10:33 AM EDT, 07/17/2025 (MT Newswires) -- Abbott Laboratories ( ABT ) issued a third-quarter earnings outlook below market estimates on Thursday despite recording better-than-expected results for the previous three-month period, while the healthcare company tightened its full-year profit guidance.

Adjusted earnings are set to come in between $1.28 and $1.32 per share for the current quarter, while the consensus on FactSet is for $1.34. Shares of the company fell 6.4% in Thursday trade.

For 2025, Abbott now anticipates adjusted EPS to be in a range of $5.10 to $5.20, compared with the prior guidance of $5.05 to $5.25. The Street is looking for non-GAAP EPS of $5.16. Organic sales are set to rise by 7.5% to 8% for the year, excluding COVID-19 testing-related revenue, reflecting a lower top end from the previous forecast for 8.5% growth.

The company posted adjusted EPS of $1.26 for the June quarter, up from $1.14 the year before and ahead of the average analyst estimate of $1.25. Sales improved 7.4% to $11.14 billion, topping the Street's view for $11.06 billion. Organic revenue, excluding COVID-19 testing, inclined 7.5%.

"Halfway through the year, we delivered high single-digit organic sales growth, double-digit EPS growth, significantly expanded our margin profiles, and continued to advance key programs through our new product pipeline," Chief Executive Robert Ford said in the earnings statement. "We see this momentum carrying into 2026."

Diagnostics sales slipped 1% year over year to $2.17 billion, impacted by annual declines in COVID-19 testing revenue and volume-based procurement programs in China. The nutrition segment advanced 2.9% to $2.21 billion, while the established pharmaceuticals division climbed 6.9% to $1.38 billion.

Revenue in the global medical devices business jumped 13% to $5.37 billion, led by a 20% gain in diabetes care, according to Abbott. The company also recorded double-digit sales gains in rhythm management, electrophysiology, heart failure and structural heart.

Total operating costs and expenses rose to $9.09 billion from $8.71 billion in the prior-year quarter.

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