Abbott Labs Misses Q4 Sales Estimates: Nutrition and Diagnostics Units Weigh on Performance

Abbott Laboratories (ABT) reported weaker-than-expected fourth quarter sales, with the company's nutrition and diagnostics units contributing to the shortfall. Despite the miss, Abbott's medical device segment performed well, and the company maintained a positive outlook for 2025. Here's a closer look at Abbott's Q4 results and the factors driving its performance.

Abbott's total revenue for the quarter was $10.97 billion, up 7.2% year-over-year but slightly below the consensus estimate of $11.03 billion. Adjusted diluted earnings per share (EPS) came in at $1.34, in line with expectations and up 12.6% year-over-year (Source: Abbott Laboratories Q4 Earnings Report, 2024).

Weakness in Nutrition and Diagnostics Units

The nutrition unit's sales increased by 4.5% to $2.07 billion, with organic growth of 7.1%. However, this growth was lower than expected, particularly in the Pediatric Nutrition segment, where global sales increased by only 1.5% (+2.5%). The diagnostics unit also fell short of expectations, with sales increasing by 4.3% (+6.1%) excluding COVID-19 testing-related sales. The growth was driven by strong demand for Abbott's portfolio of respiratory disease tests, but overall growth was lower than anticipated (Source: Abbott Laboratories Q4 Earnings Report, 2024).

Strong Medical Device Sales and Outlook

Abbott's medical device segment was a bright spot, with sales increasing 13.7% to $5.05 billion, driven by double-digit growth in the U.S. and internationally. Several products contributed to this growth, including FreeStyle Libre, Navitor, TriClip, Amplatzer Amulet, and AVEIR. Notably, sales of Abbott's diabetes devices surged 20.6%, with continuous glucose monitors (CGMs) advancing 22.8% (Source: Abbott Laboratories Q4 Earnings Report, 2024).

Despite the miss in nutrition and diagnostics sales, Abbott maintained a positive outlook for 2025. The company expects adjusted EPS of $5.05 to $5.25 and organic sales growth of 7.5% to 8.5%. Analysts have a consensus EPS estimate of $5.16 for 2025 (Source: Abbott Laboratories Q4 Earnings Report, 2024).



In conclusion, Abbott Labs missed Q4 sales estimates due to weakness in its nutrition and diagnostics units. However, the company's strong medical device sales and positive outlook for 2025 indicate that Abbott remains well-positioned for future growth. Investors should monitor Abbott's progress in addressing the challenges in its nutrition and diagnostics units while keeping an eye on the company's medical device segment and overall growth prospects.