Abbott Laboratories (ABT) Q3 2024 earnings summary

Executive summary

• Q3 2024 worldwide sales reached $10.6B, up 4.9% year-over-year, with organic base business growth of 8.2% led by double-digit Medical Devices growth.

• Adjusted diluted EPS for Q3 2024 was $1.21; GAAP diluted EPS was $0.94.

• New product launches, strategic partnerships, and R&D pipeline advancements supported portfolio strength, including the U.S. launch of Lingo and a global partnership with Medtronic.

• Board authorized a new $7B share repurchase program in October 2024.

• Gross margin improved to 51.4% in Q3 2024 from 49.7% in Q3 2023, reflecting higher pricing and margin initiatives.

Financial highlights

• Organic sales increased 7.6%–8.2% year-over-year, excluding COVID testing sales; Q3 net sales were $10.6B (+4.9% year-over-year).

• Adjusted gross margin ratio was 56.3%; adjusted R&D was 6.5% and SG&A was 27.2% of sales.

• Q3 2024 net earnings were $1.65B, up 14.6% year-over-year; adjusted net earnings were $2.12B, up 5.9%.

• Cash and cash equivalents increased to $7.6B at September 30, 2024.

• Cash flow from operations for the first nine months was $5.7B, up $1.5B year-over-year.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance raised to $4.64–$4.70; GAAP EPS projected at $3.34–$3.40.

• Q4 adjusted EPS guidance set at $1.31–$1.37.

• Full-year organic sales growth guidance maintained at 9.5%–10.0%, excluding COVID-19 testing sales.

• 2025 outlook aligns with high single-digit top-line and 10% EPS growth as a reasonable starting point.

• Company plans to maintain investment-grade credit ratings and robust liquidity.