Abbott Laboratories (NYSE:ABT) has reported Q3 2023 adjusted earnings of $1.14 per share, surpassing the Consensus Estimate by 3.6%, though it represents a 0.9% decrease from the previous year due to adjustments that included 32 cents of non-recurring items. GAAP EPS increased 1.2% year over year to 82 cents.

Global sales for the third quarter reached $10.14 billion, exceeding the Consensus Estimate by 3.6% but declining by 2.6% on a reported basis compared to the previous year. However, on an organic basis (excluding foreign exchange impact, the Cardiovascular Systems acquisition, business exit impact, and COVID-19 testing sales impact), sales surged by 13.8% year over year.

Abbott’s performance across its four segments—Established Pharmaceuticals, Medical Devices, Nutrition, and Diagnostics—is as follows.

Established Pharmaceuticals reported a 3.2% increase in product sales on a reported basis (11.1% organically) to $1.37 billion.

The Medical Devices segment achieved a 16.6% increase in sales on a reported basis (14.7% organically) to $4.25 billion.

Nutrition sales rose by 15.5% year over year on a reported basis (18.1% organically) to $2.07 billion.

Diagnostics sales were down 32.7% on a reported basis (31.9% organically) to $2.45 billion.

Despite these positive results, gross profit fell by 4.2% to $5.54 billion in the reported quarter, with the gross margin contracting to 54.6%. SG&A expenses declined by 0.3% to $2.72 billion, while R&D expenses fell by 14.1% to $672 million. The adjusted operating profit was $2.14 billion, a 5.5% decrease, and the adjusted operating margin contracted to 21.1%.

Looking forward, Abbott provided updated guidance for full-year 2023. Full-year adjusted earnings are expected to be in the range of $4.42-$4.46. The company anticipates full-year 2023 organic sales growth in the low double digits and COVID-19 testing-related sales of around $1.5 billion.

In conclusion, Abbott reported better-than-expected Q3 earnings and revenues, highlighting significant growth in the underlying base business. The company has been making strategic acquisitions and advances in medical devices, particularly in the diabetes care segment, but it continues to face challenges related to declining COVID-19 testing-related sales.