Abbott Laboratories (ABT) Q4 2024 earnings summary

Executive summary

• Achieved Q4 sales of $11.0B, up 10.1% organically year-over-year; full-year sales reached $42.0B, up 9.6% organically year-over-year, excluding COVID-19 testing.

• Adjusted EPS was $1.34 in Q4 (up 12.6% year-over-year) and $4.67 for 2024 (up 5.2% year-over-year); 2025 guidance for adjusted EPS is $5.05–$5.25, reflecting double-digit growth at midpoint.

• Reached upper end of initial 2024 guidance for organic sales growth and adjusted EPS.

• Announced over 15 new growth opportunities in 2024, including FDA approvals for innovative medical devices.

• Generated $8.5 billion in operating cash flow, enabling reinvestment, capacity expansion, debt repayment, and $5 billion returned to shareholders.

Financial highlights

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

• Full-year organic sales growth was 9.6% year-over-year; GAAP sales growth was 4.6%.

• Adjusted gross margin ratio was 56.9% in Q4; full-year adjusted gross margin was 56.2%.

• Q4 net earnings were $9.2B (GAAP), $2.3B (adjusted); full-year net earnings were $13.4B (GAAP), $8.2B (adjusted).

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

Outlook and guidance

• 2025 guidance: organic sales growth of 7.5%-8.5%, adjusted EPS of $5.05-$5.25, and Q1 adjusted EPS of $1.05-$1.09.

• Full-year adjusted gross margin expected at 57% (up 80 bps), operating margin at 23.5%-24% (up 150 bps), and adjusted tax rate at 16%-17% due to Pillar Two tax framework.

• Foreign exchange expected to negatively impact full-year reported sales by 2.5%.

• No GAAP forward guidance due to unpredictability of certain items.

• Forward-looking statements subject to risks and uncertainties as detailed in the 2023 10-K.