Abbott Forecasts 4.6% EPS, 6.4% Revenue Growth Led by Devices
Abbott is set to report Q1 EPS of $1.14 on $11.00 billion revenue, reflecting 4.6% and 6.4% year-to-year growth. Robust gains in Medical Devices and Established Pharmaceuticals contrast with Nutrition weakness following the Exact Sciences acquisition and a $53 million legal settlement.
1. Q1 Earnings Forecast
Abbott is expected to report first-quarter EPS of $1.14 and revenue of $11.00 billion, representing respective increases of 4.6% and 6.4% from the year-earlier period. These figures set a baseline for assessing the company’s performance across its core segments.
2. Segment Performance Variances
Growth in the Medical Devices unit and the Established Pharmaceutical Division is outpacing expectations, driven by strong procedural demand and legacy product sales. Conversely, the Nutrition segment is under pressure due to softer consumer trends and pricing headwinds.
3. Acquisition and Legal Settlement
The recent completion of the Exact Sciences acquisition on March 23 expands Abbott’s diagnostics footprint, while a $53 million legal settlement related to infant formula adds a one-time charge that will weigh on Q1 results.
4. Financial Health and Analyst Views
Analysts maintain confidence with a raised price target of $144 and highlight a P/E ratio of 27.1, a debt-to-equity ratio of 0.29, and a current ratio of 1.58 as indicators of sound balance-sheet strength.