Summary
Abbott Laboratories reported net sales of $10.41 billion for the third quarter of 2022, a 4.7% decrease year-over-year, impacted by a 6.0% unfavorable foreign exchange impact. Excluding the impact of foreign exchange, total net sales saw a 1.3% increase, driven by growth in Medical Devices and Established Pharmaceuticals, though this was partially offset by a decline in Nutritional Products and COVID-19 testing-related revenues. For the first nine months of 2022, net sales increased by 6.2% to $33.56 billion, with a 10.9% increase excluding foreign exchange impacts. This growth was significantly boosted by a substantial increase in COVID-19 testing-related sales, alongside positive contributions from Medical Devices and Established Pharmaceuticals. Despite a dip in quarterly sales, the company's financial performance for the nine-month period shows resilience. Net earnings for the quarter decreased to $1.435 billion ($0.81 diluted EPS) from $2.10 billion ($1.17 diluted EPS) in the prior year, primarily due to factors including the voluntary product recall in the Nutritional segment and increased manufacturing and supply chain costs. However, nine-month net earnings rose to $5.90 billion ($3.32 diluted EPS) from $5.08 billion ($2.83 diluted EPS) in the prior year. The company continues to manage its capital through share repurchases and dividends, with $3.116 billion remaining under its current share repurchase program. The company also noted an impairment charge of $111 million on certain IPR&D intangible assets within the Medical Devices segment.
Financial Highlights
51 data points| Revenue | $10.41B |
| Cost of Revenue | $4.63B |
| Gross Profit | $5.78B |
| R&D Expenses | $782.00M |
| SG&A Expenses | $2.73B |
| Operating Expenses | $8.64B |
| Operating Income | $1.77B |
| Interest Expense | $141.00M |
| Net Income | $1.44B |
| EPS (Basic) | $0.82 |
| EPS (Diluted) | $0.81 |
| Shares Outstanding (Basic) | 1.75B |
| Shares Outstanding (Diluted) | 1.76B |
Key Highlights
- 1Q3 2022 total net sales were $10.41 billion, down 4.7% year-over-year, with a 6.0% unfavorable foreign exchange impact. Excluding FX, sales increased 1.3%.
- 2Nine-month 2022 total net sales grew 6.2% to $33.56 billion. Excluding FX, sales increased 10.9%, largely driven by COVID-19 testing sales.
- 3Nutritional Products segment sales declined significantly (14.9% in Q3, 9.8% YTD excluding FX) due to a voluntary product recall and production stoppage in the U.S. Pediatric Nutritionals category.
- 4Medical Devices segment showed solid growth (3.0% in Q3, 8.4% excluding FX YTD), particularly in Diabetes Care (FreeStyle Libre), Electrophysiology, and Structural Heart.
- 5Established Pharmaceuticals segment saw positive growth (4.9% in Q3, 5.2% YTD excluding FX), driven by Key Emerging Markets.
- 6Net earnings for Q3 2022 were $1.435 billion ($0.81 diluted EPS), down from $2.10 billion ($1.17 diluted EPS) in Q3 2021, impacted by the nutritional recall and rising costs.
- 7Nine-month net earnings increased to $5.90 billion ($3.32 diluted EPS) from $5.08 billion ($2.83 diluted EPS) in the prior year, benefiting from higher COVID-19 testing revenue.
- 8Abbott repurchased $2.965 billion of common shares in the first nine months of 2022 and has $3.116 billion remaining under its current share repurchase authorization.