On July 18, 2024 Abbott (NYSE: ABT) reported financial results for the second quarter ended June 30, 2024 (Press release, Abbott, JUL 18, 2024, View Source [SID1234644948]).

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Second-quarter GAAP diluted EPS of $0.74 and adjusted diluted EPS of $1.14, which excludes specified items.
Abbott raised its full-year 2024 EPS guidance range. Abbott projects full-year diluted EPS on a GAAP basis of $3.30 to $3.40 and projects adjusted diluted EPS of $4.61 to $4.71.
Abbott narrowed its full-year 2024 organic sales growth guidance range, excluding COVID-19 testing-related sales, to 9.5% to 10.0%, which represents an increase at the midpoint of the range2.
In April, Abbott announced U.S. Food and Drug Administration (FDA) approval of the Esprit below-the-knee (BTK) system, a breakthrough innovation for people living with peripheral artery disease. This system is designed to keep arteries open and deliver a drug to support vessel healing prior to completely dissolving.
In June, Abbott announced U.S. FDA clearance for two new over-the-counter continuous glucose monitoring systems — Lingo and Libre Rio, which are based on Abbott’s world-leading FreeStyle Libre continuous glucose monitoring technology3.
In June, Abbott obtained CE Mark for its AVEIR dual chamber (DR) leadless pacemaker system, the world’s first dual chamber leadless pacemaker system that treats people with abnormal or slow heart rhythms.
During the first half of 2024, Abbott announced 10 new growth opportunities coming from the company’s highly productive R&D pipeline. These include a combination of new product approvals and new treatment indications.
"We achieved another quarter of strong growth in our underlying base business," said Robert B. Ford, chairman and chief executive officer, Abbott. "We have a lot of positive momentum heading into the second half of the year and are raising our full-year guidance."

SECOND-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange, the impact of discontinuing the ZonePerfect product line in the Nutrition business, and the impact of the acquisition of Cardiovascular Systems, Inc. (CSI) during the first year post-acquisition, 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.

Second Quarter 2024 Results (2Q24)

Sales 2Q24 ($ in millions)

Total Company

Nutrition

Diagnostics

Established
Pharmaceuticals

Medical Devices

U.S.

3,934

933

812

—

2,185

International

6,443

1,217

1,383

1,294

2,549

Total reported

10,377

2,150

2,195

1,294

4,734

% Change vs. 2Q23

U.S.

4.7

6.0

(15.5)

n/a

14.2

International

3.6

1.7

1.9

0.6

7.0

Total reported

4.0

3.5

(5.3)

0.6

10.2

Impact of foreign exchange

(3.5)

(3.6)

(3.8)

(7.5)

(2.2)

Impact of business exit and acquisition*

0.1

(0.4)

—

—

0.3

Organic

7.4

7.5

(1.5)

8.1

12.1

Impact of COVID-19 testing sales (4)

(1.9)

—

(7.4)

—

—

Organic (excluding COVID-19 tests)

9.3

7.5

5.9

8.1

12.1

U.S.

9.0

6.9

(0.3)

n/a

13.5

International

9.4

7.9

9.5

8.1

10.9

First Half 2024 Results (1H24)

Sales 1H24 ($ in millions)

Total Company

Nutrition

Diagnostics

Established
Pharmaceuticals

Medical Devices

U.S.

7,780

1,811

1,743

—

4,219

International

12,561

2,407

2,666

2,520

4,968

Total reported

20,341

4,218

4,409

2,520

9,187

% Change vs. 1H23

U.S.

1.2

7.0

(24.1)

n/a

14.3

International

4.3

2.4

(1.6)

1.8

10.3

Total reported

3.1

4.3

(11.9)

1.8

12.1

Impact of foreign exchange

(3.2)

(3.1)

(2.9)

(9.0)

(1.7)

Impact of business exit and acquisition*

0.2

(0.2)

—

—

0.7

Organic

6.1

7.6

(9.0)

10.8

13.1

Impact of COVID-19 testing sales (4)

(3.9)

—

(14.7)

—

—

Organic (excluding COVID-19 tests)

10.0

7.6

5.7

10.8

13.1

U.S.

9.5

7.5

3.3

n/a

12.8

International

10.3

7.7

7.1

10.8

13.4

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

*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

Second Quarter 2024 Results (2Q24)

Sales 2Q24 ($ in millions)

Total

Pediatric

Adult

U.S.

933

564

369

International

1,217

495

722

Total reported

2,150

1,059

1,091

% Change vs. 2Q23

U.S.

6.0

11.3

(1.2)

International

1.7

(4.4)

6.4

Total reported

3.5

3.4

3.7

Impact of foreign exchange

(3.6)

(1.6)

(5.4)

Impact of business exit*

(0.4)

—

(0.8)

Organic

7.5

5.0

9.9

U.S.

6.9

11.3

0.8

International

7.9

(1.0)

14.7

Worldwide Nutrition sales increased 3.5 percent on a reported basis and 7.5 percent on an organic basis in the second quarter.

In Pediatric Nutrition, global sales increased 3.4 percent on a reported basis and 5.0 percent on an organic basis. Sales in the U.S. reflect continued market share gains in the infant formula business.

In Adult Nutrition, global sales increased 3.7 percent on a reported basis and 9.9 percent on an organic basis, which was led by strong growth of Ensure, Abbott’s market-leading complete and balanced nutrition brand.

First Half 2024 Results (1H24)

Sales 1H24 ($ in millions)

Total

Pediatric

Adult

U.S.

1,811

1,078

733

International

2,407

990

1,417

Total reported

4,218

2,068

2,150

% Change vs. 1H23

U.S.

7.0

11.6

0.8

International

2.4

0.7

3.6

Total reported

4.3

6.1

2.6

Impact of foreign exchange

(3.1)

(1.5)

(4.6)

Impact of business exit*

(0.2)

—

(0.4)

Organic

7.6

7.6

7.6

U.S.

7.5

11.6

1.9

International

7.7

3.7

10.5

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

Diagnostics

Second Quarter 2024 Results (2Q24)

Sales 2Q24 ($ in millions)

Total

Core Laboratory

Molecular

Point of Care

Rapid
Diagnostics

U.S.

812

327

33

107

345

International

1,383

1,002

94

49

238

Total reported

2,195

1,329

127

156

583

% Change vs. 2Q23

U.S.

(15.5)

5.1

(22.5)

8.1

(32.1)

International

1.9

2.1

(4.9)

14.1

2.1

Total reported

(5.3)

2.8

(10.3)

9.9

(21.3)

Impact of foreign exchange

(3.8)

(5.8)

(0.9)

(0.1)

(1.5)

Organic

(1.5)

8.6

(9.4)

10.0

(19.8)

Impact of COVID-19 testing sales (4)

(7.4)

(0.2)

(3.8)

—

(20.2)

Organic (excluding COVID-19 tests)

5.9

8.8

(5.6)

10.0

0.4

U.S.

(0.3)

5.3

(19.0)

8.1

(6.6)

International

9.5

9.9

—

14.5

11.0

As expected, Diagnostics sales growth in the second quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales4. Worldwide COVID-19 testing sales were $102 million in the second quarter of 2024 compared to $263 million in the second quarter of the prior year.

Excluding COVID-19 testing-related sales, global Diagnostics sales increased 1.8 percent on a reported basis and 5.9 percent on an organic basis.

Excluding COVID-19 testing-related sales, global Core Laboratory Diagnostics sales increased 3.0 percent on a reported basis and 8.8 percent on an organic basis, led by continued strong adoption of Abbott’s Alinity family of diagnostics systems and testing portfolios.

First Half 2024 Results (1H24)

Sales 1H24 ($ in millions)

Total

Core Laboratory

Molecular

Point of Care

Rapid
Diagnostics

U.S.

1,743

637

75

205

826

International

2,666

1,897

181

90

498

Total reported

4,409

2,534

256

295

1,324

% Change vs. 1H23

U.S.

(24.1)

6.2

(16.3)

6.9

(41.6)

International

(1.6)

1.2

(8.8)

6.9

(9.7)

Total reported

(11.9)

2.4

(11.1)

6.9

(32.7)

Impact of foreign exchange

(2.9)

(4.9)

(0.6)

—

(1.1)

Organic

(9.0)

7.3

(10.5)

6.9

(31.6)

Impact of COVID-19 testing sales (4)

(14.7)

(0.3)

(7.3)

—

(34.6)

Organic (excluding COVID-19 tests)

5.7

7.6

(3.2)

6.9

3.0

U.S.

3.3

6.5

(6.7)

6.9

0.3

International

7.1

7.9

(1.8)

7.1

7.1

Established Pharmaceuticals

Second Quarter 2024 Results (2Q24)

Sales 2Q24 ($ in millions)

Total

Key Emerging
Markets

Other

U.S.

—

—

—

International

1,294

988

306

Total reported

1,294

988

306

% Change vs. 2Q23

U.S.

n/a

n/a

n/a

International

0.6

(0.2)

3.1

Total reported

0.6

(0.2)

3.1

Impact of foreign exchange

(7.5)

(9.0)

(2.6)

Organic

8.1

8.8

5.7

U.S.

n/a

n/a

n/a

International

8.1

8.8

5.7

Established Pharmaceuticals sales increased 0.6 percent on a reported basis and 8.1 percent on an organic basis in the second 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 decreased 0.2 percent on a reported basis and increased 8.8 percent on an organic basis, led by growth in several geographies and therapeutic areas, including cardiometabolic, gastroenterology, and central nervous system/pain management.

First Half 2024 Results (1H24)

Sales 1H24 ($ in millions)

Total

Key Emerging
Markets

Other

U.S.

—

—

—

International

2,520

1,916

604

Total reported

2,520

1,916

604

% Change vs. 1H23

U.S.

n/a

n/a

n/a

International

1.8

0.7

5.3

Total reported

1.8

0.7

5.3

Impact of foreign exchange

(9.0)

(11.3)

(1.6)

Organic

10.8

12.0

6.9

U.S.

n/a

n/a

n/a

International

10.8

12.0

6.9

View News Release Full Screen
Medical Devices

Second Quarter 2024 Results (2Q24)

Sales 2Q24 ($ in millions)

Total

Rhythm
Management

Electro-

physiology

Heart
Failure

Vascular

Structural
Heart

Neuro-
modulation

Diabetes
Care

U.S.

2,185

292

287

244

275

258

192

637

International

2,549

315

340

77

449

306

51

1,011

Total reported

4,734

607

627

321

724

564

243

1,648

% Change vs. 2Q23

U.S.

14.2

8.5

16.8

7.7

4.3

17.9

3.7

26.3

International

7.0

0.4

10.5

11.4

(0.4)

9.4

21.7

10.0

Total reported

10.2

4.2

13.3

8.6

1.3

13.2

7.0

15.8

Impact of foreign exchange

(2.2)

(1.7)

(3.4)

(0.3)

(2.0)

(2.4)

(1.2)

(2.4)

Impact of acquisition*

0.3

—

—

—

2.1

—

—

—

Organic

12.1

5.9

16.7

8.9

1.2

15.6

8.2

18.2

U.S.

13.5

8.5

16.8

7.7

(0.8)

17.9

3.7

26.3

International

10.9

3.7

16.7

12.8

2.5

13.8

28.4

13.7

Worldwide Medical Devices sales increased 10.2 percent on a reported basis and 12.1 percent on an organic basis in the second quarter, including double-digit organic growth in both the U.S. and internationally.

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

In Electrophysiology, sales grew 13.3 percent on a reported basis and 16.7 percent on an organic basis, which included double-digit growth in catheters and cardiac mapping-related products, and double-digit growth in all major geographic regions.

In Diabetes Care, FreeStyle Libre sales were $1.6 billion, which represents sales growth of 18.4 percent on a reported basis and 20.4 percent on an organic basis.

View News Release Full Screen
First Half 2024 Results (1H24)

Sales 1H24 ($ in millions)

Total

Rhythm
Management

Electro-

physiology

Heart
Failure

Vascular

Structural
Heart

Neuro-
modulation

Diabetes
Care

U.S.

4,219

563

556

481

529

491

373

1,226

International

4,968

606

658

145

884

588

96

1,991

Total reported

9,187

1,169

1,214

626

1,413

1,079

469

3,217

% Change vs. 1H23

U.S.

14.3

6.6

15.0

8.2

9.8

14.4

9.6

24.6

International

10.3

4.4

14.4

9.7

4.1

10.9

15.9

13.6

Total reported

12.1

5.4

14.7

8.6

6.1

12.5

10.9

17.6

Impact of foreign exchange

(1.7)

(1.3)

(2.8)

(0.1)

(1.5)

(1.8)

(1.6)

(1.8)

Impact of acquisition*

0.7

—

—

—

4.3

—

—

—

Organic

13.1

6.7

17.5

8.7

3.3

14.3

12.5

19.4

U.S.

12.8

6.6

15.0

8.2

(1.3)

14.4

9.6

24.6

International

13.4

6.8

19.6

10.1

6.0

14.3

24.1

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 $3.30 to $3.40. Abbott forecasts specified items for the full-year 2024 of $1.31 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 $4.61 to $4.71 for the full-year 2024.

Abbott projects third-quarter 2024 diluted earnings per share under GAAP of $0.85 to $0.89. Abbott forecasts specified items for the third-quarter 2024 of $0.33 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 $1.18 to $1.22 for the third quarter 2024.

ABBOTT DECLARES 402ND CONSECUTIVE QUARTERLY DIVIDEND
On June 14, 2024, the board of directors of Abbott declared the company’s quarterly dividend of $0.55 per share. Abbott’s cash dividend is payable Aug. 15, 2024, to shareholders of record at the close of business on July 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.