The Rising Influence of Rising Affluence

[DewDiligence]

ABT reports 2Q23 results—increases 2023 guidance_for_organic_sales_growth:

https://abbott.mediaroom.com/2023-07-20-Abbott-Reports-Second-Quarter-2023-Results-Increases-Outlook-For-Underlying-Base-Business

2Q23 GAAP and non-GAAP EPS were $0.78 and $1.08, respectively, down from $1.14 and $1.43 in 2Q22. The YoY declines were due to sharply lower COVID-diagnostics revenue: $263M in 1Q23 vs $2.3B in 2Q22. (ABT now expects 2023 COVID-diagnostics sales of $1.3B, which implies ~$300M for 2H23.)

2Q23 FreeStyle Libre sales were $1.3B, +25% YoY. FreeStyle Libre is already the largest-selling medical device, ever, from any company.

ABT’s full-year 2023 guidance is essentially unchanged from three months ago: GAAP EPS of $3.02-3.22; and non-GAAP EPS (which excludes restructuring costs and FX) of $4.30-4.50. ABT was able to retain the pre-existing guidance despite the reduced forecast for 2H23 COVID diagnostics because the 2H23 outlook for ABT’s organic (non-COVID) business has improved.

Specifically, ABT now expects 2023 organic sales growth in the low double digits, an upgrade from the guidance three months ago of “at least high dingle digits.” 2Q23 organic sales growth was 11.5%, up from 10% in 1Q23.

Please see #msg-172393746 for a breakdown of ABT’s 2Q23 sales by business segment.