Abbott Laboratories Q2 Earnings: Revenue And Profit Beat Estimates, Nudges Up Annual Profit Guidance On Strong Medical Devices Growth

On Thursday, Abbott Laboratories ABT reported second-quarter sales of $10.38 billion, up 4%, almost in line with the consensus of $10.37 billion.

Organic sales growth for the underlying base business was 9.3%, led by double-digit growth in Medical Devices.

Abbott’s adjusted diluted earnings per share was $1.14, beating the analyst estimates of $1.10.

Medical Devices sales increased 10.2% to $4.73 billion and 12.1% organically in the second quarter, including double-digit organic growth in the U.S. and internationally. Sales growth was led by double-digit growth in Diabetes Care, Electrophysiology, and Structural Heart.

Year-over-year declines in COVID-19 testing-related sales negatively impacted diagnostics sales growth in the second quarter. Sales reached $2.19 billion, down 5.3% (-1.5% organically).

Worldwide COVID-19 testing sales were $102 million in the second quarter of 2024 compared to $263 million a year ago.

Nutrition sales increased 3.5% to $2.15 billion (+7.5% organically).

In June, Abbott announced FDA approval for two new over-the-counter continuous glucose monitoring systems: Lingo and Libre Rio. These systems are based on Abbott’s FreeStyle Libre continuous glucose monitoring technology.

During the first half of 2024, Abbott announced ten new growth opportunities from the company’s pipeline.

Guidance: Abbott projects full-year 2024 GAAP EPS of $3.30-$3.40 versus prior guidance of $3.25-$3.40, primarily related to intangible amortization, restructuring and cost reduction initiatives and other net expenses.

The company forecasts adjusted EPS of $4.61-$4.71 versus the prior guidance of $4.55-$4.70 and consensus of $4.63.

Price Action: At the last check on Thursday, ABT shares were down 2.52% at $102.04.

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