Abbott Laboratories (ABT) Q2 2025 Earnings Call Highlights: Strong Growth in Medical Devices ...\n\nGuruFocus News <time>Fri, Jul 18, 2025, 2:08 AM</time> 4 min read \n\nIn This Article: \n\nABT <fin-streamer>+2.62%</fin-streamer>\n\nSales Growth: 6.9% increase; 7.5% excluding COVID testing sales.\n\nAdjusted Earnings Per Share (EPS): $1.26, 11% growth compared to prior year.\n\nGross Margin: 57% of sales, 100 basis points increase from prior year.\n\nOperating Margin: 22.9% of sales, 100 basis points increase from prior year.\n\nNutrition Sales Growth: 3.5% increase in the quarter.\n\nDiagnostics Sales Decline: 1.5% decrease, impacted by COVID testing sales decline and China procurement programs.\n\nEPD Sales Growth: Nearly 8% increase, surpassing $1 billion in quarterly sales.\n\nMedical Devices Sales Growth: 12% increase, driven by diabetes care, heart failure, structural heart, electrophysiology, and cardiac rhythm management.\n\nDiabetes Care Sales: $1.9 billion, 19.5% growth.\n\nHeart Failure Sales Growth: 14% increase in the quarter.\n\nForeign Exchange Impact: Favorable 0.5% impact on second quarter sales.\n\nR&amp;D and SG&amp;A Expenses: Adjusted R&amp;D at 6.3% of sales; adjusted SG&amp;A at 27.7% of sales.\n\nThird Quarter EPS Forecast: $1.28 to $1.32.\n\nWarning! GuruFocus has detected 2 Warning Sign with WIT.\n\nRelease Date: July 17, 2025\n\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n\nPositive Points\n\nAbbott Laboratories (NYSE:ABT) reported high single-digit sales growth and over 100 basis points of margin expansion in both gross and operating margins.\n\nThe company achieved double-digit earnings per share growth, exceeding consensus estimates.\n\nSales in the Nutrition segment increased by 3.5%, driven by strong demand for Ensure and Glucerna brands.\n\nMedical Devices sales grew by 12%, with significant contributions from diabetes care, heart failure, structural heart, electrophysiology, and cardiac rhythm management.\n\nAbbott Laboratories (NYSE:ABT) is making progress in its biosimilars portfolio, with 10 regulatory approval submissions completed and launches projected to begin in 2026.\n\nNegative Points\n\nDiagnostics sales declined by 1.5% due to a decrease in COVID testing sales and volume-based procurement programs in China, representing a significant headwind.\n\nThe company faces challenges in the China Core Lab market, impacting overall sales growth.\n\nThere are ongoing headwinds from COVID testing sales drop-off and changes in US funding for HIV testing.\n\nAbbott Laboratories (NYSE:ABT) is experiencing a $200 million impact from tariffs, which is affecting its financial performance.\n\nForeign exchange remains a headwind on the bottom line, despite being neutral on the top line.\n\nQ & A Highlights\n\nQ: Can you provide context on Abbott's 2025 performance and the headwinds faced this year? A: Robert Ford, CEO, explained that Abbott's goal is to ensure each business meets and exceeds expectations. Despite challenges like the decline in COVID testing sales and issues in the China Core Lab market, Abbott is committed to high single-digit growth and double-digit EPS growth. The company is optimistic about 2026, with headwinds expected to be behind them and new product launches on the horizon.\n\nQ: What trends are you seeing in the Diabetes and Electrophysiology (EP) product lines? A: Robert Ford noted strong performance in both areas, with US Libre sales up nearly 26% and EP showing double-digit growth. In Diabetes, the Basal segment and non-insulin user segment are doing well, and the dual analyte sensor is expected to drive further growth. In EP, the launch of Volt internationally is progressing well, with positive feedback on its performance.\n\nQ: What is Abbott's reaction to the proposed competitive bidding for CGM and comments on wearables? A: Robert Ford stated that the CMS proposal for competitive bidding was expected and should not impact Abbott significantly. Regarding wearables, Ford emphasized their power in behavior modification and health improvement, aligning with Abbott's mission. He also confirmed that the dual ketone sensor could drive share gains in intensive insulin patients.\n\nQ: Can you provide an update on the CRM business and its growth trajectory? A: Robert Ford highlighted that the CRM business has shown sustainable growth, with AVEIR pacing systems driving this momentum. The business has seen increased physician training and implant rates, and Abbott plans to continue innovating with next-generation products and international expansion.\n\nQ: What are Abbott's plans for M&amp;A, and how does it fit into the company's strategy? A: Robert Ford indicated that Abbott is focused on strategic M&amp;A opportunities in diagnostics and devices, aiming for acquisitions that fit strategically and generate attractive returns. The company is selective due to its strong organic growth pipeline.\n\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n\nThis article first appeared on GuruFocus.

Abbott Laboratories (ABT) Q2 2025 Earnings Call Highlights: Strong Growth in Medical Devices ...

Abbott Laboratories reported strong Q2 2025 financial performance, with 6.9% sales growth, 11% adjusted EPS increase, and 100 basis point margin expansions in gross and operating margins. Medical Devices sales rose 12%, driven by diabetes care, heart failure, and electrophysiology, while Nutrition sales grew 3.5%. Diagnostics sales declined 1.5% due to COVID testing and China procurement impacts. The company faces headwinds from tariffs, foreign exchange, and HIV testing funding changes, but remains optimistic about 2026 growth.