Upgrade to SI Premium - Free Trial

Abbott Reports Third-Quarter 2024 Results and Raises Midpoint of Full-Year EPS Guidance Range

October 16, 2024 7:30 AM
  • 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
Pharmaceuticals


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
Pharmaceuticals


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
Diagnostics

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
Diagnostics

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
Markets


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
Markets


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
Management


Electro-

physiology


Heart
Failure


Vascular


Structural
Heart


Neuro-
modulation


Diabetes
Care

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
Management


Electro-

physiology


Heart
Failure


Vascular


Structural
Heart


Neuro-
modulation


Diabetes
Care

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
(GAAP)


Specified
Items


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
(GAAP)


Specified
Items


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
(GAAP)


Specified
Items


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
(GAAP)


Specified
Items


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
Reported

Impact from
business exit (b)

Adjusted
Revenue


Abbott
Reported

Impact from
business exit (b)

Adjusted
Revenue


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
Reported

Impact of
acquisition (a)

Impact from
business
exit (b)

Adjusted
Revenue


Abbott
Reported

Impact from
business
exit (b)

Adjusted
Revenue


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.

Cision View original content:https://www.prnewswire.com/news-releases/abbott-reports-third-quarter-2024-results-and-raises-midpoint-of-full-year-eps-guidance-range-302277755.html

SOURCE Abbott

Categories

PRNewswire Press Releases

Next Articles