Abbott(ABT)2024-10-16 11:37Financial Performance - Abbott reported third-quarter 2024 sales of $10.6 billion, reflecting a 4.9% increase year-over-year, with organic sales growth of 8.2% driven by double-digit growth in Medical Devices[1][2] - The company achieved a GAAP diluted EPS of $0.94 and an adjusted diluted EPS of $1.21 for the third quarter, with full-year diluted EPS guidance raised to a range of $3.34 to $3.40[2][3] - Abbott's U.S. sales increased by 10.1% to $4.2 billion, while international sales grew by 1.7% to $6.4 billion, with total reported sales of $10.6 billion[4] - Total reported sales for the first nine months of 2024 were $6.821 billion, representing an 8.5% decrease compared to the same period in 2023[12] - Net sales for Q3 2024 reached $10,635 million, a 4.9% increase compared to $10,143 million in Q3 2023[30] - Operating earnings for Q3 2024 were $1,859 million, reflecting a 12.8% increase from $1,647 million in Q3 2023[30] - Net earnings for Q3 2024 were $1,646 million, up 14.6% from $1,436 million in Q3 2023[30] - For the nine months ended September 30, 2024, net sales totaled $30,976 million, a 3.7% increase from $29,868 million in the same period of 2023[34] Segment Performance - The Medical Devices segment reported a 11.7% increase in sales, reaching $4.7 billion, while Diagnostics sales decreased by 1.5% to $2.4 billion[4][10] - Abbott's Nutrition segment saw total sales of $2.1 billion, with U.S. sales up 10.4% and international sales down 7.9%[7][9] - Established Pharmaceuticals sales increased 2.7% on a reported basis and 7.0% on an organic basis in the third quarter of 2024, totaling $1.406 billion[13] - Worldwide Medical Devices sales increased 11.7% on a reported basis and 13.3% on an organic basis in the third quarter, totaling $4.747 billion[16] - Diabetes Care sales exceeded $1.6 billion, growing 19.1% on a reported basis and 20.7% on an organic basis[17] Guidance and Projections - The company maintains its full-year 2024 organic sales growth guidance of 9.5% to 10.0%, excluding COVID-19 testing-related sales[2][3] - Abbott projects full-year 2024 diluted earnings per share under GAAP of $3.34 to $3.40, with adjusted diluted earnings per share projected at $4.64 to $4.70[19] Shareholder Returns - Abbott declared a quarterly dividend of $0.55 per share, marking 403 consecutive quarterly dividends and 52 years of increased payouts[20] - Abbott's board authorized a new share repurchase program of up to $7 billion[2][3] Research and Development - Research and development expenses for Q3 2024 were $713 million, up 6.1% from $672 million in Q3 2023[30] - Research and Development (R&D) expenses for 9M24 were $2.014 billion, slightly down from $1.897 billion in 9M23, reflecting a decrease of 6.2%[42] COVID-19 Impact - COVID-19 testing sales decreased to $265 million in Q3 2024 from $305 million in the same quarter last year, impacting overall Diagnostics sales growth[10] - Excluding COVID-19 testing-related sales, global Core Laboratory Diagnostics sales grew 0.1% on a reported basis and increased 4.5% on an organic basis[11] Cost and Expenses - The company reported a total operating cost and expenses of $8,776 million for Q3 2024, a 3.3% increase from $8,496 million in Q3 2023[30] - The company recognized net after-tax charges of $473 million in Q3 2024 related to intangible amortization and other expenses[32] Future Outlook - The company anticipates continued compliance costs related to the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR)[59] - Future outlook includes ongoing restructuring and cost reduction initiatives, with a focus on improving operational efficiency and profitability[62]