Abbott (ABT) Faces Profit Headwinds as Pediatric Nutrition Remains Under Pressure

Abbott Laboratories (NYSE:ABT) is included among the Dividend Growth Stocks: 25 Aristocrats.

Courtesy of Abbott Labs

A Reuters study said Abbott Laboratories (NYSE:ABT) warned that its current-quarter nett would travel successful beneath expectations aft the institution besides fell abbreviated of Wall Street’s gross forecasts connected January 22. Pressure has been gathering successful Abbott’s pediatric nutrition business, which has struggled successful caller quarters aft losing a large US authorities proviso declaration past year. At the aforesaid time, higher manufacturing costs for user packaged goods person weighed connected results.

CEO Robert Ford explained that rising accumulation costs pushed prices higher, which yet wounded request arsenic consumers became much delicate to terms increases. “We’ll person a mates quarters present wherever maturation successful nutrition is going to beryllium challenged, and past successful the 2nd half, we’ll instrumentality to affirmative growth,” Ford said.

Performance crossed the institution was broadly weaker than expected. All 4 concern segments missed income estimates. Nutrition income dropped 8.9% twelvemonth implicit twelvemonth to $1.94 billion, portion the diagnostics portion saw income autumn 2.5% to $2.46 billion.

Looking ahead, Abbott said it expects adjusted net of $1.12 to $1.18 per stock successful the archetypal quarter, beneath the expert statement of $1.20, according to information compiled by LSEG. Total gross for the 4th ended December 31 came successful astatine $11.46 billion, abbreviated of the $11.80 cardinal analysts had been expecting. On an adjusted basis, fourth-quarter net were $1.50 per share, matching Wall Street forecasts.

Abbott Laboratories (NYSE:ABT) is simply a planetary healthcare institution focused connected discovering, developing, manufacturing, and selling a wide scope of healthcare products crossed aggregate categories.

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