Abbott Labs Q1 2025: Adjusted EPS $1.09, Stock Declines on Sales Miss, Plans $500M U.S. Investment

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Updated Apr 16, 2025, 02:43 PM

Abbott Laboratories reported its first-quarter 2025 earnings, with adjusted earnings per share (EPS) of $1.09, surpassing the consensus estimate of $1.07. However, the company's net sales of $10.36 billion fell short of the expected $10.4 billion. GAAP EPS was $0.76. Abbott reaffirmed its full-year guidance, projecting organic sales growth between 7.5% and 8.5% and adjusted EPS for the year to be in the range of $5.05 to $5.25. The company also projected second-quarter adjusted EPS to be between $1.23 and $1.27. The company's stock experienced a decline following the announcement, attributed to the sales miss. Despite the shortfall in revenue, Abbott's first-quarter performance showed a reported sales growth of 4.0% and an organic sales growth of 6.9%, or 8.3% when excluding COVID-19 testing-related sales. The reported gross margin was 52.8%. In response to looming tariffs on medical devices and diagnostics, Abbott announced plans to expand its U.S. manufacturing capabilities. The company intends to invest $500 million in two new facilities in Illinois and Texas, a move influenced by the Trump administration's policies. Additionally, there has been a noted increase in demand for Abbott's diabetes products.

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