ABT
Abbott Laboratories
NYSE
8-K: Abbott Laboratories Reports Strong First-Quarter 2025 Results, Reaffirms Full-Year Guidance
Sentiment:
Earnings Release
16 April 2025 7:36 AM
Abbott Laboratories announced positive first-quarter 2025 results, with sales growth and adjusted EPS exceeding expectations, and reaffirmed its full-year 2025 financial guidance.
Better than expected
The company's adjusted EPS of $1.09 exceeded expectations.
Organic sales growth of 6.9 percent surpassed previous forecasts.
The adjusted operating margin of 21.0 percent was higher than anticipated.
Summary
- Abbott Laboratories reported a 4.0 percent increase in first-quarter sales on a reported basis, reaching $10.358 billion.
- Organic sales grew by 6.9 percent, or 8.3 percent when excluding COVID-19 testing-related sales.
- GAAP diluted EPS was $0.76, while adjusted diluted EPS reached $1.09, showing double-digit growth compared to the previous year.
- The company reaffirmed its full-year 2025 financial guidance, projecting organic sales growth between 7.5% and 8.5%.
- Abbott's adjusted operating margin is expected to be between 23.5% and 24.0% of sales for the full year.
- The company anticipates full-year adjusted diluted earnings per share to be in the range of $5.05 to $5.25.
- A quarterly dividend of $0.59 per share was declared, payable on May 15, 2025.
- Medical Devices sales increased 9.9 percent on a reported basis and 12.6 percent on an organic basis.
- Diagnostics sales decreased 7.2 percent on a reported basis, decreased 4.9 percent on an organic basis, or increased 0.5 percent when excluding COVID-19 testing-related sales.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results, reaffirmation of guidance, and strategic product advancements. The tone is optimistic, reflecting confidence in the company's performance and future prospects.
Positives
- Strong sales growth in the first quarter, driven by Medical Devices and Nutrition segments.
- Double-digit growth in adjusted diluted EPS.
- Reaffirmation of full-year 2025 financial guidance.
- Successful product launches and clinical trial initiations, including the Volt PFA System and Coronary IVL System.
- Continued dividend increases, marking 53 consecutive years.
- Significant growth in Diabetes Care, particularly in continuous glucose monitors.
- Adjusted gross margin increased 140 basis points to 57.1 percent.
Negatives
- Diagnostics sales decreased 7.2 percent on a reported basis, impacted by declining COVID-19 testing-related sales and volume-based procurement programs in China.
- COVID-19 testing-related sales decreased from $204 million in Q1 2024 to $84 million in Q1 2025.
- Organic sales in Diagnostics decreased 4.9 percent.
Risks
- The company faces risks and uncertainties that may cause actual results to differ materially from forward-looking statements.
- Economic, competitive, governmental, and technological factors could affect Abbott's operations.
- Decline in COVID-19 testing-related sales could continue to impact Diagnostics sales.
- Volume-based procurement programs in China may continue to affect Core Laboratory Diagnostics sales.
Future Outlook
Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5% and adjusted diluted earnings per share of $5.05 to $5.25.
Management Comments
- 'Once again, Abbott's diversified business model delivered top-tier sales and EPS growth,' said Robert B. Ford, chairman and chief executive officer, Abbott.
- 'It is this diversification and execution that allows Abbott to navigate through periods of uncertainty and continually deliver sustainable growth.'
Industry Context
Abbott's performance reflects a broader trend in the healthcare industry, with a focus on diversified portfolios and innovation in medical devices and diagnostics. The company's growth in Medical Devices, particularly in Diabetes Care, aligns with the increasing demand for advanced healthcare technologies.
Comparison to Industry Standards
- Abbott's organic sales growth of 6.9% is competitive compared to peers like Medtronic and Johnson & Johnson, which also have diversified healthcare portfolios.
- The 21.0% adjusted operating margin is strong, placing Abbott among the top performers in the medical device industry.
- The growth in Diabetes Care, driven by FreeStyle Libre, positions Abbott as a leader in the continuous glucose monitoring market, competing with companies like Dexcom and Senseonics.
- The CE Mark approval for the Volt PFA System allows Abbott to compete with companies like Boston Scientific and Medtronic in the atrial fibrillation treatment market.
Stakeholder Impact
- Shareholders will benefit from continued dividend payouts and potential stock appreciation due to strong financial performance.
- Employees may experience job security and growth opportunities due to company expansion and investments.
- Customers will have access to innovative healthcare technologies and products.
- Suppliers may see increased demand for their products and services.
- Creditors can be assured of the company's financial stability and ability to meet its obligations.
Next Steps
- Expand the use of Volt PFA System in EU markets throughout the second half of the year.
- Continue the U.S. pivotal trial, TECTONIC, to evaluate the Coronary Intravascular Lithotripsy (IVL) System.
- Bring two new manufacturing and R&D investments in Illinois and Texas live by the end of 2025.
Key Dates
- Dec. 31, 2024: Year ended for Annual Report on Form 10-K
- Feb. 21, 2025: Board of directors declared quarterly dividend
- March 2024: Initiation of discontinuing the ZonePerfect product line
- March 31, 2025: End of first quarter 2025
- April 15, 2025: Shareholders of record date for dividend
- April 16, 2025: Date of report and announcement of first-quarter results
- May 15, 2025: Dividend payment date
Keywords
Abbott, Financial Results, First Quarter 2025, Sales Growth, EPS, Guidance, Medical Devices, Diagnostics, Nutrition, Dividends, Organic Sales, COVID-19 Testing
ABT
Abbott Laboratories
NYSE
Sector: TBD
Filings with Classifications
Better than expected
30 April 2025 4:14 PM
Quarterly Report
- Net sales and earnings increased year-over-year, indicating improved financial performance.
- The gross profit margin improved, suggesting better cost management and pricing strategies.
- Strong growth in key segments like Medical Devices and Established Pharmaceutical Products contributed to the positive results.
Better than expected
16 April 2025 7:36 AM
Earnings Release
- The company's adjusted EPS of $1.09 exceeded expectations.
- Organic sales growth of 6.9 percent surpassed previous forecasts.
- The adjusted operating margin of 21.0 percent was higher than anticipated.
Better than expected
14 March 2025 4:07 PM
Proxy Statement
- Abbott's TSR performance is above the peer group median on a one-year and five-year basis.
- The company returned $5.1 billion to shareholders in 2024 and increased its dividend by 7.3% for 2025.
- Abbott's 2030 Sustainability Plan aims to reach 3 billion people a year with its products and services.
Worse than expected
21 February 2025 4:07 PM
Annual Report
- COVID-19 testing-related sales decreased significantly to $747 million in 2024 compared to $8.4 billion in 2022.
- The Diagnostics segment saw a sales decrease of 3.9% in 2024 and 38.2% in 2023, excluding the impact of foreign exchange, driven by lower demand for COVID-19 tests.
Delay expected
21 February 2025 4:07 PM
Annual Report
- There were no delays in Abbotts 2024 research and development activities that are expected to have a material impact on operations.
Better than expected
22 January 2025 7:13 AM
Quarterly Report
- Abbott exceeded the upper end of its initial guidance for both organic sales growth and adjusted earnings per share for 2024.
- The company's fourth-quarter sales growth and earnings per share growth were the highest of the year.
- Abbott's 2025 outlook projects strong organic sales growth and improved profitability.
Better than expected
31 October 2024 5:14 PM
Quarterly Report
- The company's net sales increased by 7.4% excluding foreign exchange impacts, exceeding expectations.
- The medical devices segment showed strong growth, with a 13.6% increase in sales for the first nine months of 2024, excluding foreign exchange impacts.
- The company's gross profit margin improved to 51.4% in the third quarter of 2024, indicating better profitability.
Better than expected
16 October 2024 7:37 AM
Quarterly Report
- The company's results exceeded expectations, particularly in organic sales growth and Medical Devices performance.
- The full-year EPS guidance was raised, indicating a positive outlook for the remainder of the year.
Worse than expected
31 July 2024 4:02 PM
Quarterly Report
- Net earnings decreased in both the second quarter and the first six months of 2024 compared to the prior year.
- The company recorded a $143 million loss on the sale of a non-core business.
- Diagnostic Products sales decreased due to lower demand for COVID-19 tests.
Better than expected
18 July 2024 7:37 AM
Quarterly Report
- Abbott's results were better than expected due to strong organic sales growth, particularly in the Medical Devices segment.
- The company raised its full-year EPS guidance, indicating improved financial performance compared to previous expectations.
Worse than expected
2 May 2024 4:11 PM
Quarterly Report
- Net earnings decreased from $1.318 billion to $1.225 billion compared to the same quarter last year.
- Diagnostic Products sales decreased by 17.6% due to lower COVID-19 testing demand.
Better than expected
17 April 2024 7:36 AM
Quarterly Report
- Abbott's results exceeded expectations due to strong organic growth in its base business and better than expected performance in the Medical Devices segment.
- The company raised its full-year sales and EPS guidance, indicating confidence in future performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.