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On Wednesday, Stifel analysts reiterated a Buy rating and a $135.00 price target for Abbott Laboratories (NYSE:ABT), a $231 billion healthcare giant, following the company’s first quarter earnings report. According to InvestingPro data, Abbott trades at a P/E ratio of 16.4x, which appears attractive relative to its near-term earnings growth potential. Analysts at Stifel found the results to be largely as expected, with no significant surprises to the upside or downside. Abbott reported sales of $10.36 billion, a 6.9% increase year-over-year, aligning closely with Stifel’s projection of $10.35 billion and slightly below the consensus estimate of $10.41 billion.
The company’s Diagnostic division, which represents about 20% of sales, decreased by 4.9% year-over-year, underperforming against both Stifel and consensus projections. This was attributed to lower-than-anticipated Covid testing revenues and the impact of volume-based procurement in China. On the other hand, the Medical (TASE:BLWV) Device division, accounting for approximately 47% of sales, saw a robust increase of 12.6% year-over-year. This performance contributes to Abbott’s impressive total revenue of $41.95 billion over the last twelve months, with a healthy gross profit margin of 55.6%. For deeper insights into Abbott’s financial metrics and growth potential, check out the comprehensive Pro Research Report available on InvestingPro. Notably, the Diabetes, Structural Heart, and Heart Failure segments experienced significant growth, with Diabetes leading at a 19.8% increase.
Abbott’s US Electrophysiology business also demonstrated resilience, growing by approximately 11%. This is particularly noteworthy when contrasted with Johnson & Johnson’s 1.2% decline in Electrophysiology division revenue for the first quarter of 2025.
Looking to the future, Abbott has reaffirmed its full-year 2025 organic revenue growth guidance of 7.5%-8.5% and its earnings per share (EPS) guidance of $5.05-$5.25. For the second quarter of 2025, the company anticipates an EPS of $1.23-$1.27, which is above Stifel’s estimate of $1.23 and in line with the consensus of $1.25. Notably, the company’s press release did not provide any comments on potential impacts from tariffs.
In summary, Stifel views Abbott’s first quarter results and the confirmation of its full-year guidance as a positive indication amidst a challenging and uncertain global economic environment. The company’s financial health score of "GREAT" on InvestingPro supports this outlook, backed by its 55-year track record of consistent dividend payments and an impressive YTD return of 12.7%.
In other recent news, Abbott Laboratories reported its first-quarter results for fiscal year 2024, surpassing Wall Street’s expectations with strong organic sales growth and adjusted earnings per share (EPS). The company recorded sales of $10.358 billion, a 4% increase, and an 8.3% rise on an organic basis excluding COVID-19 testing revenue. Despite a slight shortfall in reported sales due to a decline in the Diagnostics segment, Abbott’s Devices, Nutrition, and Established Pharmaceuticals segments outperformed expectations. Analysts at JPMorgan maintained an Overweight rating on Abbott with a $135 price target, highlighting the company’s ability to meet financial targets despite challenges. Mizuho (NYSE:MFG) Securities maintained a Neutral rating with a $130 target, noting the revenue shortfall was mitigated by strong performance in Medtech, Nutrition, and Pharmaceuticals divisions. Stifel analysts reiterated a Buy rating and a $135 target after Abbott’s entry into the pulsed-field-ablation market with its Volt system, which received positive feedback at the European Heart Rhythm Association medical meeting. TD Cowen also reaffirmed its Buy rating with a $135 target, citing new product rollouts as key growth drivers for Abbott. Oppenheimer maintained an Outperform rating with a $134 target, emphasizing Abbott’s strong position in the evolving pulse field ablation sector.
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