On July 18, 2024, Abbott Laboratories (ABT, Financial) released its 8-K filing for the second quarter of 2024. Abbott, a global healthcare leader, manufactures and markets cardiovascular and diabetes devices, nutritional products, diagnostic equipment, and branded generic drugs. The company derives approximately 60% of its sales outside the United States.
Performance Overview
Abbott Laboratories reported second-quarter GAAP diluted EPS of $0.74 and adjusted diluted EPS of $1.14, surpassing the analyst estimate of $1.11. However, the reported revenue of $10.377 billion slightly missed the estimated $10.380 billion. The company raised its full-year 2024 EPS guidance range, projecting GAAP diluted EPS of $3.30 to $3.40 and adjusted diluted EPS of $4.61 to $4.71.
Key Financial Achievements
Abbott's second-quarter sales growth was driven by a strong performance in its Medical Devices segment, which saw a 10.2% increase in reported sales and a 12.1% increase on an organic basis. The company also reported double-digit growth in Diabetes Care, Electrophysiology, and Structural Heart.
We achieved another quarter of strong growth in our underlying base business," said Robert B. Ford, chairman and chief executive officer, Abbott. "We have a lot of positive momentum heading into the second half of the year and are raising our full-year guidance."
Income Statement Highlights
| Segment | Q2 2024 Sales ($ in millions) | % Change vs. Q2 2023 |
|---|---|---|
| Total Company | 10,377 | 4.0% |
| Nutrition | 2,150 | 3.5% |
| Diagnostics | 2,195 | -5.3% |
| Established Pharmaceuticals | 1,294 | 0.6% |
| Medical Devices | 4,734 | 10.2% |
Analysis of Performance
Abbott's performance in the second quarter highlights the company's resilience and ability to drive growth in its core business segments. The Medical Devices segment, in particular, showed robust growth, supported by new product approvals and strong market adoption. The company's ability to exceed EPS estimates while slightly missing revenue projections indicates effective cost management and operational efficiency.
Despite challenges in the Diagnostics segment, primarily due to a decline in COVID-19 testing-related sales, Abbott's diversified portfolio and strong performance in other segments have helped mitigate the impact. The company's raised full-year guidance reflects confidence in its growth trajectory and strategic initiatives.
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Explore the complete 8-K earnings release (here) from Abbott Laboratories for further details.
