Abbott Laboratories (ABT) offers products in four business segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Cardiovascular and Neuromodulation Products. In this series, we’ll explore Abbott’s financials and valuation, and analysts’ views on its stock.
Abbott’s top line
In the third quarter of this year, Abbott’s total revenue rose YoY (year-over-year) to $7.66 billion from $6.83 billion. The company generated $2.71 billion from the US market and $4.95 billion from the international market, compared with $2.31 billion and $4.52 billion, respectively, in the third quarter of 2017.
Established Pharmaceutical Products revenue fell YoY to $1.16 billion from $1.17 billion, while Nutritional Products sales rose YoY to $1.84 billion from $1.77 billion.
Sales from Abbott’s Diagnostic Products segment, which includes core laboratory, molecular, point of care, and rapid diagnostics, surged YoY to $1.82 billion from $1.28 billion, boosted by rapid diagnostic sales of $481.0 million.
Cardiovascular and Neuromodulation Products sales rose YoY to $2.30 billion from $2.22 billion. Abbott’s other revenue, consisting of diabetes care sales, rose YoY to $532.0 million from $387.0 million. This increase was due to strong performance from the company’s sensor-based continuous glucose monitoring system, FreeStyle Libre, which eliminates the need for routine fingersticks in diabetes patients. Next, we’ll look at Abbott’s gross margin trends.