Abbott Labs' first-quarter results top estimates amid strong medical-device sales

By Eleanor Laise

Healthcare-products company raises midpoint of full-year guidance range, but second-quarter guidance disappoints investors

Abbott Laboratories on Wednesday reported first-quarter sales and profit that topped expectations amid strength in its medical-device business.

The healthcare-products company reported first-quarter net income of $1.225 billion, or 70 cents per share, versus $1.318 billion, or 75 cents per share, a year earlier. Adjusted per-share earnings came to 98 cents, beating the FactSet consensus of 95 cents. Sales totaled $9.964 billion in the quarter, up 2.2% from a year earlier and topping the FactSet consensus of $9.883 billion.

Abbott's medical-device business, which makes stent systems, pacemakers and other products, generated $4.45 billion in first-quarter sales, up 14.2% from a year earlier. Sales of the company's FreeStyle Libre continuous glucose monitors rose 22.4% from a year earlier, to $1.5 billion.

Sales in the company's nutrition business grew 5.1% from a year earlier, to $2.07 billion. Abbott is looking to capitalize on the boom in anti-obesity medications such as Novo Nordisk's (NVO) Wegovy and Eli Lilly & Co.'s (LLY) Zepbound, earlier this year, launching a new high-protein nutrition shake designed to help preserve the muscle mass that people often lose when taking weight-loss drugs.

As in previous quarters, Abbott's diagnostics business suffered from plummeting demand for COVID-19 testing. Sales in the diagnostics business totaled $2.21 billion in the first quarter, down 17.6% from a year earlier.

Abbott on Wednesday raised the midpoint of its full-year guidance range. It now expects 2024 adjusted earnings per share in the range of $4.55 to $4.70, versus previous guidance of $4.50 to $4.70. Excluding COVID-19 testing sales, the company now expects full-year organic sales growth of 8.5% to 10%, raising the floor from its previous guidance of 8% to 10%.

The company's second-quarter guidance, however, fell toward the low end of analyst expectations. Abbott said it projects adjusted earnings per share of $1.08 to $1.12 in the second quarter, whereas the FactSet consensus is $1.12.

Abbott's stock (ABT) fell 0.2% premarket on Wednesday and is down 0.8% in the year to date, while the S&P 500 has gained 5.9%.

-Eleanor Laise

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04-17-24 0830ET

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