Key Takeaways Abbott's Q3 adjusted earnings met estimates despite a revenue miss on strong year-over-year growth.Tariffs and weaker Diagnostics sales in China narrowed margins and curbed investor enthusiasm.Diversified growth in Medical Devices and Nutrition supports Abbott's resilience amid trade headwinds.Shares of Abbott (ABT) have edged up 0.7% since the company’s third-quarter 2025 earnings release on Oct. 15, 2025. The company reported a strong year-over-year increase in adjusted earnings and revenues ...

Core Insights - Abbott Laboratories' shares fell 3% following a less-than-stellar Q3 performance, with revenue rising 6.9% to $11.37 billion, missing the $11.4 billion consensus estimate [1] - Organic sales, excluding Covid testing, increased by 7.5%, surpassing the 5.9% estimate [1] - Adjusted earnings per share (EPS) rose 7.4% to $1.30, aligning with expectations [1] Financial Performance - Q3 sales in three of Abbott's four main operating segments fell short of expectations, marking the second consecutive disappointing quarter [1] - Medical Devices sales grew 12.5% organically, driven by strong performance in diabetes care and other segments [1] - Established Pharmaceuticals saw a 7.1% organic increase, while emerging markets exceeded $1 billion in sales, growing 11.1% organically [1] - Diagnostics sales declined 7.8% organically, primarily due to a nearly 28% drop in rapid diagnostics [1] Market Position and Strategy - Abbott's management tightened their full-year EPS outlook to a range of $5.12 to $5.18, consistent with consensus estimates [1] - The company continues to expect full-year organic sales growth of 7.5% to 8%, excluding Covid testing [1] - Concerns were raised regarding Abbott's exposure to China's sluggish healthcare sector, prompting discussions about portfolio adjustments [1] Segment Analysis - Nutrition sales grew 4% year over year, with adult segment sales increasing 5.4% organically, led by products like Ensure and Glucerna [2] - The point of care diagnostics segment saw nearly 8% organic growth, highlighting the adoption of new tests [1] - Abbott's ongoing litigation regarding its specialized formula for premature infants remains a concern, although management stands by the product [1]

Core Insights - Abbott Laboratories (ABT) reported third-quarter 2025 adjusted earnings per share (EPS) of $1.30, matching the Zacks Consensus Estimate and reflecting a 7.4% increase from the prior year [1][8] - Total revenues for the quarter were $11.37 billion, up 6.9% year over year, but slightly missing the Zacks Consensus Estimate by 0.24% [2][8] Revenue Breakdown - Established Pharmaceuticals segment sales increased by 7.5% to $1.51 billion, with organic sales in emerging markets growing by 11.1% [3] - Medical Devices segment sales rose 14.8% to $5.45 billion, driven by strong growth in Diabetes Care and other areas [4] - Nutrition sales grew by 4.2% to $2.15 billion, with Adult Nutrition benefiting from strong global brand performance [5][6] - Diagnostics sales declined by 6.6% to $2.25 billion, with organic sales ex-COVID rising by 0.4% [6] Margin and Expense Analysis - Gross profit increased by 6% to $6.29 billion, but gross margin contracted by 46 basis points to 55.4% [9] - Selling, general and administrative expenses rose by 5.4% to $3.05 billion, while research and development expenses increased by 7.4% to $766 million [10] Financial Guidance - For the full year, Abbott expects adjusted diluted EPS in the range of $5.12 to $5.18, reaffirming previous guidance [11] - Full-year organic sales growth, excluding COVID-19 testing-related sales, is projected to be between 7.5% and 8.0% [12] Market Position and Developments - Abbott's third-quarter performance was mixed, with earnings exceeding estimates while revenues fell short [13] - Notable developments include regulatory approval in Japan for TriClip and CE Mark for the Navitor TAVI system [14]

Financial Data and Key Metrics Changes - The company reported organic sales growth of 7.5% excluding COVID test sales, with earnings per share rising to $1.30, reflecting high single-digit growth compared to last year [6][7][16] - Adjusted earnings per share of $1.30 was in line with consensus estimates, and foreign exchange had a favorable year-over-year impact of 1.4% on third quarter sales [16][17] - Adjusted gross margin was 55.8% of sales, reflecting a decrease due to tariffs, while adjusted operating margin increased by 40 basis points to 23% of sales [16][17] Business Line Data and Key Metrics Changes - Nutrition sales increased by 4%, driven by a 10% growth in international markets, particularly in adult nutrition products like Ensure and Glucerna [8][9] - Diagnostics saw modest sales growth excluding COVID testing, with core lab diagnostics growing 7% outside of China, while point-of-care diagnostics grew by 8% [9][10] - Established Pharmaceuticals (EPD) sales increased by 7%, led by double-digit growth in key markets, with strong contributions from therapeutic areas like gastroenterology and cardiometabolic [10][11] - Medical devices experienced a 12.5% sales growth, driven by double-digit growth in diabetes care and cardiac rhythm management [11][12] Market Data and Key Metrics Changes - The U.S. diagnostics market grew by 10%, while Europe saw growth of 6% to 7%, and Latin America grew in the mid-teens [46][47] - In China, the company faced headwinds from VBP pricing dynamics, but growth in other segments like EPD and nutrition remained strong, with overall growth in China around 5% to 7% when excluding diagnostics [65][66] Company Strategy and Development Direction - The company aims to sustain high single-digit organic sales growth and double-digit EPS growth, supported by new product launches and easing headwinds from diagnostics [20][25] - Investments in innovation and a robust pipeline are expected to drive future growth, with nearly 200 clinical trials planned for next year [24][25] - The company is focused on expanding its market share in key segments, including diabetes care and cardiac rhythm management, with new product launches like Volt and dual analyte sensors [22][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting consensus estimates for 2026, citing underlying momentum in the current portfolio and new product launches as key growth drivers [20][21] - The company anticipates a recovery in the diagnostics business as headwinds from China moderate and new products are rolled out [48] - Management highlighted the importance of addressing barriers to CGM penetration in the basal segment and emphasized ongoing efforts to increase awareness among primary care physicians [78][80] Other Important Information - Recent product launches contributed nearly half a billion dollars in sales this quarter, adding over 100 basis points to organic sales growth [8] - The company is advancing its biosimilars strategy, with several regulatory approvals expected in the near future [10] Q&A Session Summary Question: Thoughts on 2026 sales and EPS consensus - Management is comfortable with the consensus estimates for 2026, expecting continued growth driven by product momentum and easing headwinds [20] Question: U.S. diabetes growth dynamics - U.S. diabetes care grew 19%, with expectations for strong growth next year driven by new product launches [29][32] Question: Diagnostics business headwinds - Management acknowledged challenges in the diagnostics segment due to VBP in China but expects a recovery as these headwinds moderate [44][48] Question: Cardiac rhythm management growth - The cardiac rhythm management segment is experiencing significant growth, with expectations for continued market share gains [67][69] Question: Structural heart market outlook - Management is optimistic about the structural heart market, particularly with upcoming product launches and competitive advancements [75][76]

Financial Data and Key Metrics Changes - The company reported organic sales growth of 7.5% excluding COVID test sales, with earnings per share rising to $1.30, reflecting high single-digit growth compared to last year [6][7][16] - Adjusted gross margin was 55.8% of sales, showing a decrease from the prior year due to tariffs, while adjusted operating margin increased by 40 basis points to 23% of sales [16][52] Business Line Data and Key Metrics Changes - Nutrition sales increased by 4%, driven by a 10% growth in international markets, particularly in the adult nutrition segment [8][9] - Diagnostics experienced modest sales growth excluding COVID testing, with core lab diagnostics growing 7% outside of China [9][10] - Established Pharmaceuticals (EPD) sales increased by 7%, led by double-digit growth in key markets [10] - Medical devices saw a 12.5% sales growth, with significant contributions from diabetes care and electrophysiology [11][12] Market Data and Key Metrics Changes - The U.S. diagnostics market grew by 10%, while Europe saw growth of 6% to 7%, and Latin America experienced mid-teens growth [46] - In China, the company faced challenges due to VBP pricing dynamics, but growth in other segments remained stable, with a projected growth rate of 5% to 7% excluding diagnostics [65][66] Company Strategy and Development Direction - The company aims to sustain high single-digit organic sales growth and double-digit EPS growth, supported by new product launches and a strong existing portfolio [20][25] - Investments in innovation and clinical trials are expected to drive future growth, with nearly 200 clinical trials planned for next year [24][25] - The company is focused on expanding its market share in key segments, including diabetes care and cardiac rhythm management [68][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting consensus estimates for 2026, citing underlying momentum in the current portfolio and easing headwinds from diagnostics [20][21] - The company anticipates a recovery in the diagnostics business, particularly outside of China, and expects to see improved performance in 2026 [48][66] Other Important Information - Recent product launches contributed nearly half a billion dollars in sales this quarter, enhancing organic sales growth [8] - The company is advancing its biosimilars strategy, with several regulatory approvals expected in the near future [10] Q&A Session Summary Question: Thoughts on next year's sales and EPS consensus - Management is comfortable with the consensus estimates for 2026, expecting continued growth driven by product momentum and easing headwinds [20][21] Question: Insights on diabetes growth in the U.S. and internationally - U.S. diabetes care grew 19%, with expectations for strong growth next year driven by new product launches [29][31] Question: Updates on the diagnostics business and recovery expectations - Management noted that while challenges remain in China, the diagnostics business outside of China is expected to accelerate, with a recovery anticipated next year [46][48] Question: Performance of the electrophysiology franchise - The electrophysiology segment is experiencing double-digit growth, with positive feedback on new products like the Volt catheter [35][36] Question: Outlook for the cardiac rhythm management market - The dual chamber leadless pacemaker market is expected to grow significantly, with current penetration rates indicating substantial room for growth [68][69] Question: Update on structural heart and left atrial appendage closure - Management is optimistic about future growth in left atrial appendage closure, with new product trials expected to yield positive results [74][75]

Abbott Laboratories (NYSE:ABT) Q3 2025 Earnings Call October 15, 2025 09:00 AM ET Speaker0Good morning, and thank you for standing by. Welcome to Abbott's Third Quarter twenty twenty five Earnings Conference Call. All participants will be able to listen only until the question and answer portion of this call. During the question and answer session, you will be able to ask your question by pressing the star one one keys on your touch tone phone. This call is being recorded by Abbott.With the exception of any ...

Financial Data and Key Metrics Changes - The company reported organic sales growth of 7.5% excluding COVID test sales, with earnings per share rising to $1.30, reflecting high single-digit growth compared to last year [5][13] - Adjusted gross margin was 55.8% of sales, showing a decrease from the prior year due to tariffs, while adjusted operating margin increased by 40 basis points to 23% [14][48] Business Line Data and Key Metrics Changes - Nutrition sales increased by 4%, driven by a 10% growth in international markets, particularly in adult nutrition products like Ensure and Glucerna [6][7] - Diagnostics experienced modest sales growth excluding COVID testing, with core lab diagnostics growing 7% outside of China, while point-of-care diagnostics grew by 8% [7][8] - Established Pharmaceuticals (EPD) sales increased by 7%, led by double-digit growth in key markets, with strong contributions from therapeutic areas like gastroenterology and cardiometabolic [8][9] - Medical devices saw a 12.5% sales growth, with significant contributions from diabetes care and electrophysiology [9][10] Market Data and Key Metrics Changes - The U.S. diagnostics market grew by 10%, while the European region saw growth of 6% to 7%, and Latin America grew in the mid-teens [44] - In China, the company faced challenges due to VBP pricing dynamics, but growth in other segments like EPD and nutrition remained strong, with an overall growth rate of around 5% to 7% when excluding diagnostics [61][62] Company Strategy and Development Direction - The company aims to sustain high single-digit organic sales growth and double-digit EPS growth, supported by new product launches and a strong existing portfolio [21][22] - Investments in innovation and clinical trials are expected to drive future growth, with nearly 200 clinical trials planned across various businesses [21][23] - The company is focused on expanding its market share in key areas such as diabetes care and electrophysiology, with new product launches like Volt expected to enhance growth [19][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting consensus estimates for 2026, citing underlying momentum in the current portfolio and easing headwinds from diagnostics [18][19] - The company anticipates a recovery in the diagnostics business as it laps previous headwinds, with expectations for mid-to-high single-digit growth next year [45] - Management highlighted the importance of adapting to market conditions and maintaining a resilient portfolio to drive growth [19][23] Other Important Information - The company has launched new products that generated nearly half a billion dollars in sales this quarter, contributing significantly to organic sales growth [6] - Regulatory approvals for new medical devices, such as Triclip in Japan and expanded indications for TAVR, are expected to enhance market position [10][11] Q&A Session Summary Question: Thoughts on 2026 sales and EPS consensus - Management is comfortable with the consensus estimates for 2026, expecting to deliver similar growth rates as in 2025 despite headwinds faced this year [18] Question: Insights on U.S. diabetes market growth - U.S. diabetes care grew by 19%, with expectations for continued strong growth driven by new product launches and increased penetration in the basal segment [26][28] Question: Drivers of ablation catheter growth - Double-digit growth in ablation catheters is driven significantly by international markets, with a strong competitive position in mapping cases [52][53] Question: Outlook for diagnostics business in China - Management expects mid-single-digit growth in China, focusing on expanding contributions from other geographies while navigating current challenges [62] Question: Update on nutrition litigation and market performance - The company remains committed to defending its products amid ongoing litigation, with pockets of softness in nutrition being addressed through strategic investments [80]

Core Insights - Abbott's third-quarter results for 2025 show a total worldwide sales increase of 6.9% to $11.369 billion compared to $10.635 billion in the same quarter of 2024 [23] - The company reported a GAAP diluted EPS of $0.94 and an adjusted diluted EPS of $1.30, reflecting a 7.4% increase from the previous year [7][24] - Abbott reaffirms its full-year 2025 organic sales growth guidance of 7.5% to 8.0%, excluding COVID-19 testing-related sales [17] Financial Performance - Total reported sales for the third quarter were $11.369 billion, with U.S. sales at $4.299 billion and international sales at $7.070 billion [4] - The organic sales growth was 5.5%, or 7.5% when excluding COVID-19 testing-related sales [7] - Year-to-date sales for the first nine months of 2025 reached $32.869 billion, a 6.1% increase from $30.976 billion in the same period of 2024 [24] Segment Performance - Nutrition segment sales for Q3 2025 were $2.153 billion, with U.S. sales declining by 6.5% and international sales increasing by 13.3% [6][9] - Diagnostics segment reported sales decreased by 6.6% to $2.253 billion, with a notable decline in COVID-19 testing sales from $265 million in Q3 2024 to $69 million in Q3 2025 [10][11] - Medical Devices segment sales increased by 14.8% to $5.448 billion, driven by strong growth in Diabetes Care and other areas [15][16] Guidance and Future Outlook - Abbott has narrowed its full-year 2025 adjusted diluted EPS guidance range to $5.12 to $5.18, indicating double-digit growth at the midpoint [7][17] - The company received regulatory approvals for new products, including TriClip and an expanded indication for the Navitor TAVI system, which are expected to contribute to future growth [7] Dividend Information - Abbott declared a quarterly dividend of $0.59 per share, marking the 407th consecutive quarterly dividend, with a history of increasing dividends for 53 consecutive years [19]

Core Insights - Abbott Laboratories (ABT) is set to report its third-quarter 2025 results on October 15, with adjusted earnings per share (EPS) of $1.26 in the last quarter, exceeding the Zacks Consensus Estimate by 0.8% [1][8] Revenue and EPS Estimates - The Zacks Consensus Estimate for Q3 revenues is $11.42 billion, reflecting a 7.4% increase from the previous year [2][8] - The Zacks Consensus Estimate for EPS is $1.30, indicating a 7.4% improvement from the prior year's figure [2][8] Segment Performance Expectations - **Diagnostics**: Revenue growth is expected to be impacted by a decline in COVID-19 testing revenues and volume-based procurement programs in China, with a projected decrease of 4.4% year over year [3][4] - **Established Pharmaceuticals (EPD)**: Strong performance is anticipated across key markets, with a year-over-year revenue increase of 9%, driven by biosimilars as a new growth pillar [5][6] - **Medical Devices**: Expected growth of 13.3% year over year, supported by the Diabetes Care division and the integration of Libre CGM data into Epic's EHR systems [6][11] - **Nutrition**: Anticipated revenue growth of 6.3% year over year, driven by strong sales of adult nutrition brands like Ensure and Glucerna [12] Recent Developments - Abbott's Structural Heart segment is expected to see growth from surgical valves and transcatheter products, bolstered by recent CE Mark and FDA approvals [9][11] - The Rhythm Management arm is gaining traction with the leadless AVEIR pacemaker, supported by favorable clinical data [10] Earnings ESP and Zacks Rank - Abbott has an Earnings ESP of 0.00% and currently holds a Zacks Rank of 3, indicating a neutral outlook for beating estimates [13]

Core Insights - Abbott has shown strong growth and market share gains in its Nutrition business, with a focus on adult nutrition products and a strategic emphasis on biosimilars in its Established Pharmaceuticals division [1][3][10] - The Diabetes Care segment is benefiting from the success of the FreeStyle Libre continuous glucose monitoring system, which has achieved global leadership and is expanding with new FDA-approved products [5][6] - Macroeconomic challenges and currency fluctuations pose potential risks to Abbott's financial performance [1][12][13] Nutrition Business Performance - Abbott's Nutrition business reported 3.4% organic growth in Q2 2025, driven by a 6.6% increase in Adult Nutrition sales [4][9] - The strong demand for Ensure and Glucerna brands supports the growth in Adult Nutrition, while Pediatric Nutrition remains robust in the U.S. with the Similac brand leading the market [4][9] Diabetes Care Segment - Sales of the FreeStyle Libre CGM system exceeded $1.9 billion in Q2 2025, reflecting a 19.6% organic growth, with U.S. sales rising nearly 26% [6][9] - The introduction of new over-the-counter CGM systems marks a significant expansion opportunity for Abbott in the U.S. market [5] Established Pharmaceuticals Division - Abbott's EPD achieved 7.7% organic growth in Q2 2025, with a focus on branded generics in emerging markets [11] - The division is well-positioned for sustainable growth, with a five-year CAGR of 8% and plans for biosimilar launches starting in 2026 [10][11] Financial Performance and Market Position - Abbott's market capitalization stands at $231.06 billion, with an earnings yield of 3.9%, significantly higher than the industry average of 0.2% [2] - The company has outperformed the industry, with a 17.5% stock price increase over the past year compared to a 0.3% decline in the industry [2]