Abbott Shares Climb Despite Mixed Quarter: What to Watch Before Buying More

Abbott Laboratories (NYSE: ABT) reported its fourth-quarter and full-year 2024 results on January 22, 2025, with shares climbing despite a mixed quarter. The company's stock price rose 1.7% to $118.75, driven by strong organic sales growth and earnings growth. However, investors should be cautious before buying more shares, as there are still some concerns to consider.



Strong Performance in Medical Devices and Diagnostics
Abbott's medical devices segment reported sales growth of roughly 14% in the fourth quarter, driven by growth in both the U.S. and internationally. The diagnostics segment also performed well, with sales increasing 8.8% on an organic basis, excluding COVID-19 testing-related sales. The company's robust pipeline, including new products like the Aveir single-chamber VR pacemaker system, Navitor transcatheter aortic valve implantation system, and TriClip transcatheter edge-to-edge repair device, is expected to drive future growth.

Challenges and Risks to Consider
While Abbott's performance was strong overall, there are still some challenges and risks to consider before buying more shares:

1. COVID-19 Testing Sales: Abbott's COVID-19 testing sales declined in the fourth quarter due to a year-over-year decline in testing-related sales. Although the company expects continued demand for rapid tests, investors should monitor the impact of new variants and testing trends on Abbott's COVID-19 testing business.
2. Regulatory and Reimbursement Risks: Changes in regulatory environments and reimbursement policies can impact Abbott's product sales and profitability. Investors should monitor regulatory developments and reimbursement policies in key markets to assess potential impacts on Abbott's business.
3. Competition: Abbott faces competition in various segments, such as medical devices, diagnostics, and pharmaceuticals. Investors should track Abbott's competitors' performance and product pipelines to understand the competitive landscape better.
4. Geopolitical Risks: Geopolitical instability and trade disputes can disrupt Abbott's global supply chain and impact sales in certain regions. Investors should monitor geopolitical developments and assess their potential impacts on Abbott's global operations.



Conclusion
Abbott Laboratories reported a strong quarter despite a mixed performance in its COVID-19 testing segment. The company's medical devices and diagnostics segments drove organic sales growth, and its robust pipeline is expected to drive future growth. However, investors should be cautious before buying more shares, as there are still some challenges and risks to consider, such as regulatory and reimbursement risks, competition, and geopolitical risks. By monitoring these factors and staying informed about Abbott's progress, investors can make more informed decisions about whether to buy more shares or hold off for now.