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 Laboratories (ABT) reported a gross profit of $6.29 billion in Q2, reflecting an 8.9% year-over-year increase, with a gross margin expansion to 56.4% driven by a favorable product mix, particularly in the Medical Devices segment [1][9] Financial Performance - The cost of products sold increased by 5.4% (excluding amortization), yet gross margin improved by 79 basis points (bps) [1][4] - Strong growth in diabetes care, structural heart, and electrophysiology within the Medical Devices segment contributed significantly to profitability [1][2] - The Nutrition business benefitted from continued demand for higher-margin products like Ensure and Glucerna [2] Market Conditions - Improved foreign exchange conditions, particularly a weaker U.S. dollar, provided a modest tailwind, contributing a 0.5% favorable year-over-year impact on sales [3] - Cost discipline in manufacturing and reduced COVID testing impact supported the gross margin improvement despite macroeconomic challenges such as tariffs and pricing pressures in China [4] Peer Comparison - Thermo Fisher (TMO) experienced a gross margin contraction of 83 bps to 41.2% due to declining COVID-related revenues, despite growth in core businesses [5] - Boston Scientific (BSX) saw a gross margin decline of 152 bps to 67.7%, primarily due to inventory charges from the discontinuation of its ACURATE valve, although underlying performance remained strong in high-margin areas [6] Stock Performance - Abbott's shares increased by 16.8% over the past year, outperforming the industry growth of 4.1% and the S&P 500's growth of 15.6% [7][9] Valuation Metrics - Abbott currently trades at a forward Price-to-Sales (P/S) ratio of 4.88X, below the industry average of 5.61X [10]