Abbott Reports Strong Third-Quarter 2023 Results and Increases Full-Year EPS Guidance Range

Abbot Press Release October 18

Table of Content

        • Introduction
        • Sales by Segment
        • Impact of COVID-19 Testing Sales
        • Guidance Range
        • Conclusion

Introduction

Abbott, the world’s largest healthcare firm, has released its financial results from the 3rd quarter of 2023. The company is with a positive performance. The company’s revenue of $10.1 billion was fueled by organic sales growth of 13.8 per cent, which does not include COVID-19-related sales.

Sales by Segment

Abbott’s Nutrition segment reported sales of $2.1 billion, which included an organic increase of 18.1 per cent. The Diagnostics segment recorded revenues in the range of $2.4 billion, reflecting an organic growth rate of 10.1 per cent. The Established Pharmaceuticals segment reported sales of $1.3 billion, which reflects an organic increase of 11.1 per cent. The Medical Devices segment reported sales of $4.2 billion, an organic growth rate of 14.7 per cent.

Table 1: Abbott’s Sales by Segment (in millions)

Segment 3Q23 Sales Organic Growth
Nutrition 2,103 18.1%
Diagnostics 2,449 10.1%
Established Pharmaceuticals 1,368 11.1%
Medical Devices 4,249 14.7%
Total 10,143 13.8%

Impact of COVID-19 Testing Sales

Abbott’s sales were adversely affected by the drop in sales related to COVID-19 testing, which decreased by 20.5 per cent compared to the previous year. However, the organic growth without COVID-19 testing-related sales of 11.8 per cent.

Table 2: Impact of COVID-19 Testing Sales (in millions)

Segment 3Q23 Sales Impact of COVID-19 Testing Sales
Total 10,143 (20.5)%

Guidance Range

Abbott has reduced its full-year 2023 EPS projections to $3.14 from $3.18 and expects adjusted diluted earnings in the range of $4.42 to $4.46, which is an increase near the midpoint of the range. Abbott continues to forecast the full-year growth of its organic sales in 2023 with COVID-19 testing-related sales, which are expected to be in the low dozens of a per cent.

Conclusion

Abbott’s third-quarter earnings show the firm’s solid base business performance, an organic increase of 13.8 per cent and double-digit growth in all four primary business units. Abbott’s range of guidance for the full year 2023 has been trimmed to reflect Abbott’s confidence that it will continue to perform.

(Source)

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