Abbott’s Mixed Earnings: Growth in Medical Devices Amid Overall Decline and Future Projections

January 24, 2024

Abbott’s latest earnings report revealed mixed results. In Q4 2023, the company’s net sales rose 1.5% to $10.2 billion, driven by a 17.5% increase in medical device sales and double-digit growth in nutrition. Despite this, the diagnostics division experienced a 22.7% sales decline and established pharmaceuticals saw a marginal 0.5% increase. Excluding COVID-19 test sales, Abbott reported 11% organic sales growth for the quarter. However, annual net sales dropped 8.1% to $40.1 billion due to a 39.4% fall in diagnostics sales due to reduced demand for COVID-19 products. The company still achieved an 11.6% increase in organic sales, excluding COVID tests. Abbott ended 2023 with an EPS of $3.26, surpassing its earlier guidance, and an adjusted EPS of $4.44, within the forecasted range.

For 2024, Abbott forecasts 8-10% organic sales growth, excluding COVID-19 sales, and anticipates an EPS between $3.20 and $3.40. The company expects specific expenses, including amortization and restructuring costs, to impact earnings by $1.30 per share. Despite these projections, Abbott’s stock fell over 3% following the announcement.

CEO Robert B. Ford remains optimistic, citing the company’s diverse portfolio and a robust pipeline for future growth. Additionally, Abbott launched celebrity-led awareness campaigns last quarter, including Damar Hamlin promoting the HeartMates program and Sherri Shepherd involved in a diabetes awareness event.

To read more, click here.

[Source: MM+M, January 24th, 2024]

Share This Story!