Key Points
Demand for Abbott's medical devices and diagnostic tests is rising.
The company has increased its dividend for 54 straight years.
Shares of Abbott Laboratories (NYSE: ABT) popped on Thursday after the healthcare products provider raised its full-year profit forecast.
Image source: Getty Images.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
An intelligent acquisition is fueling Abbott's growth
Abbott's sales rose 13% to $12.6 billion in the second quarter, boosted by its $21 billion acquisition of cancer screening leader Exact Sciences in March.
The acquisition added more preventive products to Abbott's offerings, including Exact's market-leading noninvasive colorectal cancer screening test, Cologuard.
Abbott's worldwide diagnostics sales surged 42.3% to $3.1 billion.
Revenue in the healthcare giant's worldwide medical devices division also grew by a solid 9% to $5.9 billion, driven by an 11% jump in sales of continuous glucose monitors.
All told, Abbott's adjusted earnings rose 4% to $1.31 per share. That bested Wall Street's expectations, which had called for per-share profits of $1.28.
Higher profits mean larger dividends for investors
Looking ahead, Abbott sees its full-year comparable sales growing by 6.5% to 7.5% in 2026. Management also lifted its adjusted earnings per share outlook to between $5.45 and $5.60, up from a prior forecast of $5.38 to $5.58.
Abbott's strengthening profitability enables it to reward its shareholders with steadily rising cash payments. The medical devices and testing leader has raised its dividend for a remarkable 54 straight years.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.