Analysts Adjust Projections for Abbott After Earnings Release
Abbott Laboratories' Latest Financial Performance
Abbott Laboratories (NASDAQ: ABT) has recently released its second-quarter financial results, showcasing a performance that exceeded expectations in both sales and profits. The company's reported sales reached $11.14 billion, surpassing analysts' consensus forecast of $11.07 billion.
Sales and Earnings Highlights
In this quarter, Abbott achieved an adjusted earnings figure of $1.26 per share, slightly ahead of the consensus estimate of $1.25. This figure also fell within the management's guidance of $1.23 to $1.27. Abbott's CEO, Robert B. Ford, expressed optimism, stating, "Halfway through the year, we delivered high single-digit organic sales growth, double-digit EPS growth, expanded margin profiles, and continued advancements in our product pipeline. We see this momentum carrying into 2026."
Future Earnings Projections
The company refined its full-year earnings guidance for 2025, narrowing the range from $5.05-$5.25 per share to $5.10-$5.20 per share. Comparatively, the consensus estimate stands at $5.16. Additionally, Abbott anticipates organic sales growth between 7.5% and 8.0%, a slight adjustment from the earlier guidance of 7.5%-8.5%. This reflects a more conservative outlook on market conditions.
Adjusted Operating Margins and Performance Outlook
Abbott forecasted an adjusted operating margin of approximately 23.5%, holding steady from previous estimates but slightly below earlier projections of 23.5%-24.0%. For the upcoming third quarter of 2025, Abbott expects adjusted earnings of $1.28 to $1.32 per share, which is lower than the consensus target of $1.34.
Stock Market Reactions
Following the earnings report, Abbott's shares experienced an 8.5% decline, closing at $120.51. Market analysts responded to this dip with revised price targets based on the newly released financial data.
Analyst Price Target Adjustments
Several analysts have revised their price targets for Abbott following these results:
- BTIG analyst Marie Thibault maintained a "Buy" rating but reduced the price target from $148 to $145.
- Jefferies analyst Matthew Taylor upgraded Abbott from "Hold" to "Buy" and adjusted the price target from $143 to $145.
- Mizuho analyst Anthony Petrone kept a "Neutral" stance, lowering the price target from $140 to $135.
What This Means for Potential Investors
For those considering buying Abbott's stock, it's essential to weigh the analysts' insights against the revised earnings projections. The mixed updates signal a need for potential investors to approach Abbott's stock with a careful strategy, taking into account these adjustments and the company’s future trajectory in the competitive healthcare sector.
Frequently Asked Questions
What were Abbott's reported sales for Q2?
Abbott reported sales of $11.14 billion for the second quarter, exceeding expectations.
How did Abbott's adjusted earnings perform?
The adjusted earnings for Abbott were $1.26 per share, slightly higher than the consensus estimate of $1.25.
What is Abbott’s guidance for full-year 2025?
Abbott narrowed its earnings guidance for 2025 to a range of $5.10–$5.20 per share.
How did the stock react to the earnings announcement?
Abbott's stock dropped 8.5% following the earnings release, closing at $120.51.
Which analysts made recent adjustments to Abbott's price targets?
Analysts from BTIG, Jefferies, and Mizuho have adjusted their price targets for Abbott following the earnings results.
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