Abbott(ABT) ZACKS·2024-12-19 14:15Core Insights - Abbott Laboratories' growth in Q3 2024 is primarily driven by a strong recovery in its Nutrition business, particularly through the sales of its leading brand, Ensure [1][3] - The company is experiencing solid growth in emerging markets within its EPD (Established Pharmaceuticals Division) business, although challenges such as the decline in COVID testing revenues and currency fluctuations may limit growth potential [1][5] Sales Performance - Abbott's Nutrition business reported a 3.4% organic growth in Q3 2024, with a notable 9.1% increase in Adult Nutrition, largely attributed to Ensure sales [3] - International adult nutrition experienced high single-digit growth, while Pediatric Nutrition in the U.S. saw a 12% organic growth year-over-year, driven by market share gains in infant formula [4] EPD Business Growth - The EPD business is positioned for sustainable growth, focusing on emerging markets and leveraging its branded generics operating model [5] - EPD sales increased 7% organically in Q3 2024, with key emerging markets showing a 5.4% year-over-year improvement across various therapeutic areas [7] Headwinds - The company is facing a decline in COVID-19 testing revenues, with Rapid Diagnostics sales decreasing 3% and Molecular Diagnostics sales dropping 2.1% organically in Q3 2024 [8][9] - Foreign exchange impacts are significant, with a 2.5% unfavorable year-over-year effect on sales due to currency fluctuations, particularly from the strengthening euro [10] Financial Estimates - The Zacks Consensus Estimate for Abbott's 2024 earnings per share remains at 42.00 billion, indicating a 4.7% increase from the previous year [11]