thitimon toyai/iStock via Getty Images Foreword This article is based on Fortune magazine’s 2024 survey of 500 Largest U.S. Corporations (F500-IL) (subscription required) “The Fortune 500, in its 70th year, ranks the biggest U.S. companies by revenue. In total, Fortune 500 companies represent two-thirds of the U.S. GDP with $18.8 trillion in revenues, $1.7 trillion in profits, and $43 trillion in market value (as of March 28, 2024), and they employ 31 million people worldwide.” This article covers the t ...

A jury on Friday found that Abbott Laboratories’ specialized formula for premature infants caused an Illinois girl to develop a dangerous bowel disease, ordering the healthcare company to pay $495 million in damages.The verdict in St. Louis, Missouri state court comes in the first trial against the company out of hundreds of similar claims over the formula pending in courts around the country, which Reuters viewed via Courtroom View Network.Illinois resident Margo Gill, who brought the case against Abbott, ...

An exhibit from Abbott is seen at the Las Vegas Convention Center during the Consumer Electronics ... [+] Show January 10, 2024, in Las Vegas, Nevada. (Photo by Brendan Smialowski / AFP) (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images)AFP via Getty ImagesAbbott (NYSE: ABT) recently reported its Q2 results, with revenues and earnings exceeding our expectations. The company reported revenue of $10.4 billion and earnings of $1.14 on a per-share and adjusted basis, compared to our estimates of $10.3 billion a ...

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Key TakeawaysSales at Abbott Laboratories' diagnostics unit dropped in the second quarter as demand for COVID-19 tests slumped.The company beat profit and sales estimates on strong sales of its medical devices.Abbott raised its full-year profit and organic sales growth outlooks. Shares of Abbott Laboratories (ABT) declined in intraday trading Thursday as the healthcare products maker’s sales of COVID-19 tests slumped with the pandemic ending. The company reported second-quarter adjusted earnings per share ( ...

Financial Data and Key Metrics Changes - The company reported organic sales growth of more than 9%, excluding COVID testing sales, and adjusted earnings per share of $1.14, representing a 16% sequential increase from the first quarter [7][21]. - Full-year organic sales growth guidance was raised to 9.5% to 10%, with adjusted earnings per share forecasted in the range of $4.61 to $4.71 [7][22]. Business Line Data and Key Metrics Changes - Nutrition sales increased by 7.5%, driven by double-digit growth in international adult nutrition and U.S. pediatric nutrition [9]. - Diagnostics sales grew by 6%, with high single-digit growth in core laboratory diagnostics and double-digit growth in point-of-care diagnostics [12]. - Established Pharmaceuticals Division (EPD) sales increased by 8%, supported by favorable demographic trends in emerging markets [13][14]. - Medical devices sales grew by 12%, with Freestyle Libre sales reaching $1.6 billion and growing by 20% [15]. Market Data and Key Metrics Changes - The U.S. dollar strengthened against several currencies, resulting in a 3.5% unfavorable impact on second-quarter sales due to foreign exchange [21]. - The diagnostics market continues to see growth through increased adoption of market-leading systems and extensive testing menus [12]. Company Strategy and Development Direction - The company is focused on broad-based growth across its portfolio, with a particular emphasis on medical devices and nutrition [8]. - Biosimilars have been identified as a new strategic growth pillar for EPD, with plans to launch several products in oncology and women's health by 2025 [14]. - The company aims to leverage its leadership position in emerging markets to expand access to healthcare [13]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong results for the remainder of the year, citing a productive pipeline and ongoing gross margin initiatives [19]. - The management team emphasized the importance of innovation and market share gain in sustaining growth, particularly in the CRM and vascular segments [52][74]. Other Important Information - The company is actively managing litigation related to pre-term infant formula and human milk fortifier, asserting the safety and necessity of its products [10][11]. - The adjusted gross margin ratio was reported at 56% of sales, with adjusted R&D at 6.3% and adjusted SG&A at 27.7% [21]. Q&A Session Summary Question: Comments on NEC litigation - Management reiterated their position on the NEC litigation, stating it is overblown and they are working to defend their position [24]. Question: EPD business growth drivers - The EPD business is experiencing growth due to an overall market acceleration, with a focus on price and new product introductions [25][28]. Question: Structural heart growth and product performance - Growth in structural heart is broad-based, with significant contributions from TriClip and other products like Navitor and Amulet [30][32]. Question: Market segmentation for diabetes products - The company is focusing on expanding the use of sensor technology across different diabetes populations and non-diabetics, with significant growth potential [36][38]. Question: Capital allocation and M&A environment - The company maintains a balanced approach to capital allocation, focusing on internal growth opportunities while remaining open to strategic M&A [66][69].

Earnings and Revenue Performance - Abbott Laboratories reported Q2 2024 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 3.6% and increasing 5.6% YoY [1] - GAAP EPS was 74 cents, down 5.1% YoY [1] - Worldwide sales reached $10.38 billion, up 4% YoY on a reported basis and exceeding the Zacks Consensus Estimate by 0.3% [1] - Organic sales grew 7.4% YoY, with a 9.3% increase excluding COVID-19 testing sales [1] Segment Performance - Established Pharmaceuticals sales increased 0.6% on a reported basis (8.1% organic) to $1.29 billion, with 8.8% organic growth in emerging markets [2] - Medical Devices sales rose 10.2% on a reported basis (12.1% organic) to $4.73 billion, driven by double-digit growth in Diabetes Care, Electrophysiology, and Structural Heart [2] - Diabetes Care organic sales grew 18.2% YoY, with FreeStyle Libre contributing $1.6 billion in revenue [3] - Structural Heart sales increased 15.6%, while Heart Failure sales grew 8.9% organically [3] - Nutrition sales rose 3.5% on a reported basis (7.5% organic) to $2.15 billion, with Adult Nutrition sales up 9.9% organically [5] - Diagnostics sales declined 5.3% on a reported basis (1.5% organic) to $2.20 billion, with Core Laboratory Diagnostics up 8.6% organically but Rapid Diagnostics down 19.8% [5] Margins and Expenses - Gross profit increased 5.1% YoY to $5.77 billion, with gross margin expanding 57 bps to 55.6% [6] - Selling, general, and administration expenses rose 7.2% YoY to $2.94 billion, while R&D expenses fell 2.4% to $698 million [6] - Adjusted operating profit grew 4.9% YoY to $2.14 billion, with the adjusted operating margin expanding 18 bps to 20.6% [6] 2024 Guidance - Full-year adjusted EPS guidance updated to $4.61-$4.71 (previously $4.55-$4.70), with the Zacks Consensus Estimate at $4.62 [7] - Full-year organic sales growth, excluding COVID-19 testing, expected at 9.5%-10% (previously 8.5%-10%), with the Zacks Consensus Estimate for sales at $41.66 billion [7] R&D and Product Developments - Abbott announced 10 new growth opportunities from its R&D pipeline in H1 2024, including new product approvals and treatment indications [8] - Notable developments include CE Mark approval for the AVEIR dual chamber leadless pacemaker system, FDA clearance for two new over-the-counter continuous glucose monitoring systems, and FDA approval of the Esprit below-the-knee system [8] Industry Comparison - Globus Medical reported Q1 2024 EPS of 72 cents, beating estimates by 30.9%, with revenues of $606.7 million topping estimates by 3.4% [10] - Insulet reported Q1 2024 earnings of 73 cents, surpassing estimates by 87.2%, with revenues of $441.7 million exceeding estimates by 4.3% [11] - Haemonetics reported fiscal 2024 Q4 adjusted EPS of 90 cents, beating estimates by 2.3%, with revenues of $343.3 million exceeding estimates by 5% [11]

Abbott (ABT) came out with quarterly earnings of $1.14 per share, beating the Zacks Consensus Estimate of $1.10 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.64%. A quarter ago, it was expected that this maker of infant formula, medical devices and drugs would post earnings of $0.96 per share when it actually produced earnings of $0.98, delivering a surprise of 2.08%.Over the l ...

The stock market is a place where investors buy and sell shares of publicly traded companies. It offers opportunities for individuals and institutions to invest in various sectors of the economy. The market’s performance is influenced by economic conditions, company earnings, and global events. Investing in stocks can provide potential for capital growth and income through dividends. However, it also carries risks, including market volatility and potential loss of investment.The healthcare sector is a signi ...