Strong Device Demand Offsets China and Currency Challenges
Abbott Laboratories (ABT) on Wednesday projected its 2025 profit to align with Wall Street estimates, citing strong demand for its medical devices, particularly its glucose monitors, as a key growth driver.
Boost From FreeStyle Libre and New Device Launches
The company has benefited from high demand for its continuous glucose monitor, FreeStyle Libre. Abbott had previously faced supply chain challenges for these devices but expects to meet demand as a new manufacturing site becomes operational.
Impact of Strong Dollar and China’s Procurement Program
CEO Robert Ford noted that Abbott anticipates a 2.5% sales hit in 2025 due to a stronger dollar, with a 3.5% impact in the first quarter alone. The company is also bracing for financial pressure from China’s medical device bulk procurement program, which mandates deep discounts.
Q4 Performance and Stock Reaction
Abbott’s fourth-quarter sales reached $10.97 billion, slightly below the estimated $11.01 billion. The medical devices unit outperformed, driven by glucose-monitoring products, while smaller divisions like nutrition fell short of expectations.
The company reported an adjusted quarterly profit of $1.34 per share, in line with analyst forecasts. For 2025, Abbott projects an adjusted profit range of $5.05 to $5.25 per share, compared to analysts’ consensus of $5.16.
Market Reaction and Analyst Insights
Despite missing first-quarter profit estimates—projecting $1.05 to $1.09 per share versus an expected $1.11—Abbott’s stock rose 1.3% in afternoon trading.
Evercore ISI analyst Vijay Kumar noted that Abbott typically starts the year with a conservative outlook and could see upside potential if foreign exchange rates improve.