ABBOTT Q2 EARNINGS BEAT EXPECTATIONS

Abbott's diverse portfolio and COVID-19 tests show the company's resiliency in an unprecedented time.

Abbott Q2 Earnings Beat Expectations

Jul 16 2020

Abbott exceeded analysts’ expectations in the second quarter, beating estimates for sales and EPS even as the economy contracted, thanks to the company’s diversified portfolio and a number of significant product approvals and developments that advanced its pipeline.

For the quarter, Abbott’s worldwide sales of $7.3 billion were driven by Diagnostics — including tremendous demand for the company’s COVID-19 tests — and strong growth in Diabetes Care and Nutrition.

The critical nature of Abbott’s products and the company’s strong product pipeline continued to show Abbott’s resiliency in this challenging environment. Given this recovery and momentum, Abbott is now projecting full-year 2020 adjusted diluted EPS of at least $3.25.

These are the key quarter highlights:

  • Growth trends improved significantly over the course of the second quarter in Abbott's underlying core diagnostics and medical device businesses, which are areas that were initially most impacted by the pandemic. This improvement was spurred by a steady increase in testing and procedures as the demand and availability of healthcare resources began returning to more normal levels.
  • Abbott launched two new COVID-19 tests – one that runs on the company's Alinity m platform and another used on Alinity i. Abbott now has five COVID-19 tests – two lab molecular tests and one rapid test to detect the virus, and two lab-based antibody tests. While molecular tests identify people with the virus, antibody tests can tell whether someone has been previously infected.
  • Continued demand for FreeStyle Libre* with nearly 40% organic growth in the quarter (36.8% reported) versus the prior year. In June, Abbott announced FDA clearance of FreeStyle Libre 2, an integrated continuous glucose monitoring (iCGM) system for adults and children ages 4 and older with diabetes. FreeStyle Libre 2 achieves the highest level of accuracy and performance standards with optional real-time alarms. And just recently, Abbott finalized a collaboration with Tandem Diabetes Care to create integrated diabetes management solutions that combine FreeStyle Libre technology with Tandem's insulin delivery products.
  • Solid growth in Diagnostics, 7.1% organic (4.7% reported), was driven by very strong demand for the company’s COVID-19 tests. Molecular Diagnostics had a standout quarter with 241.4% organic growth (233.6% reported) due to demand for the company's lab-based molecular tests for COVID-19 on its m2000 and Alinity m platforms. Double-digit growth in Rapid Diagnostics of 11% organic (9.6% reported) was spurred by demand for Abbott’s point-of-care COVID-19 molecular test on its ID NOW platform.
  • Approvals for two significant cardiovascular products were secured. In April, Abbott announced CE Mark for its TriClip Transcatheter Tricuspid Valve Repair System, the world's first minimally invasive, clip-based tricuspid heart valve repair device. And in July, the FDA approved Abbott's next-generation Gallant implantable cardioverter defibrillator family of devices to help manage heart rhythm disorders. These devices offer Bluetooth technology and a new patient smartphone app for improved remote monitoring and enhanced patient-physician engagement.
  • Strong worldwide Nutrition sales of $1.9 billion were driven by demand for Ensure, Abbott's market-leading complete and balanced nutrition brand and Pedialyte, the company's oral rehydration brand.

For full financials and reconciliation of non-GAAP measures, you can read our press release, or take a look at some additional materials below:

Abbott President and CEO Robert Ford shared his views on second-quarter performance:

Learn more about how we advanced our product pipeline in Q2.

 

Download a summary of Abbott's earnings highlights here.

*For important safety information on FreeStyle Libre portfolio, please click here.

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