Revenue and EPS growth trajectory
In its fourth-quarter earnings press release, Abbott Laboratories (ABT) reported worldwide sales of $30.6 billion in fiscal 2018, a YoY increase of 11.6%. The company also reported adjusted diluted EPS of $2.88 in fiscal 2018, a YoY rise of 15.2%.
In fiscal 2018, Abbott Laboratories’ Diagnostics segment reported revenues of $7.50 billion, a YoY rise of 33.5%. According to the fourth-quarter conference call, the ongoing successful commercial launch of Alinity in Europe and other international markets is a key revenue driver for the company’s diagnostics business. The company is also expecting to secure FDA approval for certain tests that can be performed with Alinity in the next few months, which is expected to play a pivotal role in accelerating the launch of Alinity in the US market in fiscal 2019.
According to the company’s fourth-quarter conference call, in fiscal 2018, Abbott Laboratories also reported several new product launches such as a molecular rapid test for infectious diseases, cardiac care tests, and diabetes tests in its rapid diagnostics business. In fiscal 2018, Abbott Laboratories’ Medical Devices segment reported global sales of $11.37 billion, a YoY rise of 10.1%.
The company is focused on expanding its presence in the underserved heart mapping and ablation segment. In heart mapping, Abbott launched its Advisor HD Catheter in Europe in January 2018, while the technology secured FDA approval in May 2018. On January 21, 2019, the company issued a press release announcing FDA approval for its TactiCath Contact Force Ablation Catheter for treating atrial fibrillation.
In its Structural Heart segment, Abbott Laboratories aims to expand MitraClip’s label based on favorable data from the landmark COAPT study. According to the company’s fourth-quarter conference call, an FDA approval for MitraClip in the mitral regurgitation indication can prove to be a gateway to a multi-billion cardiac device opportunity for Abbott Laboratories in future years.
Abbott Laboratories’ FreeStyle Libre has been reporting solid uptake in the diabetes care segment in the US. Additionally, the launch of Libre 2.0 version in Europe in the fourth quarter is expected to further boost its sales potential in future years.