Summary
Abbott Laboratories reported a slight decrease in net sales for the third quarter of 2023, down 2.6% year-over-year to $10.143 billion. This decline was primarily driven by a significant drop in COVID-19 testing sales, which fell from $1.7 billion in Q3 2022 to $305 million in Q3 2023. Excluding these COVID-19 related sales, Abbott's total net sales actually increased by 12.6% on a reported basis and 14.1% excluding foreign exchange impacts, indicating robust underlying growth across its other business segments. The company's Medical Devices and Nutritional Products segments showed strong performance, with Medical Devices growing 16.6% and Nutritional Products up 15.5% year-over-year in the third quarter. The Established Pharmaceutical Products segment also saw a modest increase of 3.2%. However, the Diagnostic Products segment experienced a significant 32.7% decline, largely due to the aforementioned decrease in COVID-19 testing demand. For the first nine months of 2023, total net sales decreased 11.0% to $29.868 billion, also heavily influenced by the drop in COVID-19 testing revenue. Net earnings remained stable for the third quarter at $1.436 billion, compared to $1.435 billion in the prior year, with diluted earnings per share at $0.82.
Financial Highlights
52 data points| Revenue | $10.14B |
| Cost of Revenue | $4.61B |
| Gross Profit | $5.54B |
| R&D Expenses | $672.00M |
| SG&A Expenses | $2.72B |
| Operating Expenses | $8.50B |
| Operating Income | $1.65B |
| Interest Expense | $166.00M |
| Net Income | $1.44B |
| EPS (Basic) | $0.82 |
| EPS (Diluted) | $0.82 |
| Shares Outstanding (Basic) | 1.74B |
| Shares Outstanding (Diluted) | 1.75B |
Key Highlights
- 1Total net sales for Q3 2023 were $10.143 billion, a decrease of 2.6% year-over-year, primarily impacted by a significant decline in COVID-19 testing revenue.
- 2Excluding COVID-19 testing sales, Abbott's net sales increased by 12.6% in Q3 2023, demonstrating strong underlying business performance.
- 3Medical Devices segment sales grew 16.6% in Q3 2023, driven by strong performance in Diabetes Care (FreeStyle Libre sales up 26.2% YTD), Structural Heart, and Electrophysiology.
- 4Nutritional Products segment sales increased 15.5% in Q3 2023, with U.S. Pediatric Nutritionals showing significant recovery (up 32.8% YTD) and Adult Nutritionals growing consistently.
- 5Diagnostic Products segment sales decreased 32.7% in Q3 2023, largely attributable to the sharp decline in demand for COVID-19 tests, particularly in Rapid Diagnostics which saw a 66.2% YTD drop excluding COVID-19 tests.
- 6Net earnings for Q3 2023 were $1.436 billion, flat year-over-year, with diluted EPS of $0.82.
- 7The company acquired Cardiovascular Systems, Inc. (CSI) for $851 million in April 2023 and Bigfoot Biomedical, Inc. in September 2023, bolstering its Medical Devices portfolio, particularly in diabetes management and vascular treatments.