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Abbott Shares Drop 9% After Revenue Miss and Soft First-Quarter Outlook
Financial Modeling Prep· 2026-01-22 20:48
Core Viewpoint - Abbott Laboratories' shares fell over 9% intra-day following fourth-quarter earnings that met expectations but missed revenue targets, along with weaker guidance for the first quarter [1] Financial Performance - Adjusted earnings per share for the quarter were $1.50, aligning with analyst estimates [2] - Revenue totaled $11.46 billion, below the consensus forecast of $11.8 billion, with total sales increasing by 4.4% on a reported basis and 3.0% organically [2] - Organic growth, excluding COVID-19 testing-related sales, was 3.8% compared to the prior-year quarter [2] Segment Performance - The Medical Devices segment showed strong results, with revenue increasing by 12.3% to $5.68 billion [3] - Diabetes Care sales, including continuous glucose monitoring products, rose by 14.5% to $2.13 billion [3] - Nutrition revenue declined by 8.9% to $1.94 billion due to lower volumes and strategic pricing actions [3] - Diagnostics revenue fell by 2.5% to $2.46 billion, attributed to reduced demand for COVID-19 testing [3] Future Guidance - For the first quarter of 2026, Abbott projected adjusted earnings per share of $1.12 to $1.18, below the analyst consensus of $1.20 [2] - For the full year 2026, Abbott forecasted organic sales growth of 6.5% to 7.5% and adjusted earnings per share of $5.55 to $5.80, exceeding the analyst consensus of $5.17 and representing approximately 10% growth at the midpoint [4]