Abbott Laboratories Clocks Strong Q2 Growth In Underlying Base Business, Reaffirms FY23 Outlook

Abbott Laboratories ABT has reported Q2 FY23 adjusted EPS of $1.08, down 25% Y/Y, beating the consensus of $1.05. Q2 sales of $9.97 billion decreased 11.4%, beating the consensus of $9.70 billion.

Organic sales growth for the underlying base business was 11.5%, led by Medical Devices, Established Pharmaceuticals, and Nutrition.

Diagnostics sales growth was negatively impacted by year-over-year declines in COVID-19 testing-related sales. Worldwide COVID-19 testing sales were $263 million in the second quarter of 2023 compared to $2.324 billion a year ago.

Worldwide Nutrition sales increased by 6.3% on a reported basis and 9.9% on an organic basis to $2.08 billion.

"We're achieving strong growth in our underlying base business," said Robert B. Ford, chairman and chief executive officer.

"We expect our highly productive pipeline to sustain the momentum we're building this year and position us well for growth in the future."

Worldwide Medical Devices sales increased 13.5% on a reported basis and 14.2% on an organic basis, led by double-digit organic growth in Diabetes Care, Electrophysiology, Structural Heart, and Neuromodulation.

Also Read: Abbott Scores FDA Nod For First Dual-Chamber Leadless Pacemaker To Treat Abnormal, Slow Heart Rhythms

Outlook: Abbott Reaffirms FY23 adjusted EPS of $4.30 - $4.50 vs. consensus of $4.40. The guidance reflects an increased outlook for the underlying base business offset by a lower forecasted earnings contribution from COVID-19 testing-related sales.

Abbott projects FY23 organic sales growth, excluding COVID-19 testing-related sales, to be in the low double-digits and COVID-19 testing-related sales of approximately $1.3 billion.

Price Action: ABT shares are up 0.67% at $108.00 during the premarket session on the last check Thursday.