Abbott raises 2024 outlook after MedTech strength in Q2

Abbott Laboratories (NYSE:ABT) increased its full-year guidance on Thursday after its financials for Q2 2024 exceeded Street forecasts, thanks mainly to its robust MedTech business.

The North Chicago, Illinois-based medical device maker reported $10.4B in sales for the quarter as its MedTech division generated $4.7B in sales with ~10% YoY growth driven by its diabetes segment, which added $1.6B with ~16% YoY growth.

However, its diagnostics division contracted ~5% year over year, adding $2.2B in sales to the topline as COVID-19 testing sales declined ~61% year over year globally.

Meanwhile, Abbott’s (ABT) nutrition businesses generated $2.2B in sales with ~4% YoY growth, and sales for the company’s pharma segment remained flat generating $1.3B in sales.

ABT’s bottom line improved ~6% YoY during the quarter to $1.14 in adjusted earnings per share, as its gross margin improved to ~51% from ~50% in the year-ago quarter.

“We have a lot of positive momentum heading into the second half of the year and are raising our full-year guidance,” CEO Robert Ford remarked.

Abbott’s (ABT) revised guidance for 2024 stands at $4.61–$4.71, while its Q3 guidance is at $1.18–$1.22, both in line with the consensus.

The company also increased the midpoint of its ex-COVID testing sales growth guidance for 2024 to 9.75% in organic terms from 9.25% projected previously.