSX)
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Boston Scientific reported revenues of $4.56 billion, up 22.4% year on year, outperforming analysts’ expectations by 3.3%. The business had a very strong quarter with EPS guidance for next quarter exceeding analysts' estimates.
Boston Scientific scored the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.3% since reporting. It currently trades at $96.93.
Is now the time to buy Boston Scientific? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: CooperCompanies (NASDAQ: COO)
With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.
CooperCompanies reported revenues of $964.7 million, up 3.6% year on year, falling short of analysts’ expectations by 1.5%. It was a slower quarter as it posted a slight miss of analysts’ organic revenue estimates.
CooperCompanies delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14.2% since the results and currently trades at $78.19.
Read our full analysis of CooperCompanies’s results here.
Neogen (NASDAQ: NEOG)
Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ: NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.
Neogen reported revenues of $231.3 million, flat year on year. This result beat analysts’ expectations by 1.4%. Overall, it was a strong quarter as it also recorded a decent beat of analysts’ EPS estimates.
Neogen had the slowest revenue growth among its peers. The stock is down 37.9% since reporting and currently trades at $8.13.
Read our full, actionable report on Neogen here, it’s free.
Stryker (NYSE: SYK)
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Stryker reported revenues of $6.44 billion, up 10.7% year on year. This number surpassed analysts’ expectations by 1.4%. It was a strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
The stock is down 8.1% since reporting and currently trades at $363.01.
Read our full, actionable report on Stryker here, it’s free.
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