FMP

FMP

Abbott Laboratories (NYSE: ABT) Q3 Earnings Preview

  • Earnings Per Share (EPS) is expected to be $1.30, marking a 7.4% increase from the previous year.
  • Revenue is projected to reach $11.4 billion, up from $10.63 billion a year ago, indicating strong company performance.
  • Abbott's strategic focus on expanding its diabetes care solutions is seen as a key driver for future growth.

Abbott Laboratories (NYSE: ABT) is a global healthcare company known for its diverse range of products, including medical devices, diagnostics, and nutritional products. The company is set to release its third-quarter earnings on October 15, 2025. Analysts expect earnings per share (EPS) to be $1.30, reflecting a 7.4% increase from the previous year. Revenue is projected to reach $11.4 billion, up from $10.63 billion a year ago.

The anticipated EPS of $1.30 represents an 8.3% year-over-year growth, showcasing Abbott's strong performance. Despite this growth, the stock recently experienced a slight decline of 0.6%, closing at $132.57. This decline may be attributed to the market's high expectations for Abbott's performance, as highlighted by Citigroup analyst Joanne Wuensch, who maintained a Buy rating but adjusted the price target from $157 to $155.

Abbott's strategic focus on expanding its diabetes care solutions is a key driver for future growth. By transitioning from devices to comprehensive, data-driven care solutions, the company aims to strengthen its market position. This strategic move is expected to enhance Abbott's competitive edge and contribute to its long-term success in the healthcare industry.

Financially, Abbott maintains a strong position with a price-to-earnings (P/E) ratio of approximately 16.36 and a price-to-sales ratio of about 5.30. These metrics indicate the market's valuation of Abbott's earnings and revenue. Additionally, the company's debt-to-equity ratio of 0.27 suggests a relatively low level of debt, while a current ratio of 1.82 indicates strong liquidity to cover short-term liabilities.

The consensus earnings estimate for Abbott has been slightly adjusted downward by 0.1% over the past month. This adjustment reflects analysts' reassessment of their initial projections and could influence investor reactions. Empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance, making this a critical factor to watch as Abbott releases its earnings.