Q2 2024 Abbott Laboratories Earnings Call Transcript
Key Points
- Abbott Laboratories (ABT) reported organic sales growth of more than 9%, excluding COVID testing sales.
- Adjusted earnings per share of $1.14 exceeded analyst consensus estimates and represents a 16% sequential increase from the first quarter.
- The company raised its full-year guidance, now forecasting organic sales growth of 9.5% to 10% and adjusted earnings per share in the range of $4.61 to $4.71.
- Strong performance in medical devices with 12% sales growth, led by 20% growth in FreeStyle Libre sales.
- Gross margin expansion driven by supply chain execution, lower commodity costs, and favorable sales mix.
- Foreign exchange had an unfavorable year-over-year impact of 3.5% on second-quarter sales.
- Litigation regarding Preterm Infant formula and Human milk Fortify could pose a risk, despite the company's strong defense.
- The company faces competitive pressures in the diagnostics and medical devices sectors.
- The impact of COVID testing sales continues to decline, affecting overall revenue growth.
- Challenges in the US Pediatric Nutrition segment due to competitive activity.
Good morning and thank you for standing by. Welcome to Abbott's second quarter 2024 earnings conference call. (Operator Instructions) This call is being recorded by Abbott. (Operator Instructions)
I would now like to introduce Mr. Michael Comilla, Vice President, Investor Relations.
Good morning, and thank you for joining us. With me today are Robert Ford, Chairman and Chief Executive Officer; and Philip Boudreau, Executive Vice President, Finance and Chief Financial Officer. Robert and Phil will provide opening remarks. Following their comments, we'll take your questions.
Before we get started, some statements made today may be forward-looking for purposes of the Private Securities Litigation Reform Act of 1995, including the expected financial results for 2024. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements.
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