Abbott Laboratories (NYSE:ABT) reported impressive financial results in its Second Quarter 2022 Earnings Conference Call on Wednesday (July 20).
Among the company’s announcements:
- Earnings per share increased by more than 20% to $1.43
- Sales climbed on an organic basis by about 14.5 percent, driven primarily by growth in established pharmaceuticals, diagnostics, and medical device markets
Positive Results Lead to Positive Forecast
In light of its second-quarter results, Abbott Laboratories (NYSE:ABT) raised its profits per share guidance to at least $4.90 for the entire year.
The company said this increase demonstrates the robustness and adaptability of its diverse health care strategy as well as outstanding performance in the current macro-environment.
In the call, Abbott Laboratories (NYSE:ABT) also pointed out that with the approval of numerous new products, they are developing a robust R&D pipeline and reinforcing long-term growth platforms.
A More In-Depth Look at Abbott’s Second Quarter Performance:
Established Pharmaceuticals –
This segment of the company’s business saw quarterly revenues rise by more than 9%.
Double-digit growth across a number of nations, including China, Brazil, Colombia, Mexico, and Vietnam, was the driving force behind this quarter’s strong performance.
By achieving double-digit organic sales growth over the previous 18 months, including more than 11% organic growth for the first half of this year, EPD continues to execute and perform at a very high level in a dynamic environment, officials said.
Diagnostics –
Here sales increased by almost 35% throughout the quarter. Sales of COVID tests totaled $2.3 billion during the quarter, with more than 95% of those sales coming from quick tests like ID NOW globally, Panbio internationally, and BinaxNOW in the US.
Due to its accessibility and affordability, including at-home testing, quick testing has established itself as a crucial tool in the fight against the virus, just as company officials predicted some time ago.
Rapid tests have emerged as the best tool for helping people quickly and easily identify new cases and quarantine to help limit and prevent transmission, even while vaccines have been demonstrated to play an important role in reducing the severity of outcomes.
Nutrition –
Abbott Laboratories (NYSE:ABT) began a voluntary recall of specific infant formula products made at one of its US sites in February. The partial manufacturing at that plant was started earlier this month, with its specialized formula EleCare and metabolic formulae as the first products.
The testing to restart the production of Similac is currently in its final stages. Also, as a reminder, it takes several weeks for the goods to appear on store shelves after the start of production. Having said that, the company plans to make every effort to hasten product delivery to merchants so that families can get the formula they require as quickly as possible.
Since Abbott Laboratories (NYSE:ABT) increased supply to the US by utilizing our worldwide manufacturing network, notably by importing goods from its FDA-registered factory in Ireland, it has already begun to see some share recovery at retail.
Medical Devices –
In this segment, sales increased by 7.5% during the quarter. Cardiovascular procedure trends continued to improve, but growth in the quarter was a little lower than what was predicted back in April due to a number of factors, most notably difficulties with healthcare staffing, COVID surges, and lockdowns in China that were put in place as part of their efforts to stop the virus’s spread.
In the second part of the year, Abbott Laboratories (NYSE:ABT) anticipates that these dynamics will improve.
Already, the company’s user base has surpassed 4 million users worldwide, and FreeStyle Libre sales in the diabetes care sector increased by more than 25% on an organic basis during the quarter.
The US FDA has approved Abbott’s FreeStyle Libre 3 continuous glucose monitoring system, the world’s smallest and thinnest wearable glucose sensor that delivers data with the greatest level of accuracy in the market.
Likewise, Aveir, the company’s leadless pacemaker for the control of sluggish cardiac rhythms, received US approval. Aveir was particularly created to be extensible to a two-chamber device, which is now under development, and retrievable if the device ever needs to be removed.
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