Abbott (NYSE: ABT) shares fell this today despite first-quarter results that came in ahead of the consensus forecast.
Shares of ABT fell more than 3% to $105.81 apiece by later afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — dipped slightly.
The Abbott Park, Illinois-based medtech giant reported profits of $1.2 billion. That equals 70¢ per share on sales of $9.96 billion for the quarter ended March 31, 2024.
Abbott recorded a 7.1% bottom-line slide on a year-over-year sales uptick of 2.2%.
Adjusted to exclude one-time items, earnings per share came in at 98¢. That landed 3¢ ahead of expectations on Wall Street. Sales also beat the forecast as experts estimated $9.88 billion in revenue.
Medical Devices brought in nearly half of Abbott’s total revenue for the quarter, with $4.5 billion in sales — good for 14.2% year-over-year growth. Diabetes Care led the way within Medical Devices, with growth of 19.5%. Electrophysiology (16.2%), Neuromodulation (15.3%), Structural Heart (11.7%), Vascular (11.7%), Heart Failure (8.5%) and Rhythm Management (6.8%) followed.
Abbott attributed its Medical Device sales growth to recently launched products, including its Amplatzer Amulet, Navitor, TriClip and Aveir. The company also highlighted FreeStyle Libre CGM sales spearheading the Diabetes growth, as the company reported $1.5 billion in Libre revenue. That represents 22.4% year-over-year growth.
With a strong first quarter in the bag, Abbott increased its full-year expectations. It now projects adjusted EPS between $4.55 and $4.70. That marks an increase of the low end from the company’s previous projection of $4.50. The company also raised the low end of its forecast for 8%-10% sales growth, now projecting 8.5% to 10%.
“Our first-quarter results reflect a strong start to the year, and we are raising our full-year sales and EPS guidance,” said Robert B. Ford, chair and CEO, Abbott. “This was the fifth consecutive quarter that we delivered double-digit organic sales growth in our underlying base business, which included particularly strong results in Medical Devices and Established Pharmaceuticals.”
Note on the Abbott Volt pulsed field ablation system
Abbott said that all patients in its Volt CE mark study have been successfully treated, and its U.S. FDA investigational device exemption (IDE) trial is now underway.
Christopher Piorkowski, Abbott chief medical officer and DVP of medical affairs for EP, shared the update on LinkedIn.
“Pleased to share all patients in Abbott’s Volt CE mark study have been successfully treated, and the U.S. FDA IDE trial is now underway, marking two pivotal milestones in our efforts to demonstrate the safety and effectiveness of the Volt PFA system in treating symptomatic, paroxysmal, and persistent atrial fibrillation,” he wrote. “Thank you to all physician investigators around the world and our wonderful Abbott colleagues. What a great achievement and incredible teamwork!”
At the beginning of the year, Abbott reported the first global procedures conducted with its new Volt pulsed field ablation (PFA) system.
Volt treats patients battling common abnormal heart rhythms like AFib. It marks Abbott’s entry into the crowded PFA space alongside companies like Medtronic, Boston Scientific and Johnson & Johnson’s Biosense Webster.
Medical Design & Outsourcing: Abbott bets on balloons in pulsed field ablation battle
The analysts’ view
BTIG’s Marie Thibault and Sam Eiber wrote that Abbott’s Medical Devices segment “impressed yet again.” They were surprised by the reaction of investors selling off shares, saying the earnings report “was a solid print that allowed [Abbott] to raise its full-year guide earlier than usual.”
They attributed the stock weakness to a lighter second-quarter guidance, ongoing litigation and a miss in COVID-19 diagnostics.
“However, we think there remains opportunity for beats on sales and [adjusted] EPS throughout the year, led by sustainable growth and new product introductions and expansions in Medical Devices,” they wrote. “We continue to like its consistency, sales growth, improving margin profile, device pipeline, diverse business segments, and dividend king status.”
