Earnings Results: • Reported adjusted EPS of $1.03, above analyst consensus estimates • Organic sales growth of 10.1% excluding COVID testing-related sales • Strong performance across all business segments, with Medical Devices and Established Pharmaceuticals delivering double-digit growth
Future Guidance: • Raised full year adjusted EPS guidance range to $4.30-$4.50 • Forecasting organic sales growth of 9% for the full year, excluding COVID testing-related sales • Expect Q2 adjusted EPS of $1.07, including an unfavorable impact of $0.06 from foreign exchange
In the first quarter of 2024, Abbott Laboratories delivered strong results that exceeded expectations, with organic sales growth of 10.1% excluding COVID testing-related sales. The company saw broad-based growth across its diversified business portfolio, particularly in the Medical Devices and Established Pharmaceuticals segments which grew by double-digits. Key growth drivers included continued adoption of the FreeStyle Libre continuous glucose monitoring system, strong performance of the electrophysiology and structural heart portfolios, and market share gains in core laboratory diagnostics.
Management expressed confidence in the sustainability of this growth trajectory, underpinned by the company’s robust pipeline of recently launched products and upcoming approvals. Notable pipeline highlights included the Aveir leadless pacemaker, TriClip transcatheter tricuspid valve repair system, and Navitor TAVR valve. The company also continues to pursue attractive growth opportunities in high-growth cardiovascular markets like AFib ablation and LAA closure.
Based on the strong start to the year, Abbott raised its full year adjusted EPS guidance range to $4.30-$4.50 and is now forecasting 9% organic sales growth excluding COVID testing sales. For Q2, the company expects adjusted EPS of $1.07, reflecting an anticipated $0.06 unfavorable impact from foreign exchange rates.
Robert Ford, Chairman and CEO, summarized the quarter by saying: “We’re off to a very good start to the year, exceeding expectations and raising guidance for both sales and EPS…The strong results we delivered this quarter reflect the returns we’re seeing from the investments we’re making to drive sustainable growth.”