Abbott Laboratories (ABT.US) loses 1.50% in pre-market trading after releasing Q4 2024 results. Abbott has concluded 2024 on a high note, showcasing robust performance and delivering results that align with market expectations. The company remains positioned for substantial growth in 2025, driven by rising demand for its cutting-edge medical devices, particularly continuous glucose monitoring systems.
Key Financial Highlights (2024):
- Fourth-Quarter Performance:
- Reported sales of $11 billion, marking a 7.2% increase.
- Organic sales (excluding COVID-19 testing) grew by 10.1%.
- Adjusted diluted EPS: $1.34, in line with market estimates.
- Full-Year 2024 Performance:
- Total sales of $42 billion, reflecting a 4.6% increase on a reported basis.
- Organic sales (excluding COVID-19 testing) climbed by 9.6%.
- GAAP diluted EPS: $7.64; Adjusted diluted EPS: $4.67.
- Gross margin improved by 70 basis points on an adjusted basis.
- Achieved the upper range of its initial guidance for both sales growth and adjusted EPS.
- Medical Devices:
- Full-year sales reached $19 billion, a $2 billion increase YoY.
- Flagship products such as FreeStyle Libre, Navitor, and Amplatzer Amulet drove double-digit growth, with FreeStyle Libre sales soaring 22.7% YoY.
Guidance for 2025:
Abbott projects another year of strong growth across its business segments:
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app- Organic Sales Growth: 7.5%–8.5%.
- Adjusted Operating Margin: 23.5%–24.0% (150 basis points increase YoY).
- Adjusted Diluted EPS: $5.05–$5.25 (midpoint reflects double-digit growth).
The company's innovation pipeline remains a key driver of future performance, with over 15 new growth initiatives announced in 2024, including new product launches and expanded treatment indications.
Strategic and Operational Highlights:
- Dividends: Abbott declared its 404th consecutive quarterly dividend, reflecting a 53-year streak of annual increases. The dividend payout stands at $0.59 per share, positioning Abbott as a member of the S&P 500 Dividend Aristocrats Index.
- Market Tailwinds: Increased awareness of diabetes care, broader insurance coverage, and patient preference for non-invasive devices like FreeStyle Libre are bolstering demand.
- Strong R&D Productivity: The company continues to prioritize innovation, leveraging its diverse healthcare portfolio to meet rising global demand.
CEO Commentary:
"We closed the year with strong momentum, achieving the highest sales and EPS growth of 2024 in the fourth quarter," said Robert B. Ford, Chairman and CEO. "Our track record of delivering on commitments positions us for another strong year in 2025."
Forward-Looking Considerations:
Abbott’s focus on core business growth, disciplined cost management, and a pipeline of innovative products align with its vision of long-term shareholder value creation. While the company has not disclosed specific GAAP financial measures for 2025, it remains committed to delivering sustainable growth through strategic investments and operational excellence.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
