Abbott Laboratories reported third-quarter results that exceeded expectations on Wednesday, showcasing robust double-digit revenue growth in its medical devices segment. The healthcare company also narrowed its full-year earnings outlook range, which indicates confidence in its financial trajectory.
The adjusted earnings increased to $1.21 per share for the quarter ending September 30, compared to $1.14 a share the previous year, surpassing the consensus estimate of $1.20 compiled by Capital IQ. Meanwhile, sales saw a year-over-year increase of 4.9%, reaching $10.64 billion, which also edged past Wall Street's prediction of $10.55 billion.
Following this news, Abbott's stock experienced an uptick of nearly 2.6% in Wednesday's trading session. However, it wasn't all positive; diagnostics sales experienced a decline of 1.5% year over year, totaling $2.41 billion, primarily affected by the diminishing revenue from COVID-19 testing. The nutrition segment also faced a slight downturn of 0.3%, bringing in $2.07 billion, whereas the established pharmaceuticals division saw a rise of 2.7%, totaling $1.41 billion. The revenue generated from the global medical devices business rose impressively by 12%, amounting to approximately $4.75 billion.
This growth was significantly driven by a notable 17% increase in diabetes care products. Abbott also highlighted substantial double-digit sales growth across various areas including electrophysiology, heart failure, and structural heart supplies. Chief Executive Officer Robert Ford commented on the company's quarterly performance, emphasizing, 'Our results this quarter demonstrate the strength of our diversified business model.
We're well-positioned to achieve the upper end of our initial guidance ranges for the year and have great momentum heading into next year.' Looking ahead to 2024, Abbott is now projecting adjusted earnings per share (EPS) to range between $4.64 and $4.70, slightly adjusted from its earlier forecast of $4.61 to $4.71.
The market anticipates normalized EPS to be around $4.66. Additionally, the company has reiterated its organic sales growth guidance ranging from 9.5% to 10%, which excludes revenue related to COVID testing for the current fiscal year. For the upcoming three-month period, Abbott anticipates adjusted EPS to be in the range of $1.31 to $1.37, in contrast to the current Street estimate of $1.33.
Chief Financial Officer Philip Boudreau elaborated on a recent earnings call that foreign exchange fluctuations are expected to present a headwind of less than 1% on sales for the fourth quarter, in line with current currency rates. 'As we move forward into the fourth quarter, with diminishing COVID-related comparisons, I believe this quarter is shaping up well, and we should see our EPS replicate double-digit growth, returning to the growth model we established before the pandemic,' Ford remarked during the call, highlighting strong potential for recovery in the company's financial performance.
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