On April 17, 2024 Abbott (NYSE: ABT) reported financial results for the first quarter ended March 31, 2024 (Press release, Abbott, APR 17, 2024, View Source [SID1234642131]).
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First-quarter GAAP diluted EPS of $0.70 and adjusted diluted EPS of $0.98, which excludes specified items.
Abbott narrowed its full-year 2024 EPS guidance range. Abbott projects full-year diluted EPS on a GAAP basis of $3.25 to $3.40 and projects adjusted diluted EPS of $4.55 to $4.70, which represents an increase at the midpoint of the range.
Abbott narrowed its full-year 2024 organic sales growth guidance range, excluding COVID-19 testing-related sales, to 8.5% to 10.0%, which represents an increase at the midpoint of the range2.
In January, Abbott launched the Protality brand, a new high-protein nutrition shake to support the growing number of adults interested in pursuing weight loss while maintaining muscle mass.
In February, Insulet’s Omnipod 5 Automated Insulin Delivery System received CE Mark approval to be offered as an integrated solution with Abbott’s FreeStyle Libre 2 Plus sensor for treating diabetes.
In March, Abbott completed enrollment in the company’s Volt CE Mark clinical study, which is designed to evaluate the Volt Pulsed Field Ablation (PFA) System for treating patients with heart rhythm disorders such as atrial fibrillation (AFib). Enrollment in the company’s VOLT-AF IDE clinical study was initiated in April.
In April, Abbott announced U.S. Food and Drug Administration (FDA) approval of TriClip, a first-of-its-kind, minimally invasive treatment option for patients with tricuspid regurgitation, or a leaky tricuspid heart valve.
In April, Abbott announced FDA approval of the i-STAT TBI test, which helps assess a suspected traumatic brain injury (TBI) or concussion in just 15 minutes. This new test can be performed outside of traditional hospital settings, making it more accessible and convenient for patients.
"Our first-quarter results reflect a strong start to the year, and we are raising our full-year sales and EPS guidance," said Robert B. Ford, chairman and chief executive officer, Abbott. "This was the fifth consecutive quarter that we delivered double-digit organic sales growth in our underlying base business, which included particularly strong results in Medical Devices and Established Pharmaceuticals."
FIRST-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 the acquisition of Cardiovascular Systems, Inc. (CSI), 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 ordivided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied ordivided, as appropriate, by the prior year average foreign exchange rates.
Total Company
First Quarter 2024 Results (1Q24)
Sales 1Q24 ($ in millions)
Total Company
Nutrition
Diagnostics
Established
Pharmaceuticals
Medical Devices
U.S.
3,846
878
931
—
2,034
International
6,118
1,190
1,283
1,226
2,419
Total reported
9,964
2,068
2,214
1,226
4,453
% Change vs. 1Q23
U.S.
(2.1)
8.1
(30.3)
n/a
14.4
International
5.2
3.0
(5.1)
3.1
14.0
Total reported
2.2
5.1
(17.6)
3.1
14.2
Impact of foreign exchange
(2.9)
(2.6)
(2.1)
(10.6)
(1.2)
Impact of CSI acquisition
0.4
—
—
—
1.1
Organic
4.7
7.7
(15.5)
13.7
14.3
Impact of COVID-19 testing sales
(6.1)
—
(20.9)
—
—
Organic (excluding COVID-19 tests)
10.8
7.7
5.4
13.7
14.3
U.S.
10.0
8.1
7.0
n/a
12.1
International
11.3
7.4
4.4
13.7
16.1
Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.
Nutrition
First Quarter 2024 Results (1Q24)
Sales 1Q24 ($ in millions)
Total
Pediatric
Adult
U.S.
878
514
364
International
1,190
495
695
Total reported
2,068
1,009
1,059
% Change vs. 1Q23
U.S.
8.1
12.0
3.0
International
3.0
6.4
0.8
Total reported
5.1
9.2
1.5
Impact of foreign exchange
(2.6)
(1.3)
(3.8)
Organic
7.7
10.5
5.3
U.S.
8.1
12.0
3.0
International
7.4
8.9
6.4
Worldwide Nutrition sales increased 5.1 percent on a reported basis and 7.7 percent on an organic basis in the first quarter.
In Pediatric Nutrition, global sales increased 9.2 percent on a reported basis and 10.5 percent on an organic basis. In the U.S., sales growth of 12.0 percent was primarily driven by market share gains in the infant formula business. International sales increased 6.4 percent on a reported basis and 8.9 percent on an organic basis, which was led by strong growth in Canada and several countries in Asia Pacific and Latin America.
In Adult Nutrition, global sales increased 1.5 percent on a reported basis and 5.3 percent on an organic basis, which was led by growth of Ensure, Abbott’s market-leading complete and balanced nutrition brand.
Diagnostics
First Quarter 2024 Results (1Q24)
Sales 1Q24 ($ in millions)
Total
Core Laboratory
Molecular
Point of Care
Rapid
Diagnostics
U.S.
931
310
42
98
481
International
1,283
895
87
41
260
Total reported
2,214
1,205
129
139
741
% Change vs. 1Q23
U.S.
(30.3)
7.3
(10.6)
5.6
(46.9)
International
(5.1)
0.2
(12.5)
(0.6)
(18.3)
Total reported
(17.6)
2.0
(11.9)
3.7
(39.5)
Impact of foreign exchange
(2.1)
(3.9)
(0.2)
0.1
(0.8)
Organic
(15.5)
5.9
(11.7)
3.6
(38.7)
Impact of COVID-19 testing sales
(20.9)
(0.3)
(10.9)
—
(44.3)
Organic (excluding COVID-19 tests)
5.4
6.2
(0.8)
3.6
5.6
U.S.
7.0
7.7
6.2
5.6
6.9
International
4.4
5.7
(3.6)
(0.8)
3.5
As expected, Diagnostics sales growth in the first quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales3. Worldwide COVID-19 testing sales were $204 million in the first quarter of 2024 compared to $730 million in the first quarter of the prior year.
Excluding COVID-19 testing-related sales, global Diagnostics sales increased 2.7 percent on a reported basis and 5.4 percent on an organic basis.
Excluding COVID-19 testing-related sales, global Core Laboratory Diagnostics sales increased 2.2 percent on a reported basis and 6.2 percent on an organic basis, led by continued strong adoption of Abbott’s Alinity family of diagnostics systems and testing portfolios.
Established Pharmaceuticals
First Quarter 2024 Results (1Q24)
Sales 1Q24 ($ in millions)
Total
Key Emerging
Markets
Other
U.S.
—
—
—
International
1,226
928
298
Total reported
1,226
928
298
% Change vs. 1Q23
U.S.
n/a
n/a
n/a
International
3.1
1.7
7.6
Total reported
3.1
1.7
7.6
Impact of foreign exchange
(10.6)
(13.7)
(0.6)
Organic
13.7
15.4
8.2
U.S.
n/a
n/a
n/a
International
13.7
15.4
8.2
Established Pharmaceuticals sales increased 3.1 percent on a reported basis and 13.7 percent on an organic basis in the first 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 1.7 percent on a reported basis and 15.4 percent on an organic basis, led by growth in several geographies and therapeutic areas, including respiratory, women’s health, and central nervous system/pain management.
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Medical Devices
First Quarter 2024 Results (1Q24)
Sales 1Q24 ($ in millions)
Total
Rhythm
Management
Electro-
physiology
Heart
Failure
Vascular
Structural
Heart
Neuro-
modulation
Diabetes
Care
U.S.
2,034
271
269
237
254
233
181
589
International
2,419
291
318
68
435
282
45
980
Total reported
4,453
562
587
305
689
515
226
1,569
% Change vs. 1Q23
U.S.
14.4
4.5
13.1
8.7
16.4
10.8
16.8
22.8
International
14.0
9.0
18.9
7.7
9.1
12.5
9.8
17.6
Total reported
14.2
6.8
16.2
8.5
11.7
11.7
15.3
19.5
Impact of foreign exchange
(1.2)
(0.7)
(2.2)
0.1
(1.0)
(1.3)
(2.1)
(1.2)
Impact of CSI
1.1
—
—
—
6.9
—
—
—
Organic
14.3
7.5
18.4
8.4
5.8
13.0
17.4
20.7
U.S.
12.1
4.5
13.1
8.7
(1.8)
10.8
16.8
22.8
International
16.1
10.3
23.0
7.1
9.9
14.8
19.6
19.6
Worldwide Medical Devices sales increased 14.2 percent on a reported basis and 14.3 percent on an organic basis in the first quarter, including double-digit growth in both the U.S. and internationally.
Sales growth was led by double-digit growth in Diabetes Care, Electrophysiology, Neuromodulation, and Structural Heart. Several recently launched products and new indications contributed to the strong performance, including Amplatzer Amulet, Navitor, TriClip, and AVEIR.
In Electrophysiology, internationally, sales grew 18.9 percent on a reported and 23.0 percent on an organic basis, which included organic sales growth of 20.4 percent in Europe.
In Diabetes Care, FreeStyle Libre sales were $1.5 billion, which represents sales growth of 22.4 percent on a reported basis and 23.3 percent on an organic basis.
ABBOTT’S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2024 diluted earnings per share under GAAP of $3.25 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 $4.55 to $4.70 for the full-year 2024.
Abbott projects second-quarter 2024 diluted earnings per share under GAAP of $0.69 to $0.73. Abbott forecasts specified items for the second-quarter 2024 of $0.39 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 $1.08 to $1.12 for the second quarter 2024.
ABBOTT DECLARES 401ST CONSECUTIVE QUARTERLY DIVIDEND
On February 16, 2024, the board of directors of Abbott declared the company’s quarterly dividend of $0.55 per share. Abbott’s cash dividend is payable May 15, 2024, to shareholders of record at the close of business on April 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.