Abbott Laboratories (NYSE:ABT) reported a profit beat for the first quarter driven by growth in its medical devices and diabetes care segments, as revenue fell short of estimates.
The healthcare company beat earnings estimates by $0.02 with earnings per share (EPS) of $1.09 as revenue of $10.36 billion missed expectations of $10.41 billion.
Medical devices sales rose 9.9% year-over-year to $4.9 billion, reflecting robust demand across categories such as rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation, and especially diabetes care. Diabetes care sales grew 16% to $1.83 billion, and nutrition sales were up 3.8% at $2.15 billion.
Diagnostic sales declined year-over-year due to lower COVID-19 testing revenues.
The company reaffirmed its 2025 guidance. It projects full-year 2025 adjusted EPS of $5.05 to $5.25, indicating continued growth, with organic sales expected to increase between 7.5% and 8.5%.
"Once again, Abbott's diversified business model delivered top-tier sales and EPS growth," Abbott Labs CEO Robert Ford said in a statement.
"It is this diversification and execution that allows Abbott to navigate through periods of uncertainty and continually deliver sustainable growth."
Shares of Abbott Laboratories moved higher following the report, up 5.2% at about $133.