Abbott Laboratories Q4 Profit Meets Expectations Amid Outlook Caution

Abbott Laboratories reports a positive Q4 profit but issues a cautious outlook. Their Q1 EPS projections fall below analyst expectations, stirring concerns among investors.

Date: 22-01-2025

AI Rating: 5

Q4 Profit and Investor Concerns: Abbott Laboratories reported a robust fourth-quarter profit, with earnings per share of $5.27, significantly up from $0.91 per share year-over-year. However, the company provided a first-quarter guidance that was below analyst expectations, projecting adjusted earnings per share between $1.05 and $1.09, while analysts anticipated $1.12 per share. This disparity between projections may lead to a negative reaction in the stock market.

Fiscal 2025 Outlook: Looking ahead, Abbott aims for adjusted earnings per share of $5.05 to $5.25 for fiscal 2025, reflecting a double-digit growth from $4.67 the previous year. The guidance is slightly below the $5.16 expected by analysts, which could instill caution among investors despite the promising growth forecast.

Operating Margin and Sales Growth: For fiscal 2024, Abbott reported sales of $42.0 billion, with a notable organic sales growth of 9.6%. The full-year adjusted operating margin is projected between 23.5% and 24.0%, a positive increase compared to the prior year, showing strong cost management and operational efficiency.

Revenue Details: The company’s revenue for Q4 rose 7.2%, totaling $10.974 billion, although slightly short of the $11.03 billion expected by the market. The adjusted earnings for the period met expectations at $1.34 per share, indicating stable operational performance.

Overall, while Abbott Laboratories showed strong historical performance, the lower-than-expected outlook for Q1 and fiscal 2025 might dampen investor sentiment and affect stock prices in the short term.

Stocks: ABT