Abbott Q2 earnings beat and raised guidance

What happened: Abbott Laboratories (NYSE: ABT) shares surged 11% on July 21, 2022, following its Q2 2022 earnings report. The healthcare company posted adjusted diluted EPS of $1.31, surpassing estimates of $1.26. Abbott also raised its full-year 2022 adjusted EPS guidance to $5.28-$5.38, from its previous outlook of $5.20-$5.30. This marks Abbott's 54th consecutive year of dividend increases.

Market impact: The strong earnings and raised guidance drove investor confidence in Abbott's medical devices and diagnostic tests segments. This positively impacted the broader healthcare sector, with other medical device and diagnostics companies seeing slight gains. The dividend increase also attracted income-oriented investors, further boosting ABT's share price.

What to watch next: Abbott's Q3 2022 earnings report, scheduled for October 19, 2022, will be crucial to monitor the sustainability of its growth momentum. Additionally, investors should keep an eye on any regulatory updates regarding Abbott's pipeline products, particularly its FreeStyle Libre 3 system, which is awaiting FDA approval. Lastly, the upcoming Q2 earnings from Abbott's competitors, such as Medtronic (NYSE: MDT) and Danaher (NYSE: DHR), will provide further context for ABT's performance.