Abbott reports $11.37bn third-quarter revenue

Abbott Vascular in Clonmel, Co Tipperary. Abbott reported revenue of $11.37bn (€9.77bn) for the quarter ended September 30. Picture: Dan Linehan

Abbott missed analysts' third-quarter revenue estimates on Wednesday, as weakness in its diagnostics and nutrition businesses outweighed robust demand for its medical devices.

Abbott employs about 6,000 people across 10 sites in Ireland, in Clonmel, Cavan, Donegal, Longford, Galway, Sligo, Kilkenny, and two in Dublin. Abbott's nutrition facility in Cootehill in Co Cavan processes 500,000 litres of milk every day. 

The company had flagged volatility in the global business as it navigates a sharp decline in covid testing demand, new US tariffs, and a freeze on foreign aid by US president Donald Trump's administration.

The diagnostics division is also facing pricing pressure from China's procurement program that buys medical devices in bulk at steep discounts.

"Our growth rate in China is around 5% to 7% if you take out the diagnostic piece and I think that's probably not a bad place to be in," chief executive Robert Ford told analysts in a conference call.

RBC Capital Markets analysts said Abbott's quarterly results were "mixed, but in line with the company's prior communication", calling the current headwinds "transitory".

Total revenue of $11.37bn (€9.77bn) for the quarter ended September 30 slightly missed analysts' average estimate of $11.40bn (€9.8bn), according to data compiled by LSEG.

Abbott shares slipped 2% in early trade. They are up 17% this year, as of last close.

The company's medical devices segment, which sells heart devices and continuous glucose monitors, trumped estimates but the nutrition business fell short due to weakness in its paediatric division that sells baby formulas.

In the US, the paediatric nutrition business has been under the scanner over lawsuits alleging its specialised formula for premature infants caused babies to develop a dangerous bowel disease called necrotizing enterocolitis.

Mr Ford declined to comment on the litigation and attributed the weakness in its nutrition business to the loss of market share to competition.

Abbott, which reiterated a hit of under $200m (€171m) from the current tariffs this year, said it would not expect a meaningful impact from the sweeping probes into medical device imports launched by the Trump administration.

On an adjusted basis, Abbott reported third-quarter profit per share of $1.30, in line with analysts' average estimate. The company said it now expects annual adjusted profit to be between $5.12 and $5.18 per share, compared with its previous range of $5.10 to $5.20.