Abbott(US:ABT) CNBC Televisionยท2025-07-17 23:56Financial Performance & Guidance - Abbott Labs initially delivered high single-digit sales growth and 11% EPS growth, exceeding expectations, with gross margin expansion of 100 basis points [5] - Management tightened full-year earnings guidance and ticked down organic sales growth forecast and operating margin outlook, leading to investor disappointment [1] - The company maintains its 2026 guidance for high single-digit growth and double-digit EPS [8] - Diagnostics business recovery in China is delayed from Q2 to Q4, impacting revenue growth guidance [7] - COVID forecast was brought down, resulting in a 50-60 basis point drop in revenue growth [14] Business Segment Performance - Medical devices experienced strong organic growth of 122%, with double-digit growth in cardiovascular, diabetes, and neuromodulation businesses [16] - Electrophysiology and structural heart businesses showed acceleration and double-digit growth, respectively, while the heart failure business grew 14% [17] - Pharmaceutical business grew at a high single-digit rate of 8% in emerging markets [17] Strategic Actions & Outlook - Abbott has a $445 billion revenue business growing at 75% to 8% with double-digit EPS and margin expansion [7] - The company has a $7 billion buyback authorization and believes the stock's reaction is an overreaction [21] - Management is actively addressing the diagnostic business issues, including management changes and frequent meetings with the diagnostic team [11]