Is ABT's earnings growth sustainable in 2025?

**Abbott Laboratories' (ABT) earnings growth appears to be sustainable in 2025**, based on several key factors:

1. **Consistent Financial Performance**: ABT has demonstrated robust financial performance, with a noticeable increase in sales and earnings per share (EPS) in the fourth quarter of 2024. The company reported a net income growth rate of 478.98% and a revenue growth rate of 7.16% in the same period.

|code|Ticker|Name|Date|Net Income YoY|market_code|
|---|---|---|---|---|---|
|ABT|ABT.N|Abbott Laboratories|2024 Q1|-7.0561456752655545|169|
|ABT|ABT.N|Abbott Laboratories|2024 Q2|-5.3090909090909095|169|
|ABT|ABT.N|Abbott Laboratories|2024 Q3|14.623955431754876|169|
|ABT|ABT.N|Abbott Laboratories|2024 Q4|478.98368883312423|169|

|code|Ticker|Name|Date|Total Revenue YoY|market_code|
|---|---|---|---|---|---|
|ABT|ABT.N|Abbott Laboratories|2024 Q1|2.2263260490407304|169|
|ABT|ABT.N|Abbott Laboratories|2024 Q2|3.998797354179194|169|
|ABT|ABT.N|Abbott Laboratories|2024 Q3|4.850635906536527|169|
|ABT|ABT.N|Abbott Laboratories|2024 Q4|7.1575041499853524|169|

|code|Ticker|Name|Date|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|
|ABT|ABT.N|Abbott Laboratories|2024 Q1|-6.666666666666672|169|
|ABT|ABT.N|Abbott Laboratories|2024 Q2|-5.128205128205133|169|
|ABT|ABT.N|Abbott Laboratories|2024 Q3|14.634146341463413|169|
|ABT|ABT.N|Abbott Laboratories|2024 Q4|479.120879120879|169|

2. **Diverse Product Portfolio and Market Position**: ABT's diversified product portfolio, which includes cardiovascular and diabetes devices, nutritional products, diagnostic equipment, and branded generic drugs, has contributed to its resilience in the face of market fluctuations. The company's global reach, with roughly 60% of sales coming from international markets, also provides a buffer against potential domestic market challenges.
3. **Innovation and Strategic Developments**: ABT's commitment to innovation is evident in its recent FDA approval for an Investigational Device Exemption for its Coronary Intravascular Lithotripsy (IVL) System. The company's focus on strategic product development, such as the launch of a leadless pacemaker system, is likely to support continued growth in 2025.
4. **Dividend History and Shareholder Returns**: ABT has a history of consistent dividend growth, with over 50 consecutive years of increases as of December 2024. This track record suggests a strong financial stability and a commitment to returning value to shareholders, which can be a positive indicator for earnings sustainability.
5. **Market Outlook and Growth Projections**: Despite broader market instability, ABT's advancements have contributed to its 10% share price rise over the last quarter. The company is guiding for more growth in 2025, with EPS of up to $5.25 and organic sales growth of up to 8.5%. These projections, along with the confidence of Big Money investors, suggest a positive outlook for ABT's earnings in 2025.
6. **Industry Position and Growth Potential**: The healthcare sector, including medical equipment and supplies, is projected to grow significantly, with the hospital equipment and supplies market expected to reach $339.2 billion by 2033. ABT's position within this industry, coupled with its strategic growth initiatives, positions it well for potential earnings growth in 2025.

In conclusion, while past performance is not always indicative of future results, the combination of ABT's consistent financial growth, strategic market positioning, and innovative product developments suggest that the company's earnings growth in 2025 is likely to be sustainable.