Abbott's Q1 Earnings Coming Up, Medical Devices Arm in Focus

Abbott Laboratories ABT is slated to report first-quarter 2025 results on April 16, before the opening bell.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company delivered adjusted earnings per share (EPS) of $1.34 in the last reported quarter. The figure was in line with the Zacks Consensus Estimate. ABT’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 1.64%.

Q1 Estimates

The Zacks Consensus Estimate for ABT’s first-quarter 2025 revenues is pegged at $10.42 billion, suggesting a 4.5% rise from the year-ago reported figure.

The Zacks Consensus Estimate for first-quarter 2025 EPS is pinned at $1.07, indicating a 9.2% improvement from the year-ago reported number. 

Estimate Revision Trend Ahead of Earnings

Estimates for Abbott’s first-quarter earnings have remained unchanged at $1.07 per share in the past 60 days.

Let's briefly look at how things might have progressed for the MedTech major this reporting cycle.

Diagnostics: The Diagnostics arm is expected to have been driven by the widespread adoption of its top-tier systems and high testing demand across a variety of settings, including hospitals, laboratories, physician offices, retail pharmacies and blood screening facilities. In the core lab business, continued global demand for routine diagnostic testing and constant adoption of the company’s market-leading immunoassay, clinical chemistry, hematology and blood screening testing panels, including recent large account wins, are likely to have helped sustain growth in the first quarter. 

The rapid diagnostics business is expected to have gained from the continued expansion of test menus and capitalized on the growing demand for respiratory tests that can be performed at home or in more traditional healthcare settings.

Meanwhile, the demand for COVID-19 testing has nosedived in the past several quarters and marred the segment’s growth. We expect to see another year-over-year decline in testing revenues this time. 

However, the magnitude of this decline might have reduced because Diagnostic revenues were already soft and on a downward trend (in May 2023, WHO declared an end to COVID-19 as a public health emergency) during the fourth quarter of 2023.

Going by the Zacks Consensus Estimate, Diagnostics revenues are likely to have increased 1% year over year in the first quarter of 2025. 

Abbott Laboratories Price and EPS Surprise

Abbott Laboratories price-eps-surprise | Abbott Laboratories Quote

Established Pharmaceuticals (EPD): Abbott’s EPD business benefits from a broad portfolio of products that are designed to meet the local needs of fast-growing emerging markets. In the first quarter of 2025, the division is likely to have continued its impressive streak of strong performance across several regions and therapeutic areas, including gastroenterology, women's health, central nervous system and pain management. Growth is expected to have been driven by favorable demographic trends, including a growing population, an expanding middle class and an increasing focus on gaining access to healthcare.

In addition, the company recently identified biosimilars as a new strategic growth pillar for EPD. Biosimilars currently represent the highest growth segment in the branded generic pharmaceutical market.  Abbott achieved several milestones in recent times in terms of advancing its portfolio of biosimilars, which are expected to have positively contributed to the company’s first-quarter top line.

The Zacks Consensus Estimate for the segment’s revenues indicates a year-over-year increase of 0.5% in the first quarter of 2025.

Medical Devices: The segment has been a standout performer for the company, steadily growing over the past several quarters and making a notable impact on the margin performance. In the first quarter of 2025, the business’s sales are likely to have been driven by the Diabetes Care division. This was mainly due to the continuous glucose monitor (CGM) systems, which alone surged 22% in 2024. The company is also expected to have benefited from its over-the-counter glucose monitoring sensor — Lingo. 

The electrophysiology portfolio is likely to have delivered robust performance across key regions and product categories, particularly in the ablation catheters and cardiac mapping areas. Within Structural Heart, we expect the company to report robust performance, led by the market-leading portfolio of surgical valves, structural interventions and transcatheter repair and replacement products. Abbott recently announced positive TRILUMINATE Pivotal trial data for the company’s tricuspid repair device — TriClip. We expect the recent development to have contributed to the business’s first-quarter sales.

Within the Rhythm Management arm, Abbott’s new leadless pacemaker, AVEIR, and the company’s newest implantable cardiac monitor, Assert, are making strides. Additionally, in March, the company achieved early CE Mark approval for the Volt PFA system to treat patients battling atrial fibrillation. Furthermore, the growth in the Neuromodulation division can be attributed to the international sales of Eterna, a rechargeable neurostimulation device for pain management. All these developments are anticipated to have greatly boosted Abbott’s top line in the quarter under review. 

According to the Zacks Consensus Estimate, the Medical device segment’s revenues are expected to improve 9.8% year over year in the first quarter.

Nutrition: In this division, the robust sales of adult nutrition brands like Ensure and Glucerna are likely to have contributed to the business’s first-quarter top line. Abbott achieved a milestone in 2024, with annual sales of the Ensure brand surpassing $3.00 billion. This development is anticipated to have greatly boosted Abbott’s top line in the quarter under review. We also expect solid growth across the international portfolio of infant formula and toddler brands in the quarter.

The Zacks Consensus Estimate indicates a 2.5% year-over-year improvement in the segment’s first-quarter revenues.

What Our Model Suggests

Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. This is exactly the case here, as you can see below:

Earnings ESP: Abbott has an Earnings ESP of +0.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2.

Other Stocks Worth a Look

Here are some medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this reporting cycle.

Masimo MASI has an Earnings ESP of +0.64% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The company is expected to release first-quarter 2025 results soon. The Zacks Consensus Estimate for EPS implies a surge of 20% from the year-ago quarter’s reported figure.

Atara Biotherapeutics ATRA has an Earnings ESP of +41.69% and a Zacks Rank #2 at present. The company is expected to release first-quarter 2025 results soon. ATRA has an EPS growth estimate of 47.8% for 2025, much higher than the industry’s 12.7%.

Agenus AGEN has an Earnings ESP of +12.04% and a Zacks Rank #2 at present. The company is likely to release first-quarter 2025 results soon. The Zacks Consensus Estimate for EPS implies a surge of 39.3% from the year-ago quarter’s reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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