Abbott Stock Gains on Q3 Earnings Beat, Margins Expand

Core Insights - Abbott Laboratories reported third-quarter 2024 adjusted earnings per share (EPS) of $1.21, exceeding the Zacks Consensus Estimate by 0.8% and improving 6.1% year over year [1] - The company achieved worldwide sales of$ 10.64 billion, a 4.9% increase year over year, surpassing the Zacks Consensus Estimate by 0.7% [2] - Abbott's gross profit rose 7.2% year over year to $5.93 billion, with a gross margin expansion of 123 basis points to 55.8% [6] Financial Performance - Adjusted operating profit increased by 8.7% year over year to$ 2.33 billion, with an adjusted operating margin expanding 77 basis points to 21.9% [6] - GAAP EPS was reported at 94 cents, reflecting a 14.6% year-over-year increase [1] Segment Performance - Established Pharmaceuticals segment sales increased 2.7% on a reported basis to $1.41 billion, with organic sales growth of 7% [3] - Medical Devices segment sales rose 11.7% year over year to$ 4.75 billion, driven by strong performance in Diabetes Care and Structural Heart [3][4] - Nutrition sales decreased 0.3% year over year to $2.07 billion, although organic sales improved by 3.4% [4] - Diagnostics sales fell 1.5% year over year to$ 2.41 billion, with core laboratory diagnostics showing a 4.3% organic growth [5] Guidance and Outlook - Abbott updated its 2024 guidance, expecting adjusted earnings in the range of $4.64-$ 4.74 per share, up from the previous range of $4.61-$ 4.71 [7] - The company anticipates full-year organic sales growth of 9.5-10%, an increase from the earlier estimate of 8.5-10% [7] Strategic Developments - Abbott formed a global partnership with Medtronic to integrate its continuous glucose monitoring system with Medtronic's insulin delivery devices [8] - The company launched Lingo, the first continuous glucose monitoring system available without a prescription in the U.S., and completed enrollment in its VOLT-AF IDE trial ahead of schedule [9]