Abbott Laboratories Looks Ahead to 2025 with Optimism
Strong Demand for Glucose Monitors to Offset Global Challenges
Abbott Laboratories has announced its forecast for 2025, with profits expected to meet Wall Street estimates. The company’s optimism is fueled by the growing demand for its glucose monitors and new device launches, which are expected to counterbalance the negative impact of a stronger dollar and weakness in China.
Glucose Monitoring Products Drive Sales
The company’s continuous glucose monitor, FreeStyle Libre, has been a significant contributor to its sales growth. Despite facing supply issues in the past, Abbott is confident that it will meet the demand mismatch as it ramps up production at one of its manufacturing sites.
Currency Fluctuations and China Procurement Program Pose Challenges
CEO Robert Ford highlighted the potential impact of a stronger dollar on the company’s sales, estimating a 2.5% hit in 2025, with a more significant impact of 3.5% in the first quarter. Additionally, the company expects a sales decline due to a procurement program in China, where medical devices are purchased in bulk at a discounted rate.
Fourth-Quarter Sales: A Mixed Bag
Abbott’s medical devices unit exceeded estimates in the fourth quarter, driven by the strong performance of its glucose-monitoring products. However, its nutrition unit fell short of expectations. Overall, the company reported $10.97 billion in sales, slightly below estimates of $11.01 billion.
2025 Profit Outlook
Abbott expects an adjusted profit of $5.05 to $5.25 per share for 2025, in line with analysts’ average profit expectation of $5.16. The company reported an adjusted quarterly profit of $1.34 per share, meeting analysts’ average expectations. For the first quarter, Abbott expects an adjusted profit of $1.05 to $1.09 per share, below analysts’ average estimate of $1.11.
Shares React Positively
Despite the mixed quarterly results, Abbott’s shares rose 1.3%, reversing early declines. Analysts remain optimistic about the company’s potential for upside, citing its conservative approach to forecasting and the possibility of improved foreign exchange rates.
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