Apr 16, 02:13 PM

Abbott Labs Q1 2025 Earnings Beat EPS Estimates, Stock Slips on Revenue Miss; Plans $500M U.S. Expansion Amid Tariffs

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 revenue of $10.36 billion fell short of the expected $10.4 billion. Despite the revenue miss, Abbott reaffirmed its full-year guidance, projecting adjusted EPS for 2025 to be between $5.05 and $5.25, compared to the consensus of $5.15. The company's stock experienced a slight decline following the announcement, attributed to the revenue shortfall. Abbott's first-quarter performance was marked by a reported sales growth of 4.0%, with organic sales growth at 6.9% or 8.3% when excluding COVID-19 testing-related sales. The gross margin stood at 52.8%. Additionally, the company has now delivered six consecutive quarters of over 8% organic sales growth. In response to looming tariffs on medical devices and diagnostics, Abbott announced plans to invest $500 million in expanding its U.S. manufacturing capabilities. This investment includes the construction of two new facilities in Illinois and Texas, with the Illinois facility expected to add 200 new jobs and enhance research and development efforts. The company also noted an increase in demand for its diabetes products.

#Abbott Laboratories #Abbott #Illinois #Texas

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