Analyst Note| Debbie S. Wang |
On the whole, narrow-moat Abbott delivered strong second-quarter results against a weak prior-year period, and the minor adjustments we’ve made in our projections were not material enough to shift our fair value estimate. When peeking under the hood, there was a mix of dynamics related to the pandemic that exerted both positive and negative effects on Abbott’s range of businesses. Quarterly revenue rose 35% on an organic basis year over year. However, gross margin fell in the second quarter. Based on management’s comments about friction points in the supply chain, we anticipate this could put pressure on profitability through the near term.