Abbott Laboratories (ABT) Q2 2024 earnings summary

Executive summary

• Second-quarter 2024 sales reached $10.4B, up 4% year-over-year, with organic base business growth of 9.3% driven by double-digit Medical Devices growth and strong performance across all segments.

• Adjusted diluted EPS was $1.14, up 16% sequentially; GAAP diluted EPS was $0.74 for the quarter.

• Full-year 2024 EPS guidance raised: GAAP $3.30–$3.40, adjusted $4.61–$4.71; organic sales growth guidance (ex-COVID-19) at 9.5%–10.0%.

• Portfolio strengthened by FDA approvals for Esprit BTK system, Lingo and Libre Rio glucose monitors, and CE Mark for AVEIR dual chamber leadless pacemaker.

• 10 new growth opportunities announced from R&D pipeline in 1H24.

Financial highlights

• Q2 2024 net sales: $10.4B (+4% vs. Q2 2023); organic sales growth 9.3% year-over-year, excluding COVID-19 testing sales.

• Adjusted diluted EPS: $1.14; GAAP diluted EPS: $0.74 for Q2 2024.

• Adjusted gross margin: 56%; GAAP gross margin: 51.1%.

• Adjusted R&D: 6.3% of sales; adjusted SG&A: 27.7% of sales.

• Adjusted tax rate for the quarter was 15%.

Outlook and guidance

• Full-year 2024 adjusted EPS forecast increased to $4.61–$4.71; GAAP EPS projected at $3.30–$3.40.

• Organic sales growth (ex-COVID) guidance raised to 9.5%–10.0%.

• Q3 2024 adjusted EPS forecasted at $1.18–$1.22.

• FX expected to have a >2.5% unfavorable impact on full-year reported sales.

• Abbott expects to recognize 60% of $5.3B in remaining performance obligations in Diagnostics and Medical Devices over the next 24 months.