Investors responded positively to Abbott Laboratories’ recent earnings report, resulting in a 1.5% rise in its share price, surpassing the S&P 500 index’s 0.5% increase. The healthcare company released its third-quarter results, showing modest but notable performance.
Abbott’s revenue for the quarter reached nearly $10.64 billion, marking a year-over-year increase of about 5%. The company’s non-GAAP (adjusted) net income rose by 6% to $2.12 billion, equating to $1.21 per share. These figures exceeded consensus analyst estimates, which predicted revenue of $10.56 billion and adjusted net income per share of $1.20.
The primary driver of Abbott’s revenue growth was its medical devices segment, the largest of its four units, which grew by 14% to nearly $4.75 billion. The nutrition segment also performed well, achieving a 10% increase to almost $2.1 billion.
CEO Robert Ford expressed optimism in the earnings release, citing the company’s strong performance as a basis for potentially reaching the higher end of its initial guidance ranges for the year. With this positive outlook, Abbott’s management has raised the midpoint of its adjusted earnings guidance for full-year 2024 to a range of $4.64 to $4.70 per share. They also project revenue growth of 9.5% to 10% over the 2023 figures.