Abbott Laboratories' Stock Drops Following Solid Q2 Earnings, Despite Diagnostics Revenue Decline
Abbott Laboratories' stock dropped despite solid Q2 earnings, with sales exceeding expectations. Growth was seen in diabetes care, electrophysiology, and structural heart sectors, while diagnostics sales declined due to a drop in COVID-19 testing revenue. Abbott received FDA approvals and CE marks for various medical devices and had a strong performance in the Medical Devices segment. The company's R&D pipeline contributed to its growth with new product approvals and treatment indications.
Abbott Laboratories' shares dropped after reporting Q2 2024 results, with sales at $10.377 billion and EPS at $1.14, exceeding expectations. Despite a decline in COVID-19 testing sales, other sectors showed growth, particularly in diabetes care, electrophysiology, and structural heart. Nutrition sales increased by 3.5% to $2.15 billion. However, diagnostics sales fell 5.3% due to the drop in COVID-19 testing revenue. The company received FDA approvals and CE Marks for various medical devices and cleared two continuous glucose monitoring systems.
Abbott Laboratories (ABT) reported its second-quarter 2024 financial results, showcasing a sales growth of 4.0% and an organic sales growth for the underlying base business of 9.3% [1]. This growth was fueled primarily by double-digit growth in the Medical Devices segment.Despite a decline in COVID-19 testing sales, Abbott's performance was buoyed by strong growth in other sectors. The Diabetes Care division experienced a 3.5% increase in sales to $2.15 billion [1]. The Electrophysiology and Structural Heart segments also showed growth, with Abbott announcing FDA approvals and CE Marks for various medical devices [1].
However, the Diagnostics segment experienced a 5.3% decline due to the drop in COVID-19 testing revenue [1]. This decline was offset by Abbott's continued success in the Medical Devices segment and the approval of new products.
In April, Abbott secured FDA approval for the Esprit™ below-the-knee (BTK) system, a groundbreaking innovation for people with peripheral artery disease [1]. In June, Abbott received FDA clearance for two new over-the-counter continuous glucose monitoring systems, Lingo™ and Libre Rio™, and obtained CE Mark for its AVEIR® dual chamber (DR) leadless pacemaker system [1].
Abbott's R&D pipeline has also contributed to the company's growth, with 10 new growth opportunities announced during the first half of 2024 [1]. These opportunities include new product approvals and new treatment indications, further solidifying Abbott's position as a leader in the healthcare industry.
References:
[1] Abbott Reports Second-Quarter 2024 Results and Raises Full-Year Guidance. (2024, July 18). Retrieved from https://abbott.mediaroom.com/2024-07-18-Abbott-Reports-Second-Quarter-2024-Results-and-Raises-Full-Year-Guidance
