Abbott stock dropped Thursday after the health giant lowered its sales outlook for 2025 following a mixed second-quarter report.
For the year, Abbott Laboratories now expects sales to grow 6% to 7.5% organically. That's down from the guidance issued three months ago for 7.5% to 8.5%. Excluding Covid tests, Abbott projects 7.5% to 8% growth, below analysts' call for 8.5%.
But Leerink Partners analyst Mike Kratky remained positive on Abbott stock.
"ABT posted a modest top- and bottom-line beat but slightly lowered its FY25 organic sales growth guidance," he said in a report. "However, we see reasons to be encouraged with its Medtech segment delivering better-than-expected growth with broad-based strength during the quarter."
Still, Abbott stock shed 8.5%, closing at 120.55.
Abbott Stock Makes A Bearish Move
Across all products, Abbott's sales grew 7.4% on a strict, as-reported basis to $11.14 billion. That beat forecasts for $11.06 billion, according to FactSet. Organically, sales grew 6.9%, or 7.5% excluding the impact of Covid tests.
Adjusted earnings came in at $1.26 per share, up 10.5% and a penny ahead of forecasts.
Notably, sales of medical devices grew more than 12% organically and topped expectations, Evercore ISI analyst Vijay Kumar said in a report. The standouts included electrophysiology — a means of treating abnormal heart rhythm — diabetes, rhythm management, heart failure and structural heart.
Nutrition sales were light while revenue from the diagnostics segment was both short of estimates and declined. Sales of established pharmaceuticals, which Abbott sells abroad, grew almost 8% organically and came in narrowly ahead of forecasts, Kumar said.
He has an outperform rating on Abbott stock.
Shares recently undercut their 50-day moving average. On Thursday, Abbott stock also tumbled below its 200-day line, according to MarketSurge.
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