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• Revenue Growth: Sales increased 6.9% or 8.3% excluding COVID testing-related sales.

• Adjusted Earnings Per Share (EPS): $1.09, an increase of 11% compared to the prior year.

• Nutrition Sales Growth: 7% increase, driven by high-single-digit growth in adult nutrition and double-digit growth in US pediatric nutrition.

• Diagnostics Sales Decline: 5% decrease due to a decline in COVID-19 testing sales.

• EPD Sales Growth: 8% increase, with double-digit growth in more than half of key markets.

• Medical Devices Sales Growth: 12.5% increase, with diabetes care sales of continuous glucose monitors growing over 20%.

• Gross Margin: 57.1% of sales, an increase of 140 basis points compared to the prior year.

• Operating Margin: 21% of sales, reflecting an increase of 130 basis points compared to the prior year.

• Foreign Exchange Impact: Unfavorable year-over-year impact of 2.8% on first-quarter sales.

• Second Quarter EPS Forecast: Adjusted EPS expected to be in the range of $1.23 to $1.27.

• Warning! GuruFocus has detected 2 Warning Sign with CFG.

Release Date: April 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Abbott Laboratories (NYSE:ABT) achieved high single-digit sales growth and double-digit earnings per share growth in the first quarter of 2025.

• The company's nutrition segment saw a 7% increase in sales, driven by high-single-digit growth in adult nutrition and double-digit growth in US pediatric nutrition.

• Medical devices sales grew 12.5%, with notable growth in diabetes care, electrophysiology, and structural heart segments.

• Abbott Laboratories (NYSE:ABT) expanded its gross margin by 140 basis points and operating margin by 130 basis points compared to the prior year.

• The company is on track to launch more than 25 key new products over the next three years, indicating a strong pipeline for future growth.

Negative Points

• Sales in the diagnostics segment declined by 5% due to a year-over-year decline in COVID-19 testing sales.

• The company faces financial impacts from new tariff policies, with an estimated tariff impact of a few hundred million dollars in 2025.

• Foreign exchange had an unfavorable year-over-year impact of 2.8% on first-quarter sales.

• Volume-based procurement programs in China negatively impacted core laboratory diagnostics growth.

• The company is navigating challenges in the Chinese market due to price-driven volume-based procurement programs, which have not resulted in volume offsets.

Q & A Highlights

Q: Can you explain the impact of tariffs on Abbott's financials and how the company plans to mitigate these effects? A: Robert Ford, CEO, explained that the tariffs are expected to have a financial impact of a few hundred million dollars in 2025, primarily affecting the US and China. Abbott plans to mitigate this through its diversified manufacturing network, which includes 90 sites worldwide. The company is leveraging its global manufacturing strategy to manage the impact and is considering various scenarios to offset the tariffs, including potential adjustments in FX, interest rates, and tax strategies.