
Abbott Reports Strong Third-Quarter 2023 Results With Medical Device Sales up 15% Organically, Diagnostics up 6% Excluding COVID-19
Abbott announced its financial results for the third quarter ending on September 30, 2023 today. Abbott reported total sales of $10.1 billion vs. consensus estimates of $9.81 billion. While revenue declined 2.6 percent compared to the previous year, it was entirely due to the anticipated decline in COVID-19 testing-related sales. Worldwide COVID-19 testing sales were $305 million in the third quarter of 2023 compared to $1.671 billion in the third quarter of the prior year creating a significant headwind. Importantly, the underlying base business, resulting in organic sales growth of 13.8 percent reflecting strong double-digit growth.
Abbott’s reported 3Q23 adjusted diluted EPS reached $1.14, versus consensus expectations of $1.11. Strong earnings performance by both Abbott and JNJ yesterday could be a sign that abating inflationary pressures and industry cost focus could lead to strong earnings in the third quarter.
Abbott highlighted several key recent strategic initiatives including the recent CEO mark of its AVEIR™ wireless pacemaker technology in July, The new technology is a less invasive alternative to traditional pacemakers, requiring no chest incision or leads for therapy delivery. Additionally, the company completed the acquisition of Bigfoot Biomedical, a leader in developing insulin management systems in September bolstering its diabetes management offering. Abbott also highlighted the publication of an analysis highlighting the complementary relationship between its FreeStyle Libre® continuous glucose monitoring system and GLP-1 medications. This integration allows for behavior change support and more effective diabetes treatment.
Importantly, Abbott’s medical devices segment delivered strong results in the third quarter of 2023, with global medical device sales growing by 16.6%, and 14.7% on an organic basis. The company highlighted several factors contributing to the growth. Abbott’s Diabetes Care division reported sales increased an impressive 26.2%. The company highlighted the strength of FreeStyle Libre with $1.4B in revenue and which grew 30%, which has read-throughs for continuous glucose monitoring market leaders Dexcom and Medtronic. The company also saw strong sales in electrophysiology internationally leading to 16% overall growth. This is relatively in-line with market leader JNJ’s 3Q23 results. The company also highlighted the introduction of new products and indications which contributed to the segment’s overall strong performance. Key products included Amplatzer® Amulet® occluders for structural heart defects, the Navitor® trans aortic valve implant, the TriClip® transcatheter tricuspid valve repair device, and AVEIR, their leadless pacemaker.
Organic diagnostic growth excluding COVID-19 sales was 6.2% in the quarter. Organic sales were predominantly driven by its core laboratory offering and rapid tests with total molecular sales declining on a year-over-year basis.
Abbott tightened the range of its full year adjusted earnings per share guidance to $4.42 to $4.46 for the full-year 2023 compared to previous guidance of $4.30 to $4.50 issued on its second quarter earnings call.