Abbott Reports Third-Quarter 2024 Results and Raises Midpoint of Full-Year EPS Guidance Range
- Sales of $10.6 billion driven by strong underlying base business performance
- Reported sales growth of 4.9 percent; organic sales growth for underlying base business of 8.2 percent1, led by double-digit growth in Medical Devices
- Continues to strengthen portfolio with steady cadence of new product approvals, reimbursement coverage, and clinical data
ABBOTT PARK, Ill., Oct. 16, 2024 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the third quarter ended Sept. 30, 2024.
- 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 | 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 | 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 | ||||
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 | ||||
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 | 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 | 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 | Electro- physiology | Heart | Vascular | Structural | Neuro- | Diabetes | |||||||
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 | Electro- physiology | Heart | Vascular | Structural | Neuro- | Diabetes | |||||||
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.
About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 114,000 colleagues serve people in more than 160 countries.
Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube.
Abbott will live-webcast its third-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the webcast will be available later in the day.
— Private Securities Litigation Reform Act of 1995 —
A Caution Concerning Forward-Looking Statements
Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2023, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
1 | In the third quarter of 2024, total worldwide sales were $10.635 billion and COVID-19 testing-related sales were $265 million. In the third quarter of 2023, total worldwide sales were $10.143 billion and COVID-19 testing-related sales were $305 million. |
2 | Abbott has not provided the related GAAP financial measure for organic sales growth, excluding COVID-19 testing-related sales, on a forward-looking basis because the company is unable to predict with reasonable certainty the impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates, which could significantly impact reported sales growth. In addition, as the COVID-19 pandemic has shifted to an endemic state, the company has determined that it is unable to predict with reasonable certainty future COVID-19 test sales due to the unpredictability of demand for COVID-19 tests. |
3 | Diagnostic sales and COVID-19 testing-related sales in 2024 and 2023 are summarized below: |
Sales 3Q24 | COVID Tests Sales 3Q24 | |||||||||||
($ in millions) | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||
Total Diagnostics | 1,032 | 1,380 | 2,412 | 206 | 59 | 265 | ||||||
Core Laboratory | 332 | 982 | 1,314 | 1 | 2 | 3 | ||||||
Molecular | 37 | 91 | 128 | 2 | 1 | 3 | ||||||
Rapid Diagnostics | 560 | 264 | 824 | 203 | 56 | 259 | ||||||
Sales 3Q23 | COVID Tests Sales 3Q23 | |||||||||||
($ in millions) | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||
Total Diagnostics | 1,013 | 1,436 | 2,449 | 207 | 98 | 305 | ||||||
Core Laboratory | 317 | 997 | 1,314 | 2 | 3 | 5 | ||||||
Molecular | 38 | 95 | 133 | 5 | 3 | 8 | ||||||
Rapid Diagnostics | 561 | 301 | 862 | 200 | 92 | 292 | ||||||
Sales 9M24 | COVID Tests Sales 9M24 | |||||||||||
($ in millions) | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||
Total Diagnostics | 2,775 | 4,046 | 6,821 | 428 | 143 | 571 | ||||||
Core Laboratory | 969 | 2,879 | 3,848 | 3 | 5 | 8 | ||||||
Molecular | 112 | 272 | 384 | 7 | 3 | 10 | ||||||
Rapid Diagnostics | 1,386 | 762 | 2,148 | 418 | 135 | 553 | ||||||
Sales 9M23 | COVID Tests Sales 9M23 | |||||||||||
($ in millions) | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||
Total Diagnostics | 3,309 | 4,145 | 7,454 | 1,031 | 267 | 1,298 | ||||||
Core Laboratory | 917 | 2,872 | 3,789 | 6 | 10 | 16 | ||||||
Molecular | 128 | 293 | 421 | 19 | 17 | 36 | ||||||
Rapid Diagnostics | 1,975 | 853 | 2,828 | 1,006 | 240 | 1,246 | ||||||
Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings Third Quarter Ended September 30, 2024 and 2023 (in millions, except per share data) (unaudited) | ||||||
3Q24 | 3Q23 | % Change | ||||
Net Sales | $10,635 | $10,143 | 4.9 | |||
Cost of products sold, excluding amortization expense | 4,698 | 4,605 | 2.0 | |||
Amortization of intangible assets | 470 | 496 | (5.1) | |||
Research and development | 713 | 672 | 6.1 | |||
Selling, general, and administrative | 2,895 | 2,723 | 6.3 | |||
Total Operating Cost and Expenses | 8,776 | 8,496 | 3.3 | |||
Operating Earnings | 1,859 | 1,647 | 12.8 | |||
Interest expense, net | 51 | 69 | (26.0) | |||
Net foreign exchange (gain) loss | (11) | (10) | n/m | |||
Other (income) expense, net | (121) | (83) | n/m | |||
Earnings before taxes | 1,940 | 1,671 | 16.1 | |||
Taxes on earnings | 294 | 235 | 25.6 | |||
Net Earnings | $1,646 | $1,436 | 14.6 | |||
Net Earnings excluding Specified Items, as described below | $2,119 | $2,000 | 5.9 | 1) | ||
Diluted Earnings per Common Share | $0.94 | $0.82 | 14.6 | |||
Diluted Earnings per Common Share, excluding Specified Items, as described below | $1.21 | $1.14 | 6.1 | 1) | ||
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,748 | 1,748 | ||||
NOTES: | |
See table tilted "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information. | |
n/m = Percent change is not meaningful. | |
See footnotes on the following section. | |
1) | 2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $473 million, or $0.27 per share, for intangible amortization, charges related to intangible impairment, expenses associated with acquisitions and a divestiture, and other net expenses. |
2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $564 million, or $0.32 per share, for intangible amortization, charges related to the impairment of R&D intangible assets, expenses associated with acquisitions, restructuring and cost reduction initiatives and other net expenses. | |
Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings Nine Months Ended September 30, 2024 and 2023 (in millions, except per share data) (unaudited) | ||||||
9M24 | 9M23 | % Change | ||||
Net Sales | $30,976 | $29,868 | 3.7 | |||
Cost of products sold, excluding amortization expense | 13,764 | 13,419 | 2.6 | |||
Amortization of intangible assets | 1,413 | 1,485 | (4.9) | |||
Research and development | 2,095 | 2,041 | 2.6 | |||
Selling, general, and administrative | 8,790 | 8,225 | 6.9 | |||
Total Operating Cost and Expenses | 26,062 | 25,170 | 3.5 | |||
Operating Earnings | 4,914 | 4,698 | 4.6 | |||
Interest expense, net | 170 | 182 | (6.4) | |||
Net foreign exchange (gain) loss | (17) | 17 | n/m | |||
Other (income) expense, net | (222) | (370) | n/m | |||
Earnings before taxes | 4,983 | 4,869 | 2.3 | |||
Taxes on earnings | 810 | 740 | 9.6 | 1) | ||
Net Earnings | $4,173 | $4,129 | 1.0 | |||
Net Earnings excluding Specified Items, as described below | $5,851 | $5,708 | 2.5 | 2) | ||
Diluted Earnings per Common Share | $2.38 | $2.35 | 1.3 | |||
Diluted Earnings per Common Share, excluding Specified Items, as described below | $3.33 | $3.25 | 2.5 | 2) | ||
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,749 | 1,750 | ||||
NOTES: | |
See table tilted "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information. | |
n/m = Percent change is not meaningful. | |
See footnotes on the following section. | |
1) | 2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
2023 Taxes on Earnings includes the recognition of approximately $59 million of net tax expense as a result of the resolution of various tax positions related to prior years. | |
2) | 2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.678 billion, or $0.95 per share, for intangible amortization, charges related to intangible impairment, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and a divestiture, and other net expenses. |
2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.579 billion, or $0.90 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses. | |
Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information Third Quarter Ended September 30, 2024 and 2023 (in millions, except per share data) (unaudited) | |||||
3Q24 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 470 | $ (470) | $ — | ||
Gross Margin | 5,467 | 516 | 5,983 | ||
R&D | 713 | (19) | 694 | ||
SG&A | 2,895 | (5) | 2,890 | ||
Other (income) expense, net | (121) | (12) | (133) | ||
Earnings before taxes | 1,940 | 552 | 2,492 | ||
Taxes on Earnings | 294 | 79 | 373 | ||
Net Earnings | 1,646 | 473 | 2,119 | ||
Diluted Earnings per Share | $ 0.94 | $ 0.27 | $ 1.21 | ||
Specified items reflect intangible amortization expense of $470 million and other net expenses of $82 million associated with charges related to intangible impairment, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.
3Q23 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 496 | $ (496) | $ — | ||
Gross Margin | 5,042 | 542 | 5,584 | ||
R&D | 672 | (46) | 626 | ||
SG&A | 2,723 | (43) | 2,680 | ||
Other (income) expense, net | (83) | (23) | (106) | ||
Earnings before taxes | 1,671 | 654 | 2,325 | ||
Taxes on Earnings | 235 | 90 | 325 | ||
Net Earnings | 1,436 | 564 | 2,000 | ||
Diluted Earnings per Share | $ 0.82 | $ 0.32 | $ 1.14 | ||
Specified items reflect intangible amortization expense of $496 million and other net expenses of $158 million associated with restructuring actions, costs associated with acquisitions and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.
Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information Nine Months Ended September 30, 2024 and 2023 (in millions, except per share data) (unaudited) | |||||
9M24 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 1,413 | $ (1,413) | $ — | ||
Gross Margin | 15,799 | 1,540 | 17,339 | ||
R&D | 2,095 | (81) | 2,014 | ||
SG&A | 8,790 | (96) | 8,694 | ||
Other (income) expense, net | (222) | (183) | (405) | ||
Earnings before taxes | 4,983 | 1,900 | 6,883 | ||
Taxes on Earnings | 810 | 222 | 1,032 | ||
Net Earnings | 4,173 | 1,678 | 5,851 | ||
Diluted Earnings per Share | $ 2.38 | $ 0.95 | $ 3.33 | ||
Specified items reflect intangible amortization expense of $1.413 billion and other net expenses of $487 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.
9M23 | |||||
As Reported | Specified | As Adjusted | |||
Intangible Amortization | $ 1,485 | $ (1,485) | $ — | ||
Gross Margin | 14,964 | 1,591 | 16,555 | ||
R&D | 2,041 | (144) | 1,897 | ||
SG&A | 8,225 | (67) | 8,158 | ||
Other (income) expense, net | (370) | 34 | (336) | ||
Earnings before taxes | 4,869 | 1,768 | 6,637 | ||
Taxes on Earnings | 740 | 189 | 929 | ||
Net Earnings | 4,129 | 1,579 | 5,708 | ||
Diluted Earnings per Share | $ 2.35 | $ 0.90 | $ 3.25 | ||
Specified items reflect intangible amortization expense of $1.485 billion and other net expenses of $283 million associated with restructuring actions, costs associated with acquisitions and other expenses. See table titled "Details of Specified Items" for additional details regarding specified items.
A reconciliation of the third-quarter tax rates for 2024 and 2023 is shown below:
3Q24 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 1,940 | $ 294 | 15.2 % | |||
Specified items | 552 | 79 | ||||
Excluding specified items | $ 2,492 | $ 373 | 15.0 % | |||
3Q23 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 1,671 | $ 235 | 14.0 % | |||
Specified items | 654 | 90 | ||||
Excluding specified items | $ 2,325 | $ 325 | 14.0 % | |||
A reconciliation of the year-to-date tax rates for 2024 and 2023 is shown below:
9M24 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 4,983 | $ 810 | 16.3 % | 1) | ||
Specified items | 1,900 | 222 | ||||
Excluding specified items | $ 6,883 | $ 1,032 | 15.0 % | |||
9M23 | ||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
As reported (GAAP) | $ 4,869 | $ 740 | 15.2 % | 2) | ||
Specified items | 1,768 | 189 | ||||
Excluding specified items | $ 6,637 | $ 929 | 14.0 % | |||
1) | 2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
2) | 2023 Taxes on Earnings includes the recognition of approximately $59 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
Abbott Laboratories and Subsidiaries Non-GAAP Revenue Reconciliation Third Quarter and Nine Months Ended September 30, 2024 and 2023 ($ in millions) (unaudited) | |||||||||||||
3Q24 | 3Q23 | % Change vs. 3Q23 | |||||||||||
Non-GAAP | |||||||||||||
Abbott | Impact from | Adjusted | Abbott | Impact from | Adjusted | Reported | Adjusted | Organic | |||||
Total Company | 10,635 | (5) | 10,630 | 10,143 | (17) | 10,126 | 4.9 | 5.1 | 7.6 | ||||
U.S. | 4,202 | (5) | 4,197 | 3,817 | (17) | 3,800 | 10.1 | 10.4 | 10.4 | ||||
Intl | 6,433 | — | 6,433 | 6,326 | — | 6,326 | 1.7 | 1.7 | 5.8 | ||||
Total Nutrition | 2,066 | (5) | 2,061 | 2,073 | (17) | 2,056 | (0.3) | 0.3 | 3.4 | ||||
U.S. | 950 | (5) | 945 | 860 | (17) | 843 | 10.4 | 11.9 | 11.9 | ||||
Intl | 1,116 | — | 1,116 | 1,213 | — | 1,213 | (7.9) | (7.9) | (2.6) | ||||
Adult Nutrition | 1,111 | (5) | 1,106 | 1,072 | (17) | 1,055 | 3.6 | 4.7 | 9.1 | ||||
U.S. | 382 | (5) | 377 | 354 | (17) | 337 | 7.9 | 11.5 | 11.5 | ||||
Intl | 729 | — | 729 | 718 | — | 718 | 1.5 | 1.5 | 8.0 | ||||
Total Medical Devices | 4,747 | — | 4,747 | 4,249 | — | 4,249 | 11.7 | 11.7 | 13.3 | ||||
U.S. | 2,216 | — | 2,216 | 1,940 | — | 1,940 | 14.2 | 14.2 | 14.2 | ||||
Intl | 2,531 | — | 2,531 | 2,309 | — | 2,309 | 9.6 | 9.6 | 12.5 | ||||
Vascular | 699 | — | 699 | 672 | — | 672 | 3.9 | 3.9 | 4.9 | ||||
U.S. | 258 | — | 258 | 251 | — | 251 | 2.8 | 2.8 | 2.8 | ||||
Intl | 441 | — | 441 | 421 | — | 421 | 4.5 | 4.5 | 6.2 | ||||
9M24 | 9M23 | % Change vs. 9M23 | |||||||||||
Non-GAAP | |||||||||||||
Abbott | Impact of | Impact from | Adjusted | Abbott | Impact from | Adjusted | Reported | Adjusted | Organic | ||||
Total Company | 30,976 | (57) | (13) | 30,906 | 29,868 | (32) | 29,836 | 3.7 | 3.6 | 6.6 | |||
U.S. | 11,982 | (53) | (13) | 11,916 | 11,503 | (32) | 11,471 | 4.2 | 3.9 | 3.9 | |||
Intl | 18,994 | (4) | — | 18,990 | 18,365 | — | 18,365 | 3.4 | 3.4 | 8.3 | |||
Total Nutrition | 6,284 | — | (13) | 6,271 | 6,116 | (32) | 6,084 | 2.7 | 3.1 | 6.2 | |||
U.S. | 2,761 | — | (13) | 2,748 | 2,553 | (32) | 2,521 | 8.1 | 9.0 | 9.0 | |||
Intl | 3,523 | — | — | 3,523 | 3,563 | — | 3,563 | (1.1) | (1.1) | 4.2 | |||
Adult Nutrition | 3,261 | — | (13) | 3,248 | 3,167 | (32) | 3,135 | 3.0 | 3.7 | 8.1 | |||
U.S. | 1,115 | — | (13) | 1,102 | 1,081 | (32) | 1,049 | 3.2 | 5.0 | 5.0 | |||
Intl | 2,146 | — | — | 2,146 | 2,086 | — | 2,086 | 2.8 | 2.8 | 9.7 | |||
Total Medical Devices | 13,934 | (57) | — | 13,877 | 12,444 | — | 12,444 | 12.0 | 11.6 | 13.2 | |||
U.S. | 6,435 | (53) | — | 6,382 | 5,631 | — | 5,631 | 14.3 | 13.3 | 13.3 | |||
Intl | 7,499 | (4) | — | 7,495 | 6,813 | — | 6,813 | 10.1 | 10.0 | 13.1 | |||
Vascular | 2,112 | (57) | — | 2,055 | 2,004 | — | 2,004 | 5.4 | 2.6 | 3.9 | |||
U.S. | 787 | (53) | — | 734 | 733 | — | 733 | 7.4 | 0.1 | 0.1 | |||
Intl | 1,325 | (4) | — | 1,321 | 1,271 | — | 1,271 | 4.2 | 3.9 | 6.0 | |||
(a) | 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. |
(b) | Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business. This action was initiated in March 2024. |
Abbott Laboratories and Subsidiaries Details of Specified Items Third Quarter Ended September 30, 2024 (in millions, except per share data) (unaudited) | |||||||||
Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
Gross Margin | $ — | $ 2 | $ 470 | $ 44 | $ 516 | ||||
R&D | — | — | — | (19) | (19) | ||||
SG&A | (7) | 2 | — | — | (5) | ||||
Other (income) expense, net | (5) | — | — | (7) | (12) | ||||
Earnings before taxes | $ 12 | $ — | $ 470 | $ 70 | 552 | ||||
Taxes on Earnings (d) | 79 | ||||||||
Net Earnings | $ 473 | ||||||||
Diluted Earnings per Share | $ 0.27 | ||||||||
The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information." | |
a) | Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses. |
b) | Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives. |
c) | Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products and investment and intangible asset impairment charges. |
d) | Reflects the net tax benefit associated with the specified items. |
Abbott Laboratories and Subsidiaries Details of Specified Items Third Quarter Ended September 30, 2023 (in millions, except per share data) (unaudited) | |||||||||
Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
Gross Margin | $ 3 | $ 19 | $ 496 | $ 24 | $ 542 | ||||
R&D | (1) | (13) | — | (32) | (46) | ||||
SG&A | (22) | (22) | — | 1 | (43) | ||||
Other (income) expense, net | 5 | — | — | (28) | (23) | ||||
Earnings before taxes | $ 21 | $ 54 | $ 496 | $ 83 | 654 | ||||
Taxes on Earnings (d) | 90 | ||||||||
Net Earnings | $ 564 | ||||||||
Diluted Earnings per Share | $ 0.32 | ||||||||
The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information." | |
a) | Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as legal and other costs related to business acquisitions. |
b) | Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives. |
c) | Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products and charges for intangible asset impairments. |
d) | Reflects the net tax benefit associated with the specified items. |
Abbott Laboratories and Subsidiaries Details of Specified Items Nine Months Ended September 30, 2024 (in millions, except per share data) (unaudited) | |||||||||
Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
Gross Margin | $ 2 | $ 76 | $ 1,413 | $ 49 | $ 1,540 | ||||
R&D | (4) | (1) | — | (76) | (81) | ||||
SG&A | (32) | (17) | — | (47) | (96) | ||||
Other (income) expense, net | (140) | — | — | (43) | (183) | ||||
Earnings before taxes | $ 178 | $ 94 | $ 1,413 | $ 215 | 1,900 | ||||
Taxes on Earnings (d) | 222 | ||||||||
Net Earnings | $ 1,678 | ||||||||
Diluted Earnings per Share | $ 0.95 | ||||||||
The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information." | |
a) | Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions. |
b) | Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives. |
c) | Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment and intangible asset impairments. |
d) | Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years. |
Abbott Laboratories and Subsidiaries Details of Specified Items Nine Months Ended September 30, 2023 (in millions, except per share data) (unaudited) | |||||||||
Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
Gross Margin | $ 15 | $ 51 | $ 1,485 | $ 40 | $ 1,591 | ||||
R&D | (13) | (5) | — | (126) | (144) | ||||
SG&A | (43) | (28) | — | 4 | (67) | ||||
Other (income) expense, net | 46 | — | — | (12) | 34 | ||||
Earnings before taxes | $ 25 | $ 84 | $ 1,485 | $ 174 | 1,768 | ||||
Taxes on Earnings (d) | 189 | ||||||||
Net Earnings | $ 1,579 | ||||||||
Diluted Earnings per Share | $ 0.90 | ||||||||
The table above provides additional details regarding the specified items described on tables titled "Non-GAAP Reconciliation of Financial Information." | |
a) | Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs, which represent incremental costs directly related to integrating acquired businesses. |
b) | Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives. |
c) | Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for intangible asset impairments. |
d) | Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years. |
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SOURCE Abbott
