TLDR
- Abbott reported third-quarter adjusted earnings of $1.30 per share, matching analyst estimates
- Revenue came in at $11.37 billion, falling short of the $11.4 billion consensus estimate
- The company narrowed its full-year 2025 adjusted EPS guidance to $5.12-$5.18, maintaining the midpoint at $5.15
- Organic sales grew 5.5% year-over-year, led by the adult nutrition segment
- Abbott shares fell 2.7% to 2.8% in premarket trading following the earnings release
Abbott Laboratories reported mixed third-quarter results that left investors wanting more. The medical devices and nutrition products maker posted adjusted earnings of $1.30 per share, matching Wall Street expectations exactly.
Revenue for the quarter totaled $11.37 billion. This fell short of the consensus estimate of $11.4 billion.
The company narrowed its full-year guidance for the second time in 2025. Abbott now expects adjusted earnings per share between $5.12 and $5.18.
The previous guidance range was $5.10 to $5.20 per share. The midpoint remains unchanged at $5.15, which aligns with analyst expectations.
Despite hitting earnings targets, Abbott shares dropped in premarket trading. The stock fell between 2.7% and 2.8% to around $129.00.
This happened while futures tracking the S&P 500 index were up 0.6%. The divergence raised questions about investor sentiment.
Growth Driven by Nutrition Business
Organic sales increased 5.5% compared to the third quarter of last year. This growth included Covid-19-related sales and largely matched analyst estimates.
The adult nutrition segment led the way. This division includes the company’s Ensure shake products.
Abbott specifically called out this segment as the primary driver of quarterly growth. The nutrition business has become a key pillar of Abbott’s overall performance.
Reported Earnings Miss Estimates
On a reported basis, the picture looked different. Quarterly earnings per share came in at 94 cents.
This missed analyst estimates by 24%. The gap between adjusted and reported figures reflects various one-time items and adjustments.
Market Reaction Puzzles Observers
The reason for the stock’s decline wasn’t immediately clear. Abbott has outperformed the broader market this year.
The stock has risen 17% year-to-date. The S&P 500 has gained 13% over the same period.
Some analysts suggested investors expected more than just meeting estimates. After a strong run, the bar may have been set higher.
The revenue miss likely played a role in the negative reaction. Even a small shortfall can disappoint when expectations are elevated.
Abbott has seen substantial analyst activity in recent months. The company received 2 positive EPS revisions in the last 90 days.
However, it also received 21 negative EPS revisions during the same period. This suggests some analysts had been tempering their expectations heading into the report.
InvestingPro rates Abbott’s financial health score as “great performance.” The stock closed at $133.27 in the previous session before the earnings announcement.
