Abbott’s Q1 2024 Earnings: Strong Medical Device Sales Lead to Raised Financial Forecasts

Abbott Laboratories experienced a robust first quarter in 2024, driven primarily by its medical devices segment. This resulted in overall sales surpassing Wall Street forecasts and an updated, optimistic financial outlook for the year. The company reported a 2.2% increase in total sales year-over-year, reaching $10 billion, despite a 2.1% drop in domestic sales. However, international sales climbed by 5.2%.

The medical devices unit was particularly successful, posting a 14.2% growth to $4.4 billion. High-performing subcategories included diabetes care, electrophysiology, neuromodulation, and structural heart divisions, with notable revenue from the FreeStyle Libre glucose monitoring system, which surged 22.4% to $1.5 billion.

While the nutrition and pharmaceutical segments saw rises of 5.1% and 3.1%, respectively, diagnostics fell by 17.6%, affected by the dwindling demand for COVID-19 testing. Excluding COVID-19 impacts, diagnostic sales grew by 5%. Overall organic sales growth stood at 4.7%, but excluding COVID-related products, it reached 10.8%.

Abbott’s adjusted earnings per share (EPS) also exceeded expectations at $0.98, prompting an upward revision of the full-year EPS forecast to between $4.55 and $4.70 and organic sales growth forecasts to 8.5% and 10%. The quarter included significant developments such as the launch of Protality brand nutrition shakes, the FDA’s approval of the TriClip repair system for tricuspid valve leaks, and a severe recall of the HeartMate Touch System. This mix of achievements and challenges underscores Abbott’s dynamic performance and adaptive strategies in the evolving healthcare market.

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[Source: MM+M, April 17th, 2024]