Photographer: Jamie Kelter Davis/Bloomberg Abbott Laboratories said first-quarter profit will be lower than Wall Street expected after the company was forced to offer discounts on nutrition products to lure price-conscious customers, sending shares plunging. The company forecast first-quarter adjusted earnings per share to reach $1.12 to $1.18, compared to the average Wall Street estimate of $1.19 a share. Analysts’ expectations were already low, as they anticipated the company to issue more conservative ...

Core Insights - Abbott Laboratories reported fourth-quarter 2025 adjusted EPS of $1.50, aligning with estimates and showing an 11.9% increase from the previous year [1] - Full-year 2025 adjusted EPS was $5.15, reflecting a 10.3% year-over-year growth [1] - The company’s fourth-quarter revenues were $11.46 billion, a 4.4% increase year-over-year, but missed estimates by 2.8% [2] Financial Performance - The GAAP EPS for Q4 was $1.01, down from $5.27 in Q4 2024 [1] - Full-year 2025 worldwide sales reached $44.33 billion, up 5.7% year-over-year, but also missed estimates by 0.6% [2] - Gross profit for Q4 increased by 8.4% to $6.54 billion, with a gross margin expansion of 208 basis points to 57% [9] Segment Performance - Established Pharmaceuticals segment sales rose 9% to $1.38 billion, with organic sales growth of 7.1% [4] - Medical Devices segment sales increased 12.3% to $5.68 billion, driven by strong growth in Electrophysiology, Heart Failure, and Diabetes Care [5] - Nutrition sales declined 8.9% to $1.94 billion, with Pediatric Nutrition down 10.1% and Adult Nutrition down 8.2% [6][7] Future Guidance - For 2026, Abbott projects adjusted EPS between $5.55 and $5.80, with organic sales growth expected to be between 6.5% and 7.5% [11] - The first quarter of 2026 EPS is projected to be between $1.12 and $1.18 [11] Market Reaction - Following the earnings announcement, Abbott's stock fell 5.4% in pre-market trading [3] - The decline in Nutrition sales is attributed to lower sales volumes and strategic pricing actions [12]

Core Insights - Abbott Laboratories reported fourth-quarter 2025 sales of $11.46 billion, slightly below the consensus estimate of $11.80 billion, with a sales increase of 4.4% on a reported basis and 3% on an organic basis [2][10] - The company provided a first-quarter 2026 earnings outlook of $1.12-$1.18 per share, lower than the consensus of $1.20, and projected fiscal 2026 adjusted earnings of $5.55-$5.80 per share compared to Wall Street's expectation of $5.67 [10] Earnings Snapshot - Adjusted earnings for the quarter were reported at $1.50, aligning with Wall Street estimates [2] - Medical Devices segment sales increased by 12.3% on a reported basis and 10.4% on an organic basis, totaling $5.68 billion [3] Segment Performance - Sales growth in Medical Devices was driven by double-digit growth in electrophysiology, heart failure, diabetes care, and rhythm management [4] - Diabetes Care sales of continuous glucose monitors reached $2.0 billion, growing 15% [5] - Global Diagnostics sales decreased by 2.5% to $2.46 billion, with COVID-19 testing-related sales at $89 million, down from $176 million a year ago [6] - Worldwide Nutrition sales fell by 8.9% to $1.94 billion, attributed to lower sales volumes and strategic pricing actions [7] - Established Pharmaceuticals sales increased by 9% to $1.38 billion [7] Strategic Developments - In December 2025, the FDA approved Abbott's Volt PFA System for treating atrial fibrillation [5] - Abbott announced a $21 billion acquisition of Exact Sciences Corp, marking a significant deal in the healthcare sector [8] Guidance - The company anticipates organic sales growth of 6.5% to 7.5% for 2026 [10] Stock Performance - Abbott Laboratories shares fell by 7.37% to $111.63, reaching a new 52-week low [11]

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]

Core Insights - Abbott missed analysts' estimates for third-quarter revenue, reporting total revenue of $11.37 billion, slightly below the expected $11.40 billion, leading to a 3% drop in shares premarket [1][2]. Revenue Breakdown - Diagnostics segment sales fell 6.6% to $2.25 billion, missing the estimate of $2.29 billion, primarily due to a decline in COVID-19 testing demand [3]. - Medical devices segment sales increased 14.8% to $5.45 billion, driven by strong demand for continuous glucose monitors and heart devices [3]. External Factors - The halt of foreign aid has disrupted the supply chain for medical products and diagnostic tests in low-income countries, impacting Abbott's operations [2]. - Abbott is facing pricing pressure from China's procurement program, which purchases medical devices in bulk at significant discounts [2]. Profitability - On an adjusted basis, Abbott reported a third-quarter profit per share of $1.30, aligning with analysts' expectations [4]. - The company revised its annual adjusted profit forecast to a range of $5.12 to $5.18 per share, slightly down from the previous range of $5.10 to $5.20 [4].

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]

Summary of Henry Schein (HSIC) 2025 Conference Call Industry Overview - The discussion primarily revolves around the dental and medical supply industry, focusing on trends in dental demand and the company's performance in these sectors [3][4][5][6][36]. Key Points on Dental Market Trends - **January Softness**: January was noted as a soft month for dental demand, attributed to weather impacts and other market conditions [4][5]. - **Improvement in Demand**: February and March showed improvement in patient traffic, with April continuing this positive trend [5][6]. - **Demand vs. Supply**: There is a noted demand for dental services in the U.S. that exceeds supply, leading to an increase in dental office build-outs [6][7][10]. - **De Novo Build-Outs**: The rate of new dental office openings is higher than in previous years, driven by larger Dental Service Organizations (DSOs) recognizing the demand-supply gap [7][10][11]. - **Retirement of Dentists**: An increase in dentist retirements during the pandemic has contributed to the supply shortage [12][13]. Financial Guidance and Performance - **2025 Guidance**: The company maintained its revenue growth guidance of 2% to 4%, primarily driven by internal growth, despite foreign exchange headwinds [14][15][16]. - **Cost Management**: The company aims to achieve $75 million to $100 million in cost savings through restructuring initiatives [23][24]. Product and Service Innovations - **New Product Launches**: The company is focusing on new products like the TAPR Pro conical implant and technology products from Henry Schein One, which enhance customer engagement [19][20]. - **Home Solutions Growth**: The home solutions segment is growing at a high single-digit rate, with a significant acquisition (Ascentis) contributing to this growth [37][38]. Market Dynamics in Implants - **Implant Market Trends**: The U.S. implant market is relatively flat, with growth shifting towards value implants as general practitioners increasingly perform straightforward procedures [28][29][30]. - **Market Share Gains**: The company has gained market share in Europe, particularly in the premium implant segment [26][27]. Integration of Medical and Dental Services - **Shared Infrastructure**: Henry Schein has integrated its medical and dental businesses, sharing distribution centers and management teams, with about 25% to 30% common SKUs [40][41][42]. - **Crossover Services**: There is an increasing trend of community health centers offering both medical and dental services, enhancing cross-selling opportunities [43][44]. Strategic Partnerships and Future Outlook - **Collaboration with KKR**: The partnership with KKR is expected to enhance operational efficiency and provide insights into cross-selling opportunities [45][46][48]. - **Technology Adoption**: The company is focusing on increasing the adoption of its cloud-based systems (Dentrix Ascend) among its customer base, currently at about 10% penetration [49][50]. Conclusion - The company expresses optimism about the future, driven by increased dental office build-outs, strategic partnerships, and a focus on innovative products and services [52][53].