Abbott (NYSE:ABT) shares rose nearly 2% intra-day today after the company raised its full-year income guidance, driven by robust medical device sales and strategic product approvals, positioning the company for a strong finish to the year.
Abbott now forecasts annual diluted earnings per share, excluding specific items, to land between $4.64 and $4.70—up from its previous range of $4.61 to $4.71 and edging close to the consensus estimate of $4.66. CEO Robert Ford highlighted the company’s positive momentum, stating that Abbott is on track to reach the higher end of its initial earnings targets for the year, setting the stage for continued growth into next year.
The company projected organic sales growth for 2024 between 9.5% and 10%, excluding its COVID-19 test sales, for which a reliable forecast remains elusive as the virus shifts from a pandemic to an endemic stage. Excluding COVID-related revenues, Abbott recorded an 8.2% increase in third-quarter sales, slightly below the expected 9.3% and a moderation from last year’s 13.8% growth rate.
Despite softness in its nutrition and diagnostics segments, Abbott’s medical devices segment saw a significant 11.7% year-on-year revenue jump, totaling $4.75 billion and surpassing projections of $4.68 billion. Demand was especially high for Abbott’s continuous glucose monitors, which drove much of the growth in its diabetes care unit and helped offset declines elsewhere, marking a successful quarter for the company’s core device offerings.