Abbott has reported net earnings of $1.22bn in the first quarter of fiscal year 2024 (Q1 FY 2024), a 7% decrease from $1.31bn in the Q1 of fiscal year 2023 (FY 2023).
The company's revenue for the first quarter that ended 31 March 2024 stood at $9.96bn, from $9.74bn in the same period of last year, driven by robust sales in medical devices.
This reported sales growth of 2.2% includes the impact of the anticipated decline in Covid-19 testing-related sales compared to the previous year.
The company's organic sales growth (excluding Covid-19 tests) for its underlying base business was 10.8%, representing the fifth consecutive quarter of double-digit growth.
The company reported a 14.2% increase in its worldwide medical devices sales on a reported basis and 14.3% on an organic basis in Q1 2024, including double-digit growth in both the US and internationally.
Abbott noted that medical devices sales growth was led by double-digit growth in diabetes care, electrophysiology, neuromodulation, and structural heart.
The company’s sales from Nutrition, Diagnostics, and Established Pharmaceuticals businesses stood at $2.06bn, $2.21bn, and $1.22bn, respectively.
For Q1 2024, on GAAP basis, diluted EPS was $0.70 and adjusted diluted EPS was $0.98, which does not include specified items.
On a GAAP basis, the company projects diluted earnings per share of $3.25 to $3.40 for the full year 2024.
Abbott forecasts specified items for the full year of 2024 to be at $1.30 per share, primarily associated with intangible amortisation, restructuring, cost reduction initiatives, and other net expenses.
Excluding these specified items, the projected adjusted diluted earnings per share would be $4.55 to $4.70 for the full year.
In February 2024, the company's board of directors announced a quarterly dividend of $0.55 per share, payable on 15 May 2024 to shareholders of record at the close of the business as of 15 April 2024.
Abbott chairman and CEO Robert B Ford said: “Our first-quarter results reflect a strong start to the year, and we are raising our full-year sales and EPS guidance.
“This was the fifth consecutive quarter that we delivered double-digit organic sales growth in our underlying base business, which included particularly strong results in Medical Devices and Established Pharmaceuticals.”
Recently, the US Food and Drug Administration (FDA) tagged a recall of Abbott’s HeartMate Touch System as Class I.
