Abbott Laboratories (NYSE:ABT) stock fell 0.22% (As on October 17, 11:21:27 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the third quarter of FY 24. In the third quarter, the gross profit rose 7.2% year over year to $5.93 billion despite a 2.1% increase in the cost of products sold (excluding amortization expense). The gross margin expanded 123 basis points (bps) to 55.8%. ABT in the third quarter of FY 24 has reported the adjusted earnings per share of $1.21, beating the analysts’ estimates for the adjusted earnings per share of $1.20, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 4.9 percent to $10.64 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue by 0.7%.
Moreover, in the third quarter, Established Pharmaceuticals’ product sales increased 2.7% on a reported basis (7% on an organic basis) to $1.41 billion. The Medical Devices segment’s sales rose 11.7% year over year on a reported basis (13.3% on an organic basis) to $4.75 billion. Sales growth was led by double-digit growth in Diabetes Care, Structural Heart, Heart Failure and Electrophysiology. The Diabetes Care division reported organic sales growth of 19.1% year over year, led by sales of continuous glucose monitors, which exceeded $1.6 billion. Structural Heart sales rose 16.5%. Heart Failure sales improved 14.4% year over year organically. The Vascular division recorded organic sales growth of 4.9%. Nutrition sales were down 0.3% year over year on a reported basis (up 3.4% on an organic basis) to $2.07 billion. Pediatric Nutrition sales were down 2.7% on an organic basis. Adult Nutrition sales improved 9.1% organically. Diagnostics sales were down 1.5% year over year on a reported basis (up 1.4% on an organic basis) to $2.41 billion.
The full-year adjusted earnings (excluding specified items of $1.30 per share) are now expected to be in the range of $4.64-$4.74 (previously $4.61-$4.71) per share. The Zacks Consensus Estimate is pegged at $4.66.
Full-year 2024 organic sales growth, excluding COVID-19 testing-related sales, is expected to be in the range of 9.5-10% (earlier 8.5-10%). The Zacks Consensus Estimate for sales is currently pegged at $41.77 billion, suggesting a 4.1% improvement from the 2023 level.
The fourth-quarter 2024 adjusted EPS is projected to be in the band of $1.31-$1.37. The Zacks Consensus Estimate is pegged at $1.20.