Abbott Reports Third-Quarter 2024 Results and Raises Midpoint of Full-Year EPS Guidance Range
Sales of $10.6 billion driven by strong underlying base business performance
Reported sales growth of 4.9 percent; organic sales growth for underlying base business of 8.2 percent1, led by double-digit growth in Medical Devices
Continues to strengthen portfolio with steady cadence of new product approvals, reimbursement coverage, and clinical data
ABBOTT PARK, Ill., Oct. 16, 2024 /PRNewswire/ -- Abbott (NYSE:ABT) today announced financial results for the third quarter ended Sept. 30, 2024.
Third-quarter GAAP diluted EPS of $0.94 and adjusted diluted EPS of $1.21, which excludes specified items.
Abbott maintains its full-year 2024 organic sales growth guidance range of 9.5% to 10.0%, excluding COVID-19 testing-related sales2.
Abbott now projects full-year diluted EPS on a GAAP basis of $3.34 to $3.40 and projects adjusted diluted EPS of $4.64 to $4.70, which represents an increase at the midpoint of the guidance range.
In October, Abbott's board of directors authorized a new share repurchase program of up to $7 billion of the company's common shares.
In August, Abbott announced a unique global partnership with Medtronic to collaborate on connecting Abbott's world-leading continuous glucose monitoring (CGM) system with Medtronic's insulin delivery devices.
In September, Abbott announced the U.S. launch of Lingo™, the company's first continuous glucose monitoring system available without a prescription and designed for people interested in improving their overall health and wellness.
In September, Abbott announced a partnership with the Big Ten Conference® to conduct a nationwide blood donation competition to help increase the U.S. blood supply.
In September, Abbott completed enrollment ahead of schedule in its VOLT-AF IDE trial, which is designed to evaluate the Volt™ Pulsed Field Ablation (PFA) System for treating patients with heart rhythm disorders such as atrial fibrillation (AFib).
"Our results this quarter demonstrate the strength of our diversified business model," said Robert B. Ford, chairman and chief executive officer, Abbott. "We're well-positioned to achieve the upper end of our initial guidance ranges for the year and have great momentum heading into next year."
THIRD-QUARTER BUSINESS OVERVIEWManagement believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange and the impact of discontinuing the ZonePerfect® product line in the Nutrition business, is an appropriate way for investors to best understand the core underlying performance of the business. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand underlying base business performance as the COVID-19 pandemic has shifted to an endemic state, resulting in significantly lower demand for COVID-19 tests.
Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total Company
Nutrition
Diagnostics
EstablishedPharmaceuticals
Medical Devices
U.S.
4,202
950
1,032
—
2,216
International
6,433
1,116
1,380
1,406
2,531
Total reported
10,635
2,066
2,412
1,406
4,747
% Change vs. 3Q23
U.S.
10.1
10.4
1.8
n/a
14.2
International
1.7
(7.9)
(3.8)
2.7
9.6
Total reported
4.9
(0.3)
(1.5)
2.7
11.7
Impact of foreign exchange
(2.5)
(3.1)
(2.9)
(4.3)
(1.6)
Impact of business exit*
(0.2)
(0.6)
—
—
—
Organic
7.6
3.4
1.4
7.0
13.3
Impact of COVID-19 testing sales (3)
(0.6)
—
(1.9)
—
—
Organic (excluding COVID-19 tests)
8.2
3.4
3.3
7.0
13.3
U.S.
11.0
11.9
2.4
n/a
14.2
International
6.5
(2.6)
3.8
7.0
12.5
First Nine Months 2024 Results (9M24)
Sales 9M24 ($ in millions)
Total Company
Nutrition
Diagnostics
Established Pharmaceuticals
Medical Devices
U.S.
11,982
2,761
2,775
—
6,435
International
18,994
3,523
4,046
3,926
7,499
Total reported
30,976
6,284
6,821
3,926
13,934
% Change vs. 9M23
U.S.
4.2
8.1
(16.2)
n/a
14.3
International
3.4
(1.1)
(2.4)
2.1
10.1
Total reported
3.7
2.7
(8.5)
2.1
12.0
Impact of foreign exchange
(3.0)
(3.1)
(2.9)
(7.3)
(1.6)
Impact of business exit and acquisition*
0.1
(0.4)
—
—
0.4
Organic
6.6
6.2
(5.6)
9.4
13.2
Impact of COVID-19 testing sales (3)
(2.8)
—
(10.4)
—
—
Organic (excluding COVID-19 tests)
9.4
6.2
4.8
9.4
13.2
U.S.
10.0
9.0
3.0
n/a
13.3
International
9.0
4.2
5.9
9.4
13.1
Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.
*Quarter to date Sept. 30, 2024, reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024. Year to date Sept. 30, 2024, reflects the impact of discontinuing the ZonePerfect product line in the Nutrition business in March 2024 and the acquisition of CSI on April 27, 2023. Organic sales growth excludes the impact of the acquired business from January through April 2024.
Nutrition
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total
Pediatric
Adult
U.S.
950
568
382
International
1,116
387
729
Total reported
2,066
955
1,111
% Change vs. 3Q23
U.S.
10.4
12.2
7.9
International
(7.9)
(21.6)
1.5
Total reported
(0.3)
(4.5)
3.6
Impact of foreign exchange
(3.1)
(1.8)
(4.4)
Impact of business exit*
(0.6)
—
(1.1)
Organic
3.4
(2.7)
9.1
U.S.
11.9
12.2
11.5
International
(2.6)
(18.0)
8.0
Worldwide Nutrition sales decreased 0.3 percent on a reported basis and increased 3.4 percent on an organic basis in the third quarter, led by growth in Adult Nutrition.
In Adult Nutrition, global sales increased 3.6 percent on a reported basis and 9.1 percent on an organic basis, which was led by growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand.
First Nine Months 2024 Results (9M24)
Sales 9M24 ($ in millions)
Total
Pediatric
Adult
U.S.
2,761
1,646
1,115
International
3,523
1,377
2,146
Total reported
6,284
3,023
3,261
% Change vs. 9M23
U.S.
8.1
11.8
3.2
International
(1.1)
(6.8)
2.8
Total reported
2.7
2.5
3.0
Impact of foreign exchange
(3.1)
(1.6)
(4.4)
Impact of business exit*
(0.4)
—
(0.7)
Organic
6.2
4.1
8.1
U.S.
9.0
11.8
5.0
International
4.2
(3.6)
9.7
*Reflects the impact of discontinuing the ZonePerfect® product line. This action was initiated in March 2024.
Diagnostics
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total
Core Laboratory
Molecular
Point of Care
RapidDiagnostics
U.S.
1,032
332
37
103
560
International
1,380
982
91
43
264
Total reported
2,412
1,314
128
146
824
% Change vs. 3Q23
U.S.
1.8
4.5
(2.8)
6.0
(0.2)
International
(3.8)
(1.5)
(3.9)
0.7
(12.2)
Total reported
(1.5)
—
(3.6)
4.4
(4.4)
Impact of foreign exchange
(2.9)
(4.3)
(1.5)
(0.2)
(1.4)
Organic
1.4
4.3
(2.1)
4.6
(3.0)
Impact of COVID-19 testing sales (3)
(1.9)
(0.2)
(3.9)
—
(3.4)
Organic (excluding COVID-19 tests)
3.3
4.5
1.8
4.6
0.4
U.S.
2.4
4.8
4.5
6.0
(1.0)
International
3.8
4.4
0.8
1.3
2.8
As expected, Diagnostics sales growth in the third quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales3. Worldwide COVID-19 testing sales were $265 million in the third quarter of 2024 compared to $305 million in the third quarter of the prior year.
Excluding COVID-19 testing-related sales, global Diagnostics sales increased 0.2 percent on a reported basis and increased 3.3 percent on an organic basis.
Excluding COVID-19 testing-related sales, global Core Laboratory Diagnostics sales grew 0.1 percent on a reported basis and increased 4.5 percent on an organic basis, led by continued adoption of Abbott's Alinity® family of diagnostics systems and testing portfolios.
First Nine Months 2024 Results (9M24)
Sales 9M24 ($ in millions)
Total
Core Laboratory
Molecular
Point of Care
Rapid Diagnostics
U.S.
2,775
969
112
308
1,386
International
4,046
2,879
272
133
762
Total reported
6,821
3,848
384
441
2,148
% Change vs. 9M23
U.S.
(16.2)
5.6
(12.3)
6.6
(29.8)
International
(2.4)
0.3
(7.2)
4.8
(10.6)
Total reported
(8.5)
1.5
(8.7)
6.0
(24.0)
Impact of foreign exchange
(2.9)
(4.8)
(0.8)
(0.1)
(1.1)
Organic
(5.6)
6.3
(7.9)
6.1
(22.9)
Impact of COVID-19 testing sales (3)
(10.4)
(0.2)
(6.3)
—
(25.0)
Organic (excluding COVID-19 tests)
4.8
6.5
(1.6)
6.1
2.1
U.S.
3.0
5.9
(3.3)
6.6
(0.1)
International
5.9
6.7
(0.9)
5.1
5.7
Established Pharmaceuticals
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total
Key EmergingMarkets
Other
U.S.
—
—
—
International
1,406
994
412
Total reported
1,406
994
412
% Change vs. 3Q23
U.S.
n/a
n/a
n/a
International
2.7
0.7
8.1
Total reported
2.7
0.7
8.1
Impact of foreign exchange
(4.3)
(4.7)
(3.1)
Organic
7.0
5.4
11.2
U.S.
n/a
n/a
n/a
International
7.0
5.4
11.2
Established Pharmaceuticals sales increased 2.7 percent on a reported basis and 7.0 percent on an organic basis in the third quarter.
Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 0.7 percent on a reported basis and increased 5.4 percent on an organic basis, led by growth in several geographies and therapeutic areas, including gastroenterology, cardiometabolic, and central nervous system/pain management.
First Nine Months 2024 Results (9M24)
Sales 9M24 ($ in millions)
Total
Key EmergingMarkets
Other
U.S.
—
—
—
International
3,926
2,910
1,016
Total reported
3,926
2,910
1,016
% Change vs. 9M23
U.S.
n/a
n/a
n/a
International
2.1
0.7
6.4
Total reported
2.1
0.7
6.4
Impact of foreign exchange
(7.3)
(9.0)
(2.2)
Organic
9.4
9.7
8.6
U.S.
n/a
n/a
n/a
International
9.4
9.7
8.6
Medical Devices
Third Quarter 2024 Results (3Q24)
Sales 3Q24 ($ in millions)
Total
Rhythm Management
Electro-
physiology
HeartFailure
Vascular
StructuralHeart
Neuro-modulation
DiabetesCare
U.S.
2,216
288
285
252
258
270
190
673
International
2,531
309
325
70
441
288
46
1,052
Total reported
4,747
597
610
322
699
558
236
1,725
% Change vs. 3Q23
U.S.
