Abbott Laboratories (ABT) Q4 2024 earnings summary

Executive summary

• Achieved Q4 2024 organic sales growth of 10.1% year-over-year (excluding COVID testing), with adjusted EPS up 13% year-over-year and full-year organic sales growth of 9.6%.

• Full-year sales reached $42.0B, up 9.6% organically, with gross margin improvement of 70 basis points and $8.5B in operating cash flow.

• Returned $5B to shareholders via dividends and share repurchases, while reinvesting in business and capacity expansion.

• Reached upper end of initial 2024 guidance for organic sales growth and adjusted EPS, with over 15 new growth opportunities and FDA approvals for innovative medical devices.

• Positioned for strong 2025 growth, with guidance for 7.5%-8.5% organic sales growth and double-digit adjusted EPS growth at the midpoint.

Financial highlights

• Q4 organic sales up 10.1% year-over-year; GAAP sales growth was 7.2%.

• Adjusted gross margin ratio at 56.9% of sales; adjusted R&D at 6.3%; adjusted SG&A at 26.3%.

• Full-year sales of continuous glucose monitors reached $6.5B, up 22%.

• Structural heart sales grew 23% in Q4; adult nutrition annual sales up 9%.

• Q4 adjusted EPS was $1.34 (up 12.6% year-over-year); full-year adjusted EPS was $4.67 (up 5.2%).

Outlook and guidance

• 2025 adjusted EPS guidance: $5.05-$5.25, with Q1 forecast at $1.05-$1.09.

• Organic sales growth expected at 7.5%-8.5% for 2025.

• Adjusted gross margin profile forecasted at ~57% for 2025, up 80 basis points; operating margin at 23.5%-24%, up 150 basis points.

• Adjusted tax rate expected to rise to 16%-17% due to Pillar Two tax framework.

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