Abbott(US:ABT)2025-10-15 14:00Financial Data and Key Metrics Changes - The company reported organic sales growth of 7.5%, excluding COVID test sales, with earnings per share rising to $1.3, reflecting high single-digit growth compared to last year [6][7][18] - 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% [19][18] Business Line Data and Key Metrics Changes - Nutrition sales increased by 4%, driven by adult nutrition, particularly in international markets with a 10% growth [8][9] - Diagnostics experienced modest sales growth, with core lab diagnostics growing 7% excluding China, while point of care diagnostics grew by 8% [10][11] - Established Pharmaceuticals (EPD) sales increased by 7%, led by double-digit growth in key markets [12] - Medical Devices sales grew by 12.5%, with significant contributions from diabetes care and electrophysiology [12][16] Market Data and Key Metrics Changes - International markets for adult nutrition saw a 10% growth, while the U.S. diagnostics market grew by 10% [9][59] - The European diagnostics market grew by 6-7%, and Latin America experienced mid-teens growth [61] Company Strategy and Development Direction - The company aims to sustain high single-digit organic sales growth and double-digit EPS growth, focusing on new product launches and addressing headwinds in diagnostics [24][27] - Investments in clinical trials and product launches are expected to drive future growth, with a commitment to maintaining a robust pipeline [27][28] 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 [22][24] - The company anticipates a recovery in the diagnostics business, particularly outside of China, with expectations for mid to high single-digit growth next year [58][62] Other Important Information - The company is advancing its biosimilar strategy and has made progress in regulatory approvals for several products [12] - The management highlighted the importance of maintaining a full portfolio to drive growth across various segments [50] 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 [22][24] Question: U.S. diabetes growth dynamics - U.S. diabetes care grew by 19%, with expectations for continued strong growth driven by new product launches [32][35] Question: Drivers of diagnostics business recovery - Management noted that while challenges remain in China, growth outside of China is accelerating, with expectations for a recovery in the diagnostics business [58][62] Question: Structural heart market outlook - Management acknowledged the importance of left atrial appendage closure and is optimistic about future growth in this area [96][100] Question: Barriers to CGM penetration in the U.S. - Management identified the need for increased awareness and coverage among primary care physicians as barriers to higher CGM penetration [101][106]