Core Insights - Abbott reported strong financial results for the second quarter of 2025, with total worldwide sales reaching $11.142 billion, a 7.4% increase compared to the same period in 2024 [28][29] - The company achieved high single-digit organic sales growth and double-digit growth in earnings per share (EPS), indicating robust operational performance [2][5] - Abbott anticipates continued momentum into 2026, projecting full-year 2025 organic sales growth of 7.5% to 8.0% excluding COVID-19 testing-related sales [22] Second Quarter Business Overview - Total reported sales for the second quarter were $11.142 billion, with U.S. sales at $4.276 billion and international sales at $6.866 billion [4] - Organic sales growth was reported at 6.9%, or 7.5% when excluding COVID-19 testing-related sales [5][6] - The company’s gross margin improved to 52.7% of sales, with an adjusted gross margin of 57.0%, reflecting a 100 basis point increase [5] Segment Performance Nutrition - Worldwide Nutrition sales increased by 2.9% on a reported basis and 3.4% on an organic basis in the second quarter [8] - Adult Nutrition drove growth, with global sales rising 6.1% on a reported basis, supported by brands like Ensure® and Glucerna® [8] Diagnostics - Total Diagnostics sales decreased by 1.0% on a reported basis and 1.4% on an organic basis, impacted by a decline in COVID-19 testing-related sales [10][11] - COVID-19 testing sales were $55 million in the quarter, down from $102 million in the previous year [11] Established Pharmaceuticals - Established Pharmaceuticals sales increased by 6.9% on a reported basis and 7.7% on an organic basis in the second quarter [14][15] Medical Devices - Worldwide Medical Devices sales grew by 13.4% on a reported basis and 12.2% on an organic basis, with significant contributions from Diabetes Care and Heart Failure segments [18][19] Financial Guidance - Abbott projects full-year 2025 adjusted diluted EPS to be between $5.10 and $5.20, reflecting double-digit growth at the midpoint [22] - The company also expects an adjusted operating margin of approximately 23.5% of sales for the full year [22] Dividend Declaration - Abbott declared its quarterly dividend of $0.59 per share, marking the 406th consecutive quarterly dividend [24]

Core Insights - Abbott Laboratories is set to release its second-quarter earnings results on July 17, with expected earnings of $1.25 per share, an increase from $1.14 per share in the same period last year [1] - The company anticipates quarterly revenue of $11.02 billion, up from $10.38 billion a year earlier [1] - Abbott received FDA approval for its Tendyne™ transcatheter mitral valve replacement system, which positively impacted its stock price [2] Analyst Ratings - Morgan Stanley analyst David Lewis maintained an Equal-Weight rating and raised the price target from $127 to $137 [5] - Raymond James analyst Jayson Bedford maintained an Outperform rating and increased the price target from $132 to $142 [5] - Barclays analyst Matt Miksic maintained an Overweight rating and slightly raised the price target from $158 to $159 [5] - Stifel analyst Rick Wise maintained a Buy rating and increased the price target from $135 to $145 [5] - Jefferies analyst Matthew Taylor maintained a Hold rating and raised the price target from $135 to $137 [5]

Core Viewpoint - Strong Q2 results from banks and financial firms highlight the importance of monitoring upcoming earnings reports from medical companies, which can serve as a hedge against market volatility [1][2]. Group 1: Johnson & Johnson (JNJ) - Johnson & Johnson is a leader in the Zacks Large Cap Pharmaceuticals Industry, which ranks in the top 29% of over 240 Zacks industries [3]. - The company is expected to report Q2 results on July 16, with EPS projected to dip 5% to $2.66, but shares trade at a reasonable forward earnings multiple of 14.7X [4]. - JNJ has a 3.32% annual dividend yield, above the industry average of 2.57% and the S&P 500's 1.18% [4]. - The bottom line is projected to expand 6% this year, with FY26 EPS forecasted to rise 4% to $11.09 per share [5]. - The Most Accurate estimate for Q2 EPS is $2.72, which is 2% above the Zacks Consensus [5][6]. Group 2: Novartis (NVS) - Novartis is also part of the top-rated Zacks Large Cap Pharmaceuticals Industry and will report Q2 results on July 17 [6]. - Q2 sales are expected to rise 9% year-over-year to $14.04 billion, with EPS projected to increase 21% to $2.38 [8]. - FY25 EPS estimates have slightly increased, with FY26 EPS estimates rising from $9.14 to $9.35 per share [8]. - NVS trades at an attractive forward earnings multiple of 13.5X and offers a 2.14% annual dividend yield [8]. Group 3: Abbott Laboratories (ABT) - Abbott Laboratories will report Q2 results on July 17, with a diversified line of healthcare products [10]. - Q2 earnings are expected to rise 9% to $1.25 per share, with the Most Accurate estimate at $1.27, slightly above the Zacks Consensus [10][12]. - Sales for Q2 are projected to increase nearly 7% to $11.07 billion, with mid to high single-digit growth expected for the annual outlook [10]. - ABT has a forward earnings multiple of 25.6X, near the industry average, and a 1.79% annual dividend yield [11]. Conclusion - The outlook for Johnson & Johnson, Novartis, and Abbott Laboratories suggests these stocks are worthy of consideration, especially in the context of potential market volatility [13].

Core Insights - Abbott Laboratories (NYSE: ABT) is set to announce its second-quarter earnings on July 17, 2025, with historical stock reactions to earnings announcements indicating potential trading strategies [2][3]. Earnings Expectations - Analysts project Abbott's second-quarter earnings to be $1.25 per share on revenues of $11.02 billion, a significant increase from the previous year's earnings of $1.14 per share on sales of $10.38 billion [3]. Historical Stock Performance - Over the past five years, Abbott's stock has experienced negative one-day returns following earnings releases in 60% of cases, with a median negative return of -2.4% and a peak negative return of -6.5% [3][6]. - In the last three years, the percentage of positive one-day returns increased to 50%, with a median positive return of 3.0% for the eight positive returns recorded [6]. Market Position and Financials - Abbott Laboratories has a market capitalization of approximately $230 billion and generated $42 billion in revenue over the last year, with an operating income of $7.1 billion and a net income of $14 billion [4]. Trading Strategies - Traders may consider pre-earnings positioning based on historical probabilities or wait for earnings results to inform their trading decisions [5]. - A strategy involving the correlation between short-term (1D) and medium-term (5D) returns post-earnings can be employed, particularly if a strong correlation is identified [7].

Core Viewpoint - Abbott (ABT) is expected to report quarterly earnings of $1.25 per share, reflecting a 9.7% increase year-over-year, with revenues projected at $11.07 billion, a 6.7% increase compared to the previous year [1]. Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2]. Key Metrics Forecast - Analysts predict 'Net sales- Nutrition' to reach $2.24 billion, indicating a 4.3% increase from the prior year [4]. - The consensus for 'Net sales- Medical Devices- Diabetes Care' is $1.94 billion, reflecting a 17.5% year-over-year change [4]. - 'Net sales- Diagnostics' is expected to reach $2.22 billion, showing a 1% increase from the previous year [4]. - 'Net sales- Established Pharmaceuticals' is forecasted at $1.37 billion, a 6.1% increase year-over-year [5]. - 'Net sales- Diagnostics- U.S.' is estimated at $832.19 million, indicating a 2.5% increase [5]. - 'Net sales- Diagnostics- International' is projected to be $1.38 billion, reflecting a 0.1% increase [5]. - 'Net sales- Nutrition- International' is expected to reach $1.26 billion, a 3.5% year-over-year change [6]. - 'Net sales- Nutrition- U.S.' is forecasted at $985.20 million, indicating a 5.6% increase [6]. - 'Net sales- Medical Devices- Neuromodulation- International' is estimated at $53.47 million, reflecting a 4.8% increase [7]. - 'Net sales- Medical Devices- Rhythm Management- U.S.' is projected at $312.05 million, indicating a 6.9% increase [7]. - 'Net sales- Medical Devices- Rhythm Management- International' is expected to reach $334.64 million, reflecting a 6.2% year-over-year change [8]. - 'Net sales- Medical Devices- Structural Heart- U.S.' is forecasted at $304.28 million, indicating a 17.9% increase [8]. Stock Performance - Abbott shares have decreased by 2.7% over the past month, contrasting with the Zacks S&P 500 composite's 4% increase, but the company holds a Zacks Rank 2 (Buy), suggesting expected outperformance in the near term [8].

Core Insights - Abbott Laboratories (ABT) is expected to report second-quarter 2025 results on July 17, with adjusted earnings per share (EPS) of $1.09 in the last quarter, surpassing the Zacks Consensus Estimate by 1.9% [1] - The Zacks Consensus Estimate for revenues is $11.07 billion, indicating a 6.7% increase year-over-year, while EPS is estimated to rise 9.6% to $1.25 [1][2] Revenue Estimates by Segment - **Diagnostics**: Expected revenue growth impacted by a decline in COVID-19 testing revenues, but anticipated to benefit from high demand across various settings. Estimated revenue increase of 0.1% year-over-year [3][4][6] - **Established Pharmaceuticals (EPD)**: Projected to continue strong performance across multiple regions and therapeutic areas, with a year-over-year revenue increase of 6.1% [7][8] - **Medical Devices**: Anticipated to show significant growth, driven by the Diabetes Care division and continuous glucose monitor (CGM) systems, with a projected revenue increase of 10.9% year-over-year [8][9][13] - **Nutrition**: Expected robust sales from adult nutrition brand Ensure and solid growth in infant formula and toddler brands, with a year-over-year revenue improvement of 4.3% [13] Earnings Estimate Revision - Estimates for Q2 earnings have remained unchanged at $1.25 per share over the past 30 days, indicating stability in expectations [3] Market Position and Growth Drivers - The Medical Devices segment is highlighted as a standout performer, with growth driven by new product approvals and strong demand in various categories, including heart assist devices and structural heart products [10][11][12]

Investment Rating - The report maintains a "Buy" rating for Boston Scientific (BSX), Edwards Lifesciences (EW), GE Healthcare (GEHC), Intuitive Surgical (ISRG), and Haemonetics (HAE), while downgrading Tandem Diabetes (TNDM) to "Sell/High Risk" from "Neutral/High Risk" [1][5][20]. Core Insights - The MedTech sector has shown resilience against healthcare headwinds, with a focus on returning to fundamentals and several catalysts expected to drive momentum in the second half of 2025 [1][9]. - The S&P Equipment and Supplies Index has outperformed the broader market, with a year-to-date increase of 7.2%, while relative P/E multiples remain below historical averages [2][12]. - Key upcoming catalysts include product launches and data readouts from various companies, which are anticipated to influence stock performance positively [3][10][11]. Summary by Sections Market Overview - The MedTech industry has largely absorbed tariff impacts, with a weakening USD providing additional support [1][9]. - The S&P 500 is up 6.2% year-to-date, while the S&P Equipment and Supplies Index has increased by 7.2% [2][12]. Company-Specific Insights - Boston Scientific (BSX) is expected to benefit from Farapulse and new product launches, projecting a revenue increase of 80.1% year-over-year in 2Q25 [3][10]. - Edwards Lifesciences (EW) anticipates pivotal data releases and the reopening of TAVR NCD, which could enhance its market position [3][10]. - Intuitive Surgical (ISRG) plans a broad launch of its DV5 system, which is expected to drive stock performance [4][10]. - Haemonetics (HAE) has been upgraded to "Buy" due to improved guidance and revenue growth expectations [5][20]. - Tandem Diabetes (TNDM) faces competitive pressures, leading to its downgrade to "Sell/High Risk" [5][20]. Valuation and Target Prices - Target prices have been adjusted for several companies, with BSX at $125, EW at $95, GEHC at $86, and ISRG at $650 [20][21]. - The report highlights that the relative P/E multiple for the MedTech sector is currently at 1.14x, below historical averages, indicating potential undervaluation [2][12][14].

Core Viewpoint - The article discusses the recent developments in trade negotiations, the impact of tariffs on inflation, and the upcoming economic data releases that could influence monetary policy decisions in the US and Europe [1][3][6]. Trade Negotiations and Tariffs - President Trump announced a new round of reciprocal tariffs on several trade partners, leading to a decline in US stock markets, with the Dow Jones down 1.02% and the S&P 500 down 0.31% for the week [1]. - The deadline for the new tariffs to take effect is August 1, and investors are awaiting further news on trade negotiations [1][3]. - The EU is attempting to reach a trade agreement with the US, with concerns that US tariffs could disrupt transatlantic supply chains [6]. Economic Data and Monetary Policy - The upcoming US inflation data, particularly the Consumer Price Index (CPI) for June, is expected to influence the Federal Reserve's decision on potential interest rate cuts later this year [3]. - The Federal Reserve's June meeting minutes indicated concerns about inflation pressures from tariffs, but a belief that a rate cut may occur later in the year [3]. - In the UK, inflation has risen, with the CPI at 3.4% in May, and expectations for a potential rate cut by the Bank of England if economic data continues to underperform [7]. Commodity Markets - Oil prices have stabilized, with WTI crude oil rising 2.16% to $68.45 per barrel and Brent crude oil increasing 3.02% to $70.36 per barrel, amid concerns over summer supply and demand [4]. - Gold prices have also rebounded, with COMEX gold rising 0.73% to $3356 per ounce, as investors seek safe-haven assets amid trade uncertainties [5]. Upcoming Economic Indicators - Key economic indicators to watch include the US PPI, industrial production, and retail sales data, as well as consumer sentiment surveys [3][9]. - In Europe, the ZEW economic sentiment index for Germany will be released, reflecting the economic outlook amid trade tensions [6].

Company Performance - Abbott's stock closed at $132.02, reflecting a -1.18% change from the previous day, underperforming the S&P 500's daily loss of 0.33% [1] - Prior to the latest trading session, Abbott's shares had decreased by 2.09%, lagging behind the Medical sector's loss of 0.32% and the S&P 500's gain of 4.07% [1] Earnings Expectations - Abbott is set to release its earnings on July 17, 2025, with an expected EPS of $1.25, indicating a 9.65% growth year-over-year [2] - The consensus estimate for Abbott's revenue is $11.07 billion, representing a 6.7% increase compared to the same quarter last year [2] Full Year Projections - Analysts expect Abbott to achieve earnings of $5.16 per share and revenue of $44.7 billion for the full year, marking changes of +10.49% and +6.56% respectively from the previous year [3] - Recent revisions to analyst estimates suggest positive near-term business trends, indicating a favorable outlook for Abbott [3] Valuation Metrics - Abbott currently has a Forward P/E ratio of 25.91, which is a premium compared to the industry average Forward P/E of 20.14 [5] - The company holds a PEG ratio of 2.54, higher than the industry average PEG ratio of 2.29 [6] Industry Context - Abbott operates within the Medical - Products industry, which has a Zacks Industry Rank of 156, placing it in the bottom 37% of over 250 industries [6] - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Abbott, driven by higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Abbott is expected to report quarterly earnings of $1.25 per share, reflecting a +9.7% change year-over-year, with revenues projected at $11.07 billion, up 6.7% from the previous year [3]. - The earnings report is scheduled for July 17, and better-than-expected results could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.44% lower in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.96% suggests analysts have recently become more optimistic about Abbott's earnings prospects, combined with a Zacks Rank of 2 indicating a likely earnings beat [12]. Earnings Surprise History - Abbott has a history of beating consensus EPS estimates, having exceeded expectations in three out of the last four quarters [14]. - In the last reported quarter, Abbott's earnings of $1.09 per share surpassed the expected $1.07, resulting in a surprise of +1.87% [13]. Conclusion - Abbott is positioned as a strong candidate for an earnings beat, but investors should consider additional factors beyond earnings results when making investment decisions [15][17].