Abbott Laboratories (NYSE: NYSE:) has reported its financial results for the second quarter of 2024, showcasing a steady performance driven by its underlying base business.
The company recorded sales of $10.4 billion for the quarter, marking a 4.0% increase from the same period last year.
The organic sales growth, excluding COVID-19 testing-related sales, was 9.3%, led by a robust performance in the Medical Devices segment, which saw double-digit growth.
The company’s GAAP diluted earnings per share (EPS) for the quarter stood at $0.74, while the adjusted diluted EPS, excluding specified items, was $1.14. This adjusted figure surpasses market expectations of $1.11.
Abbott’s CEO, Robert B. Ford, attributed the strong performance to the company’s diversified portfolio and recent product approvals, which have bolstered its market position.
The company’s operational earnings increased by 8.2%, reflecting efficient cost management and strategic investments in high-growth areas.
Abbott Labs Exceeds EPS and Revenue Expectations in Q2
When comparing Abbott’s current performance against market expectations, the company has exceeded revenue projections.
Analysts had anticipated revenue of $10.37 billion, but Abbott reported $10.4 billion, slightly above the forecast. The adjusted EPS of $1.14 also surpassed the expected $1.11, indicating stronger-than-anticipated profitability.
Segment-wise, Medical Devices led the growth with a 10.2% increase in reported sales and 12.1% organic growth, driven by new product launches and strong demand for diabetes care solutions like FreeStyle Libre.
However, the Diagnostics segment declined due to reduced COVID-19 testing sales, which fell from $263 million in Q2 2023 to $102 million in Q2 2024.
Excluding COVID-19 sales, the Diagnostics segment still showed 5.9% organic growth, highlighting the strength of Abbott’s core diagnostic products.
Abbott Expects Full-Year GAAP Diluted EPS Between $3.30 and $3.40
Looking ahead, Abbott has raised its full-year 2024 guidance, reflecting confidence in its continued growth trajectory.
The company now projects full-year GAAP diluted EPS between $3.30 and $3.40, up from the previous guidance. The adjusted diluted EPS is expected to be between $4.61 and $4.71, indicating a positive outlook for the remainder of the year.
This adjustment is based on the robust performance of the first half of the year and the anticipated momentum in the second half.
Additionally, Abbott has narrowed its full-year organic sales growth guidance, excluding COVID-19 testing-related sales, to a range of 9.5% to 10.0%.
This refined guidance suggests an increase at the midpoint of the range, reinforcing the company’s strategic focus on its core business areas. Recent approvals and launches, such as the Esprit BTK system for peripheral artery disease and new continuous glucose monitoring systems, are expected to contribute significantly to the growth.
For the third quarter of 2024, Abbott forecasts GAAP diluted EPS to be between $0.85 and $0.89, with adjusted diluted EPS projected to be in the range of $1.18 to $1.22.
The company also declared a quarterly dividend of $0.55 per share, continuing its long-standing tradition of returning value to shareholders.
Analysis: Abbott Laboratories has shown strong performance in the second quarter of 2024, exceeding market expectations in terms of revenue and profitability. The company’s focus on its core business areas, such as Medical Devices, has driven growth, while strategic investments and product approvals have bolstered its market position. With an optimistic outlook for the remainder of the year and a commitment to shareholder value, Abbott Labs is poised for continued success in the future.