NEW YORK – Abbott's third quarter Diagnostics revenues declined nearly 2 percent year over year, the company said on Wednesday.
For the three months ended Sept. 30, the Abbott Park, Illinois-based firm reported overall revenues of $10.64 billion, up 5 percent from $10.14 billion a year ago and beating the consensus Wall Street estimate of $10.55 billion.
The company "accomplished several key objectives this quarter, which included entering new strategic partnerships, launching new products, and making several key advancements in our R&D pipeline," Abbott CEO Robert Ford said on a conference call to discuss the firm's financial results.
Abbott's Q3 Diagnostics revenues fell to $2.41 billion from $2.45 billion in the prior-year quarter. Excluding COVID-19 testing sales, the Diagnostics business grew 3 percent on an organic basis year over year, the company said. Within Diagnostics, Core Laboratory Q3 revenues were essentially flat on a reported basis at $1.31 billion; Molecular revenues fell 4 percent to $128 million from $133 million; Point-of-Care revenues rose 4 percent year over year to $146 million from $140 million; and Rapid Diagnostics revenues fell 4 percent to $824 million from $862 million. Excluding COVID-19 testing sales, Core Laboratory revenues climbed nearly 5 percent, Molecular revenues rose 2 percent, Point-of-Care revenues rose 5 percent, and Rapid Diagnostics revenues were flat.
Ford said that sales in the Core Laboratory division were driven by global demand for routine diagnostic testing and continued adoption of Abbott's diagnostics systems. He also noted that the company had recent large account wins that will "help continue to sustain our growth into 2025."
In its Rapid Diagnostics and Point-of-Care businesses, the firm continued to "expand our test menus and capitalize on the growing demand for respiratory tests that can be performed at home or in more traditional healthcare settings," Ford added.
However, the Core Lab division saw lower sales than expected, which Ford attributed to the implementation of the diagnostics volume-based procurement program in China. Excluding the China business, the international Core Lab segment saw sales growth in the double digits, he said.
Abbott has already experienced pricing impacts and been through the VBP process for other business segments, he added, and going forward there will be additional impacts including those related to transitions, such as "making pricing accommodations with inventory that's already in the channel."
China "continues to be a very attractive market for us," he added.
Ford also noted that Abbott has been making investments into its Diagnostics business and mentioned a new system it will be launching for a "whole new segment of the diagnostics industry." It is a longer-term program that's been in the works for a few years, although he did not provide more information.
The firm's global COVID-19 testing-related sales fell to $265 million in the quarter from $305 million reported a year ago.
In its other businesses, Nutrition revenues were essentially flat on a reported basis and rose 3 percent on an organic basis at $2.07 billion; Established Pharmaceuticals rose 3 percent on a reported basis and 7 percent on an organic basis to $1.41 billion from $1.37 billion; and Medical Devices rose 12 percent on a reported basis and 13 percent on an organic basis to $4.75 billion from $4.25 billion.
Abbott reported Q3 net earnings of $1.65 billion, or $.94 per share, compared to $1.44 billion, or $.82 per share, in the year-ago period. Adjusted EPS for the recently completed quarter was $1.21, beating analysts' consensus estimate of $1.20.
The firm increased the midpoint of its guidance range, saying it expects full-year 2024 diluted EPS of between $3.34 and $3.40 and adjusted EPS to between $4.64 and $4.70. The company also projects fourth-quarter diluted EPS to be between $.96 and $1.02 and adjusted EPS of between $1.31 and $1.37.
Ford noted that this is the third time Abbott has raised its full-year EPS guidance.
He also said that the company is on track to finish the year at the high end of the initial guidance it provided in January.
In Wednesday afternoon trading on the New York Stock Exchange, shares of Abbott were up 2 percent to $118.07.