Abbott to Report Q3 Earnings: Medical Devices Arm in Focus

Abbott Laboratories ABT is slated to report third-quarter 2025 results on Oct. 15, before the opening bell.The company delivered adjusted earnings per share (EPS) of $1.26 in the last quarter, which surpassed the Zacks Consensus Estimate by 0.8%. Its earnings exceeded the Zacks Consensus Estimate in each of the trailing four occasions, the average beat being 0.88%. ABT Q3 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $11.42 billion, suggesting a 7.4% rise from the year-ago reported figure.The Zacks Consensus Estimate for EPS is pinned at $1.30, indicating a 7.4% improvement from the prior-year registered figure.Estimate Revision Trend Ahead of EarningsEstimates for Q3 earnings have remained unchanged at $1.30 per share in the past 30 days.Let's look at how things might have progressed for the MedTech major prior to the announcement.Diagnostics: Similar to the previous quarters, we expect the segment’s revenue growth to have been impacted by the year-over-year decline in COVID-19 testing revenues and the impact of volume-based procurement programs in China.In the core lab business (excluding China), continued global demand for routine diagnostic testing is likely to have helped sustain growth in the third quarter. Going by the Zacks Consensus Estimate, Diagnostics’ top-line numbers are likely to decrease 4.4% year over year.Established Pharmaceuticals (EPD): Abbott’s EPD business is likely to have continued its strong performance across its 15 key markets, including India, China, and other countries in Asia, Latin America and the Middle East. In the last reported quarter, Abbott achieved a milestone with quarterly sales surpassing $1 billion from these markets. We expect this trend to have persisted in the to-be-reported quarter as well. In addition, the company recently identified biosimilars as a new strategic growth pillar for EPD. Biosimilars currently represent the highest growth segment in the branded generic pharmaceutical market. Abbott recently achieved several milestones, advancing its portfolio of biosimilars, which are expected to have positively contributed to the company’s third-quarter top line.The Zacks Consensus Estimate for the segment’s third-quarter revenues indicates a year-over-year increase of 9%.Medical Devices: In the third quarter of 2025, the business sales are likely to have gained from the Diabetes Care division. This is expected to have been driven by the increasing adoption of continuous glucose monitor (CGM) systems. The company’s first-of-its-kind agreement to integrate Libre CGM data into Epic’s EHR systems in the United States is also expected to have supported top-line growth.The electrophysiology portfolio is likely to have delivered robust performance across key regions and product categories, aided by the launch of the Volt PFA catheter and early completion of enrollment in the TactiFlex Duo U.S. pivotal trial.Within Structural Heart, the quarterly growth is expected from Abbott’s portfolio of surgical valves, structural interventions and transcatheter repair and replacement products. In September, the company earned CE Mark for expanded use of the Navitor transcatheter aortic valve implantation system. Also, in the previous quarter, Abbotts’s Tendyne transcatheter mitral valve replacement system received FDA approval. These developments are likely to have bolstered the company’s third-quarter top line. Abbott Laboratories Price and EPS Surprise Abbott Laboratories price-eps-surprise | Abbott Laboratories QuoteWithin the Rhythm Management arm, Abbott’s leadless AVEIR pacemaker continues to gain traction, supported by favorable clinical data released in April.In Heart Failure, growth is likely to have been driven by its portfolio of heart assist devices. Meanwhile, Vascular arm’s growth could be attributed to Esprit, the company’s below-the-knee resorbable stent. Furthermore, the growth in the Neuromodulation division might have been led by the strong performance of the Eterna rechargeable spinal cord stimulation device. According to the Zacks Consensus Estimate, the Medical device segment’s third-quarter revenues are expected to improve 13.3% year over year.Nutrition: In this division, the robust sales of adult nutrition brands, Ensure and Glucerna, are likely to have contributed to its third-quarter top-line performance. The Zacks Consensus Estimate indicates a 6.3% year-over-year improvement in the segment’s revenues.What Our Model SuggestsPer our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates. This is not the case here, as you can see below:Earnings ESP: Abbott has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #3.Stocks Worth a LookHere are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle:Exact Sciences EXAS has an Earnings ESP of +32.65% and a Zacks Rank #1 at present. The company is slated to release third-quarter 2025 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 329.9%. The Zacks Consensus Estimate for fiscal third-quarter EPS implies a year-over-year increase of 147.6%.Edwards Lifesciences EW has an Earnings ESP of +2.18% and a Zacks Rank #2 at present. The company is expected to release third-quarter 2025 results soon.EW’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.5%. Per the Zacks Consensus Estimate, the company’s third-quarter EPS may decrease 11.9% from the year-ago quarter’s figure.Incyte INCY has an Earnings ESP of +11.90% and a Zacks Rank #2 at present. The company is expected to release third-quarter 2025 results soon.INCY’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 4.2%. The Zacks Consensus Estimate for third-quarter EPS suggests a year-over-year improvement of 54.2%.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report Edwards Lifesciences Corporation (EW): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report Exact Sciences Corporation (EXAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks