On October 16, 2024 Abbott (NYSE: ABT) reported financial results for the third quarter ended Sept. 30, 2024 (Press release, Abbott, OCT 16, 2024, View Source [SID1234647225]).

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Third-quarter GAAP diluted EPS of $0.94 and adjusted diluted EPS of $1.21, which excludes specified items.
Abbott maintains its full-year 2024 organic sales growth guidance range of 9.5% to 10.0%, excluding COVID-19 testing-related sales2.
Abbott now projects full-year diluted EPS on a GAAP basis of $3.34 to $3.40 and projects adjusted diluted EPS of $4.64 to $4.70, which represents an increase at the midpoint of the guidance range.
In October, Abbott’s board of directors authorized a new share repurchase program of up to $7 billion of the company’s common shares.
In August, Abbott announced a unique global partnership with Medtronic to collaborate on connecting Abbott’s world-leading continuous glucose monitoring (CGM) system with Medtronic’s insulin delivery devices.
In September, Abbott announced the U.S. launch of Lingo, the company’s first continuous glucose monitoring system available without a prescription and designed for people interested in improving their overall health and wellness.
In September, Abbott announced a partnership with the Big Ten Conference to conduct a nationwide blood donation competition to help increase the U.S. blood supply.
In September, Abbott completed enrollment ahead of schedule in its VOLT-AF IDE trial, which is designed to evaluate the Volt Pulsed Field Ablation (PFA) System for treating patients with heart rhythm disorders such as atrial fibrillation (AFib).
"Our results this quarter demonstrate the strength of our diversified business model," said Robert B. Ford, chairman and chief executive officer, Abbott. "We’re well-positioned to achieve the upper end of our initial guidance ranges for the year and have great momentum heading into next year."

THIRD-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange and the impact of discontinuing the ZonePerfect product line in the Nutrition business, is an appropriate way for investors to best understand the core underlying performance of the business. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand underlying base business performance as the COVID-19 pandemic has shifted to an endemic state, resulting in significantly lower demand for COVID-19 tests.

Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.

Third Quarter 2024 Results (3Q24)

Sales 3Q24 ($ in millions)

Total Company

Nutrition

Diagnostics

Established
Pharmaceuticals

Medical Devices

U.S.

4,202

950

1,032

—

2,216

International

6,433

1,116

1,380

1,406

2,531

Total reported

10,635

2,066

2,412

1,406

4,747

% Change vs. 3Q23

U.S.

10.1

10.4

1.8

n/a

14.2

International

1.7

(7.9)

(3.8)

2.7

9.6

Total reported

4.9

(0.3)

(1.5)

2.7

11.7

Impact of foreign exchange

(2.5)

(3.1)

(2.9)

(4.3)

(1.6)

Impact of business exit*

(0.2)

(0.6)

—

—

—

Organic

7.6

3.4

1.4

7.0

13.3

Impact of COVID-19 testing sales (3)

(0.6)

—

(1.9)

—

—

Organic (excluding COVID-19 tests)

8.2

3.4

3.3

7.0

13.3

U.S.

11.0

11.9

2.4

n/a

14.2

International

6.5

(2.6)

3.8

7.0

12.5

First Nine Months 2024 Results (9M24)

Sales 9M24 ($ in millions)

Total Company

Nutrition

Diagnostics

Established
Pharmaceuticals

Medical Devices

U.S.

11,982

2,761

2,775

—

6,435

International

18,994

3,523

4,046

3,926

7,499

Total reported

30,976

6,284

6,821

3,926

13,934

% Change vs. 9M23

U.S.

4.2

8.1

(16.2)

n/a

14.3

International

3.4

(1.1)

(2.4)

2.1

10.1

Total reported

3.7

2.7

(8.5)

2.1

12.0

Impact of foreign exchange

(3.0)

(3.1)

(2.9)

(7.3)

(1.6)

Impact of business exit and acquisition*

0.1

(0.4)

—

—

0.4

Organic

6.6

6.2

(5.6)

9.4

13.2

Impact of COVID-19 testing sales (3)

(2.8)

—

(10.4)

—

—

Organic (excluding COVID-19 tests)

9.4

6.2

4.8

9.4

13.2

U.S.

10.0

9.0

3.0

n/a

13.3

International

9.0

4.2

5.9

9.4

13.1

Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.

*Quarter to date Sept. 30, 2024, reflects the impact of discontinuing the ZonePerfect product line in the Nutrition business in March 2024. Year to date Sept. 30, 2024, reflects the impact of discontinuing the ZonePerfect product line in the Nutrition business in March 2024 and the acquisition of CSI on April 27, 2023. Organic sales growth excludes the impact of the acquired business from January through April 2024.

Nutrition

Third Quarter 2024 Results (3Q24)

Sales 3Q24 ($ in millions)

Total

Pediatric

Adult

U.S.

950

568

382

International

1,116

387

729

Total reported

2,066

955

1,111

% Change vs. 3Q23

U.S.

10.4

12.2

7.9

International

(7.9)

(21.6)

1.5

Total reported

(0.3)

(4.5)

3.6

Impact of foreign exchange

(3.1)

(1.8)

(4.4)

Impact of business exit*

(0.6)

—

(1.1)

Organic

3.4

(2.7)

9.1

U.S.

11.9

12.2

11.5

International

(2.6)

(18.0)

8.0

Worldwide Nutrition sales decreased 0.3 percent on a reported basis and increased 3.4 percent on an organic basis in the third quarter, led by growth in Adult Nutrition.

In Adult Nutrition, global sales increased 3.6 percent on a reported basis and 9.1 percent on an organic basis, which was led by growth of Ensure, Abbott’s market-leading complete and balanced nutrition brand.

First Nine Months 2024 Results (9M24)

Sales 9M24 ($ in millions)

Total

Pediatric

Adult

U.S.

2,761

1,646

1,115

International

3,523

1,377

2,146

Total reported

6,284

3,023

3,261

% Change vs. 9M23

U.S.

8.1

11.8

3.2

International

(1.1)

(6.8)

2.8

Total reported

2.7

2.5

3.0

Impact of foreign exchange

(3.1)

(1.6)

(4.4)

Impact of business exit*

(0.4)

—

(0.7)

Organic

6.2

4.1

8.1

U.S.

9.0

11.8

5.0

International

4.2

(3.6)

9.7

*Reflects the impact of discontinuing the ZonePerfect product line. This action was initiated in March 2024.

Diagnostics

Third Quarter 2024 Results (3Q24)

Sales 3Q24 ($ in millions)

Total

Core Laboratory

Molecular

Point of Care

Rapid
Diagnostics

U.S.

1,032

332

37

103

560

International

1,380

982

91

43

264

Total reported

2,412

1,314

128

146

824

% Change vs. 3Q23

U.S.

1.8

4.5

(2.8)

6.0

(0.2)

International

(3.8)

(1.5)

(3.9)

0.7

(12.2)

Total reported

(1.5)

—

(3.6)

4.4

(4.4)

Impact of foreign exchange

(2.9)

(4.3)

(1.5)

(0.2)

(1.4)

Organic

1.4

4.3

(2.1)

4.6

(3.0)

Impact of COVID-19 testing sales (3)

(1.9)

(0.2)

(3.9)

—

(3.4)

Organic (excluding COVID-19 tests)

3.3

4.5

1.8

4.6

0.4

U.S.

2.4

4.8

4.5

6.0

(1.0)

International

3.8

4.4

0.8

1.3

2.8

As expected, Diagnostics sales growth in the third quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales3. Worldwide COVID-19 testing sales were $265 million in the third quarter of 2024 compared to $305 million in the third quarter of the prior year.

Excluding COVID-19 testing-related sales, global Diagnostics sales increased 0.2 percent on a reported basis and increased 3.3 percent on an organic basis.

Excluding COVID-19 testing-related sales, global Core Laboratory Diagnostics sales grew 0.1 percent on a reported basis and increased 4.5 percent on an organic basis, led by continued adoption of Abbott’s Alinity family of diagnostics systems and testing portfolios.

First Nine Months 2024 Results (9M24)

Sales 9M24 ($ in millions)

Total

Core Laboratory

Molecular

Point of Care

Rapid
Diagnostics

U.S.

2,775

969

112

308

1,386

International

4,046

2,879

272

133

762

Total reported

6,821

3,848

384

441

2,148

% Change vs. 9M23

U.S.

(16.2)

5.6

(12.3)

6.6

(29.8)

International

(2.4)

0.3

(7.2)

4.8

(10.6)

Total reported

(8.5)

1.5

(8.7)

6.0

(24.0)

Impact of foreign exchange

(2.9)

(4.8)

(0.8)

(0.1)

(1.1)

Organic

(5.6)

6.3

(7.9)

6.1

(22.9)

Impact of COVID-19 testing sales (3)

(10.4)

(0.2)

(6.3)

—

(25.0)

Organic (excluding COVID-19 tests)

4.8

6.5

(1.6)

6.1

2.1

U.S.

3.0

5.9

(3.3)

6.6

(0.1)

International

5.9

6.7

(0.9)

5.1

5.7

Established Pharmaceuticals

Third Quarter 2024 Results (3Q24)

Sales 3Q24 ($ in millions)

Total

Key Emerging
Markets

Other

U.S.

—

—

—

International

1,406

994

412

Total reported

1,406

994

412

% Change vs. 3Q23

U.S.

n/a

n/a

n/a

International

2.7

0.7

8.1

Total reported

2.7

0.7

8.1

Impact of foreign exchange

(4.3)

(4.7)

(3.1)

Organic

7.0

5.4

11.2

U.S.

n/a

n/a

n/a

International

7.0

5.4

11.2

Established Pharmaceuticals sales increased 2.7 percent on a reported basis and 7.0 percent on an organic basis in the third quarter.

Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott’s branded generics product portfolio. Sales in these geographies increased 0.7 percent on a reported basis and increased 5.4 percent on an organic basis, led by growth in several geographies and therapeutic areas, including gastroenterology, cardiometabolic, and central nervous system/pain management.

First Nine Months 2024 Results (9M24)

Sales 9M24 ($ in millions)

Total

Key Emerging
Markets

Other

U.S.

—

—

—

International

3,926

2,910

1,016

Total reported

3,926

2,910

1,016

% Change vs. 9M23

U.S.

n/a

n/a

n/a

International

2.1

0.7

6.4

Total reported

2.1

0.7

6.4

Impact of foreign exchange

(7.3)

(9.0)

(2.2)

Organic

9.4

9.7

8.6

U.S.

n/a

n/a

n/a

International

9.4

9.7

8.6

Medical Devices

Third Quarter 2024 Results (3Q24)

Sales 3Q24 ($ in millions)

Total

Rhythm
Management

Electro-

physiology

Heart
Failure

Vascular

Structural
Heart

Neuro-
modulation

Diabetes
Care

U.S.

2,216

288

285

252

258

270

190

673

International

2,531

309

325

70

441

288

46

1,052

Total reported

4,747

597

610

322

699

558

236

1,725

% Change vs. 3Q23

U.S.

14.2

6.0

15.8

16.7

2.8

21.1

0.8

23.6

International

9.6

5.7

9.2

5.2

4.5

9.2

17.8

13.3

Total reported

11.7

5.9

12.2

14.0

3.9

14.6

3.8

17.1

Impact of foreign exchange

(1.6)

(1.1)

(2.1)

(0.4)

(1.0)

(1.9)

(1.4)

(2.0)

Organic

13.3

7.0

14.3

14.4

4.9

16.5

5.2

19.1

U.S.

14.2

6.0

15.8

16.7

2.8

21.1

0.8

23.6

International

12.5

7.9

13.0

6.6

6.2

12.6

25.7

16.5

Worldwide Medical Devices sales increased 11.7 percent on a reported basis and 13.3 percent on an organic basis in the third quarter, including double-digit organic growth in both the U.S. and internationally.

Sales growth was led by double-digit growth in Diabetes Care, Structural Heart, Heart Failure, and Electrophysiology. Several products contributed to the strong performance, including FreeStyle Libre, Navitor, TriClip, Amplatzer Amulet, and AVEIR.

In Electrophysiology, sales grew 12.2 percent on a reported basis and 14.3 percent on an organic basis, which included double-digit growth in catheters and cardiac mapping-related products.

In Diabetes Care, sales of continuous glucose monitors exceeded $1.6 billion and grew 19.1 percent on a reported basis and 20.7 percent on an organic basis.

First Nine Months 2024 Results (9M24)

Sales 9M24 ($ in millions)

Total

Rhythm
Management

Electro-

physiology

Heart
Failure

Vascular

Structural
Heart

Neuro-
modulation

Diabetes
Care

U.S.

6,435

851

841

733

787

761

563

1,899

International

7,499

915

983

215

1,325

876

142

3,043

Total reported

13,934

1,766

1,824

948

2,112

1,637

705

4,942

% Change vs. 9M23

U.S.

14.3

6.4

15.3

11.0

7.4

16.7

6.5

24.3

International

10.1

4.8

12.6

8.2

4.2

10.3

16.5

13.5

Total reported

12.0

5.6

13.8

10.4

5.4

13.2

8.4

17.4

Impact of foreign exchange

(1.6)

(1.2)

(2.6)

(0.1)

(1.3)

(1.9)

(1.5)

(1.9)

Impact of acquisition*

0.4

—

—

—

2.8

—

—

—

Organic

13.2

6.8

16.4

10.5

3.9

15.1

9.9

19.3

U.S.

13.3

6.4

15.3

11.0

0.1

16.7

6.5

24.3

International

13.1

7.1

17.4

8.9

6.0

13.7

24.6

16.5

*Abbott completed the acquisition of CSI on April 27, 2023. For purposes of calculating organic sales growth, the impact from this acquired business has been excluded from January through April 2024.

ABBOTT’S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2024 diluted earnings per share under GAAP of $3.34 to $3.40. Abbott forecasts specified items for the full-year 2024 of $1.30 per share primarily related to intangible amortization, restructuring and cost reduction initiatives and other net expenses. Excluding specified items, projected adjusted diluted earnings per share would be $4.64 to $4.70 for the full-year 2024.

Abbott projects fourth-quarter 2024 diluted earnings per share under GAAP of $0.96 to $1.02. Abbott forecasts specified items for the fourth-quarter 2024 of $0.35 per share primarily related to intangible amortization, restructuring and cost reduction initiatives and other net expenses. Excluding specified items, projected adjusted diluted earnings per share would be $1.31 to $1.37 for the fourth quarter 2024.

ABBOTT DECLARES 403RD CONSECUTIVE QUARTERLY DIVIDEND
On Sept. 19, 2024, the board of directors of Abbott declared the company’s quarterly dividend of $0.55 per share. Abbott’s cash dividend is payable Nov. 15, 2024, to shareholders of record at the close of business on Oct. 15, 2024.

Abbott has increased its dividend payout for 52 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.