Want to dig deeper on Abbott Laboratories and thousands of companies?
Rapidly search an extensive universe of public and private content — earnings transcripts, company filings, equity research, trade journals, and more.
Request a Free TrialCompanies by industry
Aerospace & DefenseAutomobile ComponentsAutomobilesBanksBeveragesBiotechnologyBroadline RetailCapital MarketsChemicalsCommunications EquipmentConsumer FinanceConsumer Staples Distribution & RetailContainers & PackagingElectric UtilitiesElectronic Equipment, Instruments & ComponentsEnergy Equipment & ServicesEntertainmentFinancial ServicesFood ProductsGround TransportationHealth Care Equipment & SuppliesHealth Care Providers & ServicesHotels, Restaurants & LeisureHousehold DurablesHousehold ProductsIT ServicesIndustrial ConglomeratesIndustrial REITsInsuranceInteractive Media & ServicesLife Sciences Tools & ServicesMachineryMediaMetals & MiningMulti-UtilitiesOil, Gas & Consumable FuelsPersonal Care ProductsPharmaceuticalsSemiconductors & Semiconductor EquipmentSoftwareSpecialized REITsSpecialty RetailTechnology Hardware, Storage & PeripheralsTextiles, Apparel & Luxury GoodsTobaccoWireless Telecommunication Services
Abbott Laboratories Earnings - Analysis & Highlights for Q1 2025
Overview
PositivesNegativesOutlook
- Adjusted EPS of $1.09 grew 11% YoY and finished at the high end of the guidance range.
- Sales grew high-single digits and EPS grew double digits.
- Sales increased by 6.9% or 8.3% excluding COVID testing-related sales.
- The company achieved high-single digit sales growth and double-digit EPS growth in Q1.
- The company guided 70 basis points of improvement and saw about 140 basis points in Q1.
- Sales declined by 5% in Q1 due to the YoY decline in COVID-19 testing sales, resulting from a much weaker COVID season, which primarily impacted growth in the Rapid Diagnostics business.
- The company has ongoing litigation on NEC, which doesn't necessarily lead to a conclusion about whether businesses are here to drive value or not.
- The company had some challenges in its Nutrition business in Q3, due to commercial execution challenges.
- The company expects an unfavorable impact of around 1% on full-year reported sales, including an expected unfavorable impact of around 0.5% on Q2 reported sales.
- The company is unable to predict with reasonable certainty and without unreasonable effort, the timing and impact of certain items, which could significantly impact Abbott's results in accordance with GAAP.
- The company reaffirmed its guidance range.
Q&A Highlights from Abbott Laboratories Earnings Call Q1 2025
- Analyst asked about the offsets of the manufacturing footprint and how it is used to the company's advantage.
- The company is maintaining its guidance range, and excluding COVID testing sales, which are the company's lowest gross margin product, they grew over 8%. The company is focused on gross margin expansion and tariff mitigation strategies. They have a strong assessment of every possible scenario, including how to mitigate the impact of tariffs, and they feel comfortable with the information they have. They have not raised their EPS guidance, but they have reaffirmed it, and they are working on short-term and long-term mitigation plans.
- The company is maintaining its guidance range, and excluding COVID testing sales, which are the company's lowest gross margin product, they grew over 8%. The company is focused on gross margin expansion and tariff mitigation strategies. They have a strong assessment of every possible scenario, including how to mitigate the impact of tariffs, and they feel comfortable with the information they have. They have not raised their EPS guidance, but they have reaffirmed it, and they are working on short-term and long-term mitigation plans.
- Analyst asked about the impact of M&A on the company's capital allocation strategy.
- The company is not shifting its mindset regarding M&A, and they are still looking at opportunities in Devices and Diagnostics. They have a strong balance sheet to be able to do that, and they are being strategic and disciplined about their approach. They are focused on protecting their EPS and profitability, and they are not updating their thinking or framework regarding M&A.
- The company is not shifting its mindset regarding M&A, and they are still looking at opportunities in Devices and Diagnostics. They have a strong balance sheet to be able to do that, and they are being strategic and disciplined about their approach. They are focused on protecting their EPS and profitability, and they are not updating their thinking or framework regarding M&A.
- Analyst asked about the 7.5% to 8.5% organic growth rate, which is impressive considering the macro environment.
- Robert B. Ford explained that the company is seeing acceleration in the back half, with the starting point of 7% in Q1. He did not specify whether it is due to Volt stepping up or China improving in the back half.
- Robert B. Ford explained that the company is seeing acceleration in the back half, with the starting point of 7% in Q1. He did not specify whether it is due to Volt stepping up or China improving in the back half.
- Analyst asked about the tariff impact on gross margin.
- Philip P. Boudreau explained that the company is seeing a strong gross margin, with sequential growth each quarter in 2022, and is pleased with Q1 delivering on that. He noted that the FX movement is also helping to offset the tariffs, which would largely be felt in the gross margin.
- Philip P. Boudreau explained that the company is seeing a strong gross margin, with sequential growth each quarter in 2022, and is pleased with Q1 delivering on that. He noted that the FX movement is also helping to offset the tariffs, which would largely be felt in the gross margin.
- Analyst asked about the status of AVEIR, a leadless pacing system, and its potential impact on Abbott's business.
- Robert B. Ford, Abbott's Executive Vice President and Chief Financial Officer, provided an update on AVEIR, stating that the company has been working to establish a strong foundation for the product's success. He noted that the company has increased accounts, trained physicians, and doubled the amount of implants per day, leading to a 30% increase in monthly implants. Ford also mentioned that Abbott is investing in R&D for next-generation leadless products and a leadless conduction system pacing product, which has received FDA breakthrough designation. He noted that the company's goal is to start the pivotal trial for this product in 2026.
- Robert B. Ford, Abbott's Executive Vice President and Chief Financial Officer, provided an update on AVEIR, stating that the company has been working to establish a strong foundation for the product's success. He noted that the company has increased accounts, trained physicians, and doubled the amount of implants per day, leading to a 30% increase in monthly implants. Ford also mentioned that Abbott is investing in R&D for next-generation leadless products and a leadless conduction system pacing product, which has received FDA breakthrough designation. He noted that the company's goal is to start the pivotal trial for this product in 2026.
- Analyst asked about the impact of tariffs and macroeconomic factors on Abbott's business.
- Ford acknowledged that tariffs and macroeconomic factors are important concerns for the company, and that they are working to mitigate the impacts. He noted that the company has been doing a lot of modeling and thinking about how to make the impacts more sustainable, and that they are not using gap closers as a solution. Ford also mentioned that the company did not receive any questions about their Libre product, which he found interesting.
- Ford acknowledged that tariffs and macroeconomic factors are important concerns for the company, and that they are working to mitigate the impacts. He noted that the company has been doing a lot of modeling and thinking about how to make the impacts more sustainable, and that they are not using gap closers as a solution. Ford also mentioned that the company did not receive any questions about their Libre product, which he found interesting.
- Analyst asked about the company's diversified model and its ability to provide growth opportunities.
- Ford reiterated the company's commitment to providing sustained and reliable growth and performance, and noted that their diversified model serves them well. He stated that the company is focused on expanding their pipeline and providing new growth opportunities, while also maintaining their gross margin and operating margin expansion.
- Ford reiterated the company's commitment to providing sustained and reliable growth and performance, and noted that their diversified model serves them well. He stated that the company is focused on expanding their pipeline and providing new growth opportunities, while also maintaining their gross margin and operating margin expansion.
- Analyst asked about the company's guidance for the year.
- Ford reaffirmed the company's guidance for the year, stating that they are confident in their ability to maintain sustainable and reliable growth and performance. He noted that the company's diversified model and focus on expanding their pipeline will continue to provide opportunities for growth.
- Ford reaffirmed the company's guidance for the year, stating that they are confident in their ability to maintain sustainable and reliable growth and performance. He noted that the company's diversified model and focus on expanding their pipeline will continue to provide opportunities for growth.
Related Companies:
