Abbott Reports Q4 Revenue Over $10 Billion Driven by Strong Medical Devices and Nutrition Segments

Jan 25, 2024 18:31 CST Updated 18:31

Abbott

Diagnostic and pharmaceutical product manufacturers

Wednesday, U.S. stock market pre-market,Abbott(ABT.US) announced its financial results for the fourth quarter of 2023. Driven by strong performance in the medical device and nutrition sectors, the company's Q4 revenue exceeded expectations. Data shows,AbbottQ4 Revenue Increased by 1.5% Year-over-Year to $10.24 Billion, surpassing the analysts' average forecast of $10.186 billion. Organic sales growth excluding COVID-19 testing-related sales increased by 11%.Net profit attributable to shareholders: 1.594 billion yuan, a year-on-year increase of 54.91%。

Abbott2023Full-year revenue of $40.109 billion, net profit attributable to shareholders of $5.723 billion。

By business division, the medical device segment reported revenue of $4.44 billion in the fourth quarter, representing a year-over-year increase of 17.5%, surpassing market expectations of $4.33 billion. Among this,Sales of the FreeStyle Libre continuous glucose monitor increased by 25.5%,Sales related to COVID testing were $288 million, down from $1.07 billion in the same period last year.Nutritional business revenue was $2.04 billion, a year-on-year increase of 12%.Diagnostic business revenue was $2.53 billion, a year-on-year decrease of 23%, in line with market expectations.Generic drug sales were $1.22 billion, up 0.5% year-over-year but below market expectations of $1.32 billion; diabetes care sales reached $1.55 billion, up 22% year-over-year and above expectations of $1.52 billion.

After the sharp decline in COVID testing business,AbbottHopes to refocus on its core areas and seek to drive future growth through products such as its continuous glucose monitoring system.The company aims to double the annual sales of FreeStyle Libre to approximately $10 billion by 2028.AbbottCEO Robert Ford said earlier this month that more than 5 million people globally use the device, but there are over 500 million people worldwide with diabetes.

Although the recent rise of weight-loss drugs has hit the stock prices of diabetes device manufacturers,AbbottHas been trying to convince investors that the company might actually benefit from this trend. Data released by the company last year showed a significant increase in the number of people using FreeStyle Libre while taking GLP-1 drugs, and those taking the drugs had higher compliance with the device.

AbbottAbbott is also tapping into the potential of GLP-1 in its nutrition business, which produces nutritional supplement drinks like Ensure and other products.Fordstated that since many people taking GLP-1 drugs face unnecessary muscle loss,AbbottSeeking progress that can "offset or partially alleviate these side effects."

Looking to the future,AbbottAbbott Laboratories stated that the adjusted earnings per share for the full year 2024 is expected to be between $4.50 and $4.70, with the midpoint of the range below the analysts' expectation of $4.64. Organic sales growth (excluding sales related to COVID-19 testing) is expected to be between 8-10%.

▲ Source: Zhitong Finance

▲ Please indicate the source above when reprinting.

Disclaimer: This article is intended solely for the purpose of information transmission and is for reference only. It does not constitute any advice on investment or treatment; please evaluate carefully. If it involves issues related to the content, copyright, or other aspects of the work, to protect the rights and interests of both parties, please contact us and we will handle it immediately. If any platform reprints this article, it must take responsibility for the content of the article itself; the Medical Device Innovation Network is not responsible for any secondary dissemination caused by the reprint.

END

P R E V I E W

6 Billion, Another Major Move by Haier in the Medical Field

Hiring, Promotion, Dismissal, Resignation—The Most Important Personnel Changes in the Medical Device Field in 2023

Major Breakthrough! New Progress for China-Produced World's Highest Frequency Intravascular Ultrasound System