Abbott (ABT) Faces Profit Headwinds as Pediatric Nutrition Remains Under Pressure

Core Viewpoint - Abbott Laboratories (NYSE:ABT) is facing profit headwinds primarily due to challenges in its pediatric nutrition segment and rising production costs, which have negatively impacted demand and overall sales performance [3][4]. Financial Performance - Abbott's total revenue for the quarter ended December 31 was $11.46 billion, falling short of the expected $11.80 billion [6]. - Adjusted earnings for the first quarter are projected to be between $1.12 and $1.18 per share, below the analyst consensus of $1.20 [6]. - Nutrition sales decreased by 8.9% year over year to $1.94 billion, while the diagnostics unit's sales fell by 2.5% to $2.46 billion [5]. Business Segments - All four business segments of Abbott missed sales estimates, indicating a broadly weaker performance across the company [5]. - The pediatric nutrition business has been under pressure after losing a significant U.S. government supply contract last year [3]. Management Insights - CEO Robert Ford indicated that the company will experience a couple of challenging quarters in nutrition growth but expects a return to positive growth in the second half of the year [4].