Abbott Stock Plunged After Earnings. The CEO Bought $2 Million of Shares. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Abbott Stock Fell the Most in 23 Years After Earnings. The CEO Bought $2 Million of Shares.By [Mackenzie Tatananni]Sha ...

Core Insights - Johnson & Johnson reported a revenue of $94.193 billion for 2025, reflecting a 6% year-over-year growth, but faced a strategic contraction in its orthopedic segment, which grew only 1.1% [1][3][19] - Abbott's revenue for 2025 was $44.328 billion, a 5.7% increase, but its diagnostic business saw a decline of 4.3%, highlighting a need for transformation [2][8][14] - The two companies are adopting different strategies in response to market pressures: Johnson & Johnson is divesting low-growth assets, while Abbott is pursuing acquisitions to drive growth [2][19] Johnson & Johnson Financial Overview - Total revenue for 2025: $94.193 billion, up 6% from $88.821 billion in 2024 [4] - Innovative Medicine segment generated $60.401 billion, accounting for over 65% of total sales, with a 6% growth [4][3] - Medical Technology segment revenue reached $33.792 billion, also up 6.1%, with cardiovascular business showing a strong performance at $8.93 billion, growing 15.8% [4][6][7] Abbott Financial Overview - Total revenue for 2025: $44.328 billion, a 5.7% increase from the previous year [8] - Medical Devices segment was the largest, generating $21.387 billion, with a growth of 12.6% [9][10] - The diagnostic business, however, faced a decline, with revenue of $8.937 billion, down 4.3% [13][14] Strategic Moves - Johnson & Johnson announced the spin-off of its orthopedic business, DePuy Synthes, to focus on higher-growth areas like cardiovascular and surgical robotics [7][19] - Abbott made a significant acquisition of Exact Sciences for $21 billion to bolster its cancer screening capabilities, addressing the decline in its diagnostic segment [14][2] Market Dynamics - Both companies are navigating challenges in the Chinese market, with Abbott facing a $400 million impact from centralized procurement [16][17] - Johnson & Johnson's orthopedic market share in China has significantly dropped, with its spinal business share falling from 16% to below 5% [18][19] - The competitive landscape is intensifying, with both companies adapting their strategies to maintain growth amid external pressures [20]

Core Insights - Abbott Laboratories (NYSE:ABT) is recognized as one of the 12 Most Profitable Dividend Stocks to consider for investment in 2026 [1] - Evercore ISI has reduced its price target for Abbott from $144 to $138 while maintaining an Outperform rating, indicating confidence in the company's long-term growth despite recent challenges [2] - Abbott's recent quarterly performance missed Wall Street's revenue expectations, leading to a 7% decline in share price, primarily due to underperformance in the nutrition and diagnostics segments [2][4] Financial Performance - The nutrition segment experienced an 8.9% decline in sales year-over-year, totaling $1.94 billion, while diagnostics revenue fell by 2.5% to $2.46 billion, raising concerns about the company's near-term momentum [4] - Rising production costs have compelled Abbott to increase prices, which has negatively impacted consumer demand as price sensitivity grows [4] Business Overview - Abbott Laboratories operates as a global healthcare company with a diverse portfolio that includes diagnostics, medical devices, nutrition, and branded generic medicines [5]

Abbott Laboratories (ABT) shares snapped six straight sessions of losses, as the stock closed 1.2% higher at $108.77 on Monday. The MedTech giant started its downward trend on Jan. 15. The stock has lost over 13% in the preceding six sessions. ...

Core Insights - Abbott Laboratories is a global healthcare company with a diverse product range, facing recent stock challenges but remaining a strong industry player [1] Stock Performance - The current stock price of Abbott Laboratories (ABT) is $107.42, reflecting a decrease of approximately -1.10% [4] - Over the past year, ABT has reached a high of $141.23 and a low of $105.78, with a market capitalization of approximately $186.96 billion [4] - The trading volume for ABT on the NYSE is 21,703,521 shares [4] Executive Actions - Ford Robert B, Chairman and CEO, purchased 18,800 shares at approximately $107.13 each, increasing his total ownership to 216,203 shares, signaling confidence in the company's future [2][6] Company Ratings and Forecasts - Abbott Laboratories is rated as a 'Buy' despite recent stock price declines, primarily due to weaknesses in its Nutrition segment and a decrease in COVID-19 diagnostics [3][6] - The Medical Devices segment, particularly Continuous Glucose Monitoring (CGM) products, continues to show strong double-digit growth, counterbalancing challenges in the Nutrition sector [3] - The company forecasts a 7% increase in sales and a 10% growth in earnings per share (EPS) for 2025, supported by ongoing innovation and a return to normalcy in the Nutrition segment [5][6]

Core Viewpoint - Abbott Laboratories experienced a significant drop in share price following its Q4 2025 earnings report, which revealed lower-than-expected revenue, leading to concerns among investors about the company's performance and future growth prospects [1]. Group 1: Financial Performance - Abbott reported Q4 revenue of $11.5 billion, missing Wall Street's expectation of $11.8 billion, primarily due to challenges in its nutrition segment [3]. - Despite the revenue miss, Abbott's adjusted diluted earnings per share (EPS) increased by 12% year over year, aligning with analysts' estimates [3]. - The company anticipates overall revenue growth to accelerate in 2026, projecting organic sales growth of 6.5% to 7.5% and adjusted diluted EPS of $5.55 to $5.80, indicating a 10% year-over-year growth at the midpoint [4]. Group 2: Market Position and Future Outlook - Abbott is recognized as a Dividend King, having increased its dividend for 54 consecutive years, making it an attractive option for income investors [2]. - The company is expected to implement changes in its nutrition business to drive a return to growth in the second half of 2026 [3]. - Abbott's diversified business model and comprehensive product portfolio position it favorably within the medtech and diagnostics markets, as stated by CEO Robert Ford [6].

Group 1 - Citigroup has lowered Abbott's target price from $155 to $140 while maintaining a "Buy" rating [1]

Core Viewpoint - Abbott's financial performance for 2025 shows overall revenue and earnings growth, with significant contributions from the medical devices segment, while nutrition and diagnostics face challenges [1][3][22]. Overall Financial Performance - In Q4 2025, Abbott reported total sales of approximately $11.46 billion, with a net profit of $1.78 billion, leading to a diluted EPS of $1.01 and an adjusted EPS of $1.50, slightly above market expectations [4][5]. - For the full year 2025, total sales reached about $44.33 billion, with a diluted EPS of $3.72 and an adjusted EPS of $5.15, achieving double-digit growth [4][21]. Business Segment Breakdown Medical Devices - The medical devices segment continues to be the standout performer, with Q4 sales of $5.68 billion, reflecting a 12.3% year-over-year growth [8][9]. - Growth in this segment is driven by products related to cardiac rhythm management, electrophysiology, and chronic disease management solutions [7][8]. Nutrition - The nutrition segment is currently under pressure, with Q4 sales of $1.94 billion, down 8.9% year-over-year [10][12]. - The decline is attributed to ongoing adjustments in pricing strategies and product mix, which are expected to persist [10][22]. Diagnostics - The diagnostics segment reported Q4 sales of $2.46 billion, a decrease of 2.5% compared to the previous year, primarily due to declining demand for COVID-19 testing [13][15]. - The segment's performance reflects a broader trend of reduced testing needs impacting overall revenue [13][22]. Established Pharmaceuticals - The established pharmaceuticals segment generated Q4 sales of $1.38 billion, maintaining stable growth, particularly in international markets, with a 9.0% increase year-over-year [16][18]. Key Operational Developments - Abbott has received regulatory approval for its first pulse field ablation system for atrial fibrillation patients and has made progress with several cardiovascular and electrophysiology products in Europe [20]. - The company plans to acquire Exact Sciences for approximately $21 billion to expand its oncology screening and diagnostic capabilities [20][21]. 2026 Financial Outlook - For 2026, Abbott's management anticipates accelerated growth driven by new product launches and ongoing business structure optimization [21][22].

Performance Summary - AeroVironment, Inc. (NASDAQ:AVAV) decreased by 19.45% due to a stop work order from the US government on the SCAR program [1] - DraftKings Inc. (NASDAQ:DKNG) fell by 14.4% after a judge allowed Massachusetts to block Kalshi from offering sports-related contracts [2] - Constellation Energy Corporation (NASDAQ:CEG) decreased by 10.38% with Wells Fargo analyst lowering the price forecast from $478 to $460 while maintaining an Overweight rating [3] - Applovin Corporation (NASDAQ:APP) fell by 14.68% following concerns raised in a CapitalWatch report [3] - Abbott Laboratories (NYSE:ABT) slumped by 12.23% after reporting worse-than-expected fourth-quarter sales and issuing first-quarter adjusted EPS guidance below estimates [4] - Flutter Entertainment plc (NYSE:FLUT) fell by 13.07% with multiple analysts lowering their price forecast [4] - Shopify Inc. (NASDAQ:SHOP) decreased by 13.51% [4] - Talen Energy Corporation (NASDAQ:TLN) slumped by 6.05% while Wells Fargo analyst raised the price forecast from $445 to $506, maintaining an Overweight rating [5]

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