Abbott's Mixed Q4 Results Lead to Stock Decline Despite Gains
Abbott Reports Fourth Quarter Earnings
Abbott disclosed its fourth-quarter earnings, matching the expectations set by analysts. However, the company experienced a decline in share price due to slightly disappointing revenue figures.
Performance Overview
The healthcare giant revealed adjusted earnings per share of $1.34, aligning precisely with the consensus forecast. In the quarter, revenue exhibited a year-over-year increase of 7.2%, reaching $10.97 billion, yet it fell short of the anticipated $11.03 billion.
Following this announcement, Abbott's stock experienced a decline of 2.4%.
Annual Achievements and Growth Projections
Throughout the entire year of 2024, Abbott reported an impressive $42.0 billion in sales, demonstrating a growth of 4.6% on a reported basis. Notably, organic sales growth for the company's core operations, excluding revenues from COVID-19 testing, surged by 9.6%.
Robert B. Ford, the chairman and CEO of Abbott, shared, "We finished the year with very strong momentum. Sales growth and earnings per share growth in the fourth quarter were the highest of the year."
Future Outlook and Expectations
Looking forward, Abbott has projected organic sales growth for the full year of 2025 to be between 7.5% to 8.5%. The company anticipates adjusted earnings per share in the range of $5.05 to $5.25 for 2025, which is slightly below the analyst consensus of $5.16.
Medical Devices Segment Success
Abbott's Medical Devices segment emerged as a highlight during this period, posting sales that increased by 13.7%, totaling $5.05 billion in the fourth quarter. Within this segment, the Diabetes Care unit excelled, achieving a remarkable growth rate of 20.1%, driven largely by continued demand for the FreeStyle Libre continuous glucose monitoring system.
Dividend Declarations
The board of directors at Abbott declared a quarterly dividend of $0.59 per share, marking the company's 404th consecutive quarterly dividend payment, reinforcing its commitment to returning value to shareholders.
Frequently Asked Questions
What were Abbott's earnings per share for Q4?
Abbott reported adjusted earnings per share of $1.34 for the fourth quarter.
How did Abbott's stock perform following the earnings report?
Abbott's stock dropped by 2.4% after the earnings report was released.
What was Abbott's total revenue for the fourth quarter?
The total revenue for Abbott in the fourth quarter was $10.97 billion.
What is Abbott's outlook for 2025?
Abbott projects 7.5% to 8.5% organic sales growth for the full year 2025.
What segment showed significant growth for Abbott?
The Medical Devices segment showed significant growth, with a rise of 13.7% in sales for Q4.
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