MW Abbott Labs sees demand for diabetes products jump, and the stock surges

By James Rogers

Abbott extends its long streak of earnings beats, and the stock surges to lead the S&P 500 index's gainers

Abbott Laboratories saw a big jump in demand for its diabetes products in the first quarter, which helped the medical-device company extend its long streak of earnings beats and propelled its stock to a healthy gain Wednesday.

Sales of diabetes-care products for the quarter to March 31 surged 16.5% from a year ago to $1.83 billion, boosted by an 18.3% jump in sales of continuous glucose monitors. That was part of the 9.9% growth in sales of medical devices to $4.9 billion, which topped the average analyst estimate compiled by FactSet of $4.86 billion.

That growth comes amid data showing that global diabetes rates are surging. The number of adults diagnosed with diabetes stands at more than 800 million, a figure that has more than quadrupled since 1990, according to data reported in the Lancet last year. Citing the data, the World Health Organization has called for urgent action and launched a global monitoring framework on diabetes.

Last year the Centers for Disease Control and Prevention also warned that diabetes in young people is on the rise.

The stock $(ABT)$ surged 4.5% in morning trading, enough to pace the S&P 500 index's SPX gainers.

The Abbott Park, Ill.-based company also reported first-quarter net earnings that rose to $1.33 billion, or 76 cents a share, from $1.23 billion, or 70 cents a share, in the same period a year ago.

Excluding nonrecurring items, adjusted earnings per share of $1.09 came in above the FactSet consensus of $1.07. That was at least the 21st straight quarter that EPS beat expectations, based on available FactSet data going back to the first quarter of 2020.

Overall sales rose 4% to $10.36 billion, but that came up just shy of the FactSet consensus of $10.41 billion. That was the second straight quarterly sales miss, following a 14-quarter streak of beats.

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Sales in Abbott's nutrition business were $2.146 billion, a 3.8% increase over the prior year's quarter. Within adult nutrition, sales increased 4.4%, led by growth in the company's Ensure brand and its Glucerna products for people with diabetes.

Diagnostics sales were $2.054 billion, down 7.2% year over year. The company said that diagnostics sales were affected by a year-over-year decline in sales related to COVID-19 testing and by volume-based procurement programs in China.

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The company also reaffirmed its previously provided full-year financial guidance. Abbott Labs expects full-year 2025 organic sales growth in the range of 7.5% to 8.5% and full-year adjusted earnings of $5.05 to $5.25 a share.

For the second quarter, Abbott Labs expects adjusted earnings of $1.23 to $1.27 a share. Analysts surveyed by FactSet are looking for second-quarter earnings of $1.25 a share.

Abbott Labs shares have run up 16.6% this year, while the S&P 500 has dropped 9.2%.

-James Rogers

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April 16, 2025 10:01 ET (14:01 GMT)

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