Abbott Laboratories ABT reported first-quarter 2025 adjusted earnings per share (EPS) of $1.09, which beat the Zacks Consensus Estimate by 1.9%. The figure improved 11.2% from the prior-year quarter’s level. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
GAAP EPS was 76 cents compared with 70 cents in the first quarter of 2024.
Following the earnings announcement, ABT stock fell 0.8% at pre-market trading today.
ABT’s Revenues
Worldwide sales of $10.36 billion were up 4% year over year on a reported basis. However, the top line missed the Zacks Consensus Estimate by 0.6%.
Organically, sales improved 6.9% year over year. Organic sales, ex-COVID rose 8.3% year over year.
ABT’s Q1 Results in Detail
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.
In the first quarter, Established Pharmaceuticals’ product sales increased 2.7% on a reported basis (7.8% on an organic basis) to $1.26 billion.
Organic sales in key emerging markets improved 9.3% year over year. This was led by double-digit growth in several countries, including Asia, Latin America and the Middle East.
In the first quarter, the Medical Devices segment’s sales rose 9.9% year over year on a reported basis (12.6% organically) to $4.89 billion.
Sales growth was led by Diabetes Care, Structural Heart and Heart Failure and Electrophysiology. Several products, including FreeStyle Libre, Navitor, TriClip, Amplatzer Amulet and AVEIR, contributed to the strong performance.
The Diabetes Care division reported organic sales growth of 19.8% year over year, led by sales of continuous glucose monitors, which accounted for $1.70 billion. Structural Heart sales rose 14.7%, and Heart Failure sales improved 12.4% year over year organically.
The Vascular division recorded organic sales growth of 5.7%. The Electrophysiology, Rhythm Management and Neuromodulation divisions recorded organic growth of 9.9%, 6.1% and 2.2%, respectively, in the quarter under review.
For the first quarter, Nutrition sales rose 3.8% year over year on a reported basis (up 6.8% organically) to $2.15 billion.
Pediatric Nutrition sales were up 4.9%, and Adult Nutrition sales improved 8.7% organically. According to the company, Adult Nutrition sales benefited from the strong global growth of Ensure and Glucerna, Abbott's market-leading brands.
For the first quarter, Diagnostics sales were down 7.2% year over year on a reported basis (down 4.9% organically) to $2.05 billion. Organic sales, ex-COVID, rose 0.5% year over year.
Core Laboratory Diagnostics sales were up 0.9% organically. Molecular Diagnostics’ sales declined 3.5% on an organic basis. Rapid Diagnostics sales were down 16.1%. Point of Care Diagnostics sales increased 3.2%.
Margin Details of ABT
In the first quarter, the gross profit rose 7.1% year over year to $5.89 billion despite a 0.1% increase in the cost of products sold (excluding amortization expense). The gross margin expanded 166 basis points (bps) to 56.9%.
Selling, general and administration expenses rose 3.4% year over year to $3.06 billion. Research and development expenses rose 4.7% year over year to $716 million. The company reported an adjusted operating profit of $2.11 billion, up 13.7% year over year. Also, the adjusted operating margin expanded 175 bps to 20.4%.
2025 Guidance
Abbott reaffirmed its full-year 2025 guidance.
The company expects full-year adjusted diluted EPS to be in the range of $5.05-$5.25. The Zacks Consensus Estimate for the metric is pegged at $5.15.
Abbott Laboratories Price, Consensus and EPS Surprise
Abbott Laboratories Price, Consensus and EPS Surprise
Full-year 2025 organic sales growth is expected to be in the range of 7.5-8.5%. The Zacks Consensus Estimate for sales is currently pegged at $44.42 billion, suggesting a 5.9% improvement from the 2024 level.
For the second quarter of 2025, adjusted diluted EPS is expected to be between $1.23 and $1.27. The Zacks Consensus Estimate for the metric is pegged at $1.25.
Our Take
Abbott exited the first quarter of 2025 on a mixed note. While its earnings beat estimates, revenues missed the same. However, the figures improved on a year-over-year basis.
All business segments experienced growth during the reported quarter, except Diagnostics. Meanwhile, Abbott’s Diagnostics sales growth continued to be adversely impacted by year-over-year declines in COVID-19 testing-related sales, along with volume-based procurement programs in China.
During the reported quarter, Abbott obtained CE Mark for its Volt PFA System to treat patients battling atrial fibrillation (AFib). Additionally, the company initiated its U.S. pivotal trial, TECTONIC, to evaluate its investigational Coronary Intravascular Lithotripsy (IVL) System in treating severe calcification in coronary arteries prior to implanting a stent. Meanwhile, Abbott's two new manufacturing and R&D investments in Illinois and Texas are projected to go live by the end of 2025.
In addition, the expansion of both margins is encouraging.
ABT’s Zacks Rank and Key Picks
Abbott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI.
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a loss of 13 cents. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company beat on earnings in each of the trailing four quarters, the average surprise being 70.9%.
Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, which exceeded the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.
VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.9%.
Masimo, currently sporting a Zacks Rank #1, reported a fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.
MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.4%.
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