Abbott Laboratories Earnings
Abbott Laboratories (NYSE: ABT) has reported strong financial performance for the first quarter of 2025, showcasing the resilience and growth of its diversified business model. The company achieved a 4.0% increase in sales on a reported basis and recorded an organic sales growth of 6.9%. When factoring out the impact from COVID-19 testing-related sales, organic growth was even more impressive at 8.3%. This robust performance was highlighted by a double-digit growth in earnings per share (EPS), with the GAAP diluted EPS at $0.76 and adjusted diluted EPS at $1.09.
Abbott Laboratories Results
Abbott Laboratories presented key financial metrics for the first quarter, showing comparisons with previous quarters and expectations. Here’s a summary:
| Metric | Q1 2025 | YoY Change | QoQ Change |
|---|---|---|---|
| Total Revenue (Reported) | +4.0% | N/A | N/A |
| Total Revenue (Organic) | +6.9% | N/A | N/A |
| EPS (GAAP) | $0.76 | N/A | N/A |
| EPS (Adjusted) | $1.09 | N/A | N/A |
| Gross Margin (Reported) | 52.8% | N/A | N/A |
| Gross Margin (Adjusted) | 57.1% | +140bps | N/A |
| Operating Margin (Reported) | 16.3% | N/A | N/A |
| Operating Margin (Adjusted) | 21.0% | +130bps | N/A |
The figures highlight Abbott’s continued strength, bolstered by its strategic diversification across various healthcare segments.
Revenue Breakdown
A detailed breakdown of Abbott's revenue performance in the first quarter is shown below:
| Segment | Reported Revenue Change | Organic Revenue Change | Remarks |
|---|---|---|---|
| Nutrition | +3.8% | +6.8% | Driven by Pediatric and Adult Nutrition |
| Diagnostics | -7.2% | -4.9% | Impacted by decline in COVID-19 testing |
| Established Pharmaceuticals | +2.7% | +7.8% | Growth in key emerging markets |
| Medical Devices | +9.9% | +12.6% | Led by Diabetes Care and Electrophysiology |
In-depth Analysis
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Nutrition Segment : The growth in the Nutrition segment is notable, particularly in Adult Nutrition, where the company saw an organic revenue increase of 8.7%. Products like Ensure® and Glucerna® have driven this growth, catering to needs ranging from balanced daily nutrition to diabetes-specific dietary solutions.
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Diagnostics Segment : Despite a decline due to reduced COVID-19 testing, there was positive growth in core categories like Core Laboratory Diagnostics, which saw organic growth of 0.9%. The focus is shifting as the pandemic's impact lessens.
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Established Pharmaceuticals : The 7.8% organic growth in established pharmaceuticals highlights Abbott’s foothold in emerging markets, with significant sales in Asia, Latin America, and the Middle East outpacing expectations.
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Medical Devices : This segment emerged as the standout performer, with an 18.3% rise in sales of continuous glucose monitors (CGMs). The FreeStyle Libre® brand continues to penetrate markets globally, supporting the segment’s overall growth.
Key Developments
Abbott Laboratories made substantial progress in the first quarter with notable achievements such as obtaining a CE Mark for its Volt™ PFA System. This advancement positions Abbott as a leader in treating atrial fibrillation in the European Union. Additionally, the initiation of TECTONIC, a U.S. pivotal trial for its Coronary Intravascular Lithotripsy (IVL) System, marks another strategic development. Abbott also presented promising two-year data from its TRILUMINATE™ pivotal trial, underpinning its leadership in heart health solutions.
Comments from Company Officers
Robert B. Ford, Abbott's chairman and CEO, emphasized the company's consistent performance, stating, "Once again, Abbott's diversified business model delivered top-tier sales and EPS growth. It is this diversification and execution that allows Abbott to navigate through periods of uncertainty and continually deliver sustainable growth."
Dividends and Share Repurchases
Abbott continues its shareholder-friendly approach with its 405th consecutive quarterly dividend. The board declared a quarterly dividend of $0.59 per share, payable on May 15, 2025. Notably, Abbott has a long legacy of increasing dividends annually for 53 consecutive years, earning its place in the S&P 500 Dividend Aristocrats Index.
Abbott Laboratories Stock Forecast
Given the strong results and strategic developments, Abbott's stock is well-positioned for future growth. The stock's recent price movement showed a decline of approximately 1.36%, reflecting short-term market conditions. However, with a robust market cap of approximately $182 billion, the company’s strong fundamentals suggest a positive long-term trajectory. Fundamental analysis, considering the 2025 EPS growth projections, yields a high stock price forecast of $145 and a low of $130 over the next 12 months. These estimates are contingent on maintaining current momentum and executing on strategic initiatives in its core market segments.
Abbott Laboratories’ Q1 2025 performance reaffirms its commitment to delivering sustained growth through innovation and strategic diversification. As the year progresses, the market will closely watch how Abbott continues to leverage its broad portfolio to adapt and thrive.
