Rapid Diagnostics’ growth projections
Abbott Laboratories (ABT) expects its Rapid Diagnostics segment to report revenues of ~$2 billion for fiscal 2018. It expects revenues of $500 million in the fourth quarter. But those revenues aren’t considered when calculating and forecasting Abbott’s organic revenue growth rates for fiscal 2018.
In the first nine months of 2018, Abbott Laboratories’ Rapid Diagnostics business reported revenues of $1.52 billion. Of those revenues, $855 million came from the US market, and the remaining $669 million came from international markets.
The above diagram is a snapshot of the revenue performances of the subsegments of Abbott Laboratories’ Diagnostics segment since 2014.
Core Laboratory revenue growth trends
In the first nine months of 2018, Abbott Laboratories’ Core Laboratory business reported revenues of $3.23 billion, which was a YoY organic growth of 7.4% and a reported growth of 9.1%. Of those revenues, $725 million came from the US market, which was a YoY organic growth and a reported growth of 6.9%. International markets contributed $2.51 billion of revenues, which was a YoY organic growth of 7.6% and a reported growth of 9.7%.
According to the company’s third-quarter earnings conference call, Abbott expects to continued above-market growth rates for its Core Laboratory business. That could be mainly due to the rapid geographic market expansion of its Alinity suite of instruments. Since the launch of these instruments in the European market in 2017, Alinity has seen a rapid uptake. The European market currently accounts for almost half of Alinity’s total placements.
Next, let’s look at the growth trends for Abbott Laboratories’ Medical Devices business.