Abbott Laboratories (ABT, Financial) released its third-quarter earnings report on October 18, 2023, revealing strong underlying base business performance despite a decrease in sales due to the anticipated decline in COVID-19 testing-related sales. The company reported sales of $10.1 billion, a decrease of 2.6% compared to the prior year. However, the underlying base business saw an organic sales growth of 13.8%, reflecting double-digit growth in each of the four major businesses.
Financial Highlights
The company's third-quarter GAAP diluted EPS was $0.82, and the adjusted diluted EPS, which excludes specified items, was $1.14. Abbott Laboratories (ABT, Financial) has narrowed its full-year 2023 EPS guidance range, projecting a GAAP basis EPS of $3.14 to $3.18 and an adjusted diluted EPS of $4.42 to $4.46. This represents an increase at the midpoint of the guidance range.
Business Developments
In July, Abbott obtained CE Mark for its AVEIRâ„¢ single-chamber leadless pacemaker, a significant development in treating patients with slow heart rhythms. In September, the company acquired Bigfoot Biomedical, a leader in developing insulin management systems, furthering Abbott's efforts to develop connected solutions for making diabetes management even more personal and precise. Additionally, Abbott expanded its existing collaboration with global biotech leader mAbxience Holdings S.L. to commercialize several biosimilar molecules, aiming to broaden access to these therapies for people in emerging markets.
CEO Commentary
The investments we made during the pandemic continue to drive broad-based growth across our underlying base business," said Robert B. Ford, chairman and chief executive officer, Abbott. "We're on track to deliver on the financial commitments we set at the beginning of the year, and the momentum we're building across the portfolio positions us well as we head into 2024."
Financial Tables Summary
The financial tables provided in the earnings report show detailed sales figures for the company's four major businesses: Nutrition, Diagnostics, Established Pharmaceuticals, and Medical Devices. The Nutrition business saw a reported sales increase of 15.5% and an organic sales increase of 18.1% in the third quarter. The Diagnostics business, however, saw a reported sales decrease of 32.7% and an organic sales decrease of 31.9%, primarily due to the decline in COVID-19 testing-related sales. The Established Pharmaceuticals business saw a reported sales increase of 3.2% and an organic sales increase of 11.1%. The Medical Devices business saw a reported sales increase of 16.6% and an organic sales increase of 14.7%.
Looking Forward
Despite the challenges posed by the decline in COVID-19 testing-related sales, Abbott Laboratories (ABT, Financial) remains optimistic about its future performance. The company continues to project full-year 2023 organic sales growth in the low double-digits, excluding COVID-19 testing-related sales. With its strong underlying base business performance and strategic investments, Abbott is well-positioned for continued growth as it heads into 2024.
