Abbott Laboratories (NYSE:ABT) stock fell 0.17% (As on October 16, 11:23:56 AM UTC-4, Source: Google Finance) after the company missed analysts third-quarter revenue estimates, as weakness in its diagnostics and nutrition businesses outweighed robust demand for its medical devices. The company had flagged volatility in the businesses as it navigates a sharp decline in COVID-19 testing demand, new U.S. tariffs, and a freeze on foreign aid by 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.

Moreover, in July, Abbott announced it received regulatory approval in Japan for TriClip, a first of-its-kind, minimally invasive treatment option for patients with tricuspid regurgitation, or a leaky tricuspid heart valve. In August, Abbott announced it received CE Mark for an expanded indication for the company’s Navitor® transcatheter aortic valve implantation (TAVI) system to treat people with symptomatic, severe aortic stenosis who are at low or intermediate risk for open-heart surgery. In August, at the European Society of Cardiology (ESC) Congress, new treatment guidelines were issued that provide additional support for the use of MitraClip® and TriClip in treating valvular heart disease. These new guidelines were backed by evidence from multiple clinical studies.

ABT in the third quarter of FY25 has reported the adjusted earnings per share of $1.30, which is inline with the analysts’ estimates for the adjusted earnings per share of $1.30. The company had reported the adjusted revenue growth of 6.9 percent to $11.37 billion in the third quarter of FY25, slightly missing the analysts’ estimates for revenue of $11.40 billion, according to data compiled by LSEG. Year-to-date sales increased 6.1 percent on a reported basis, 6.4 percent on an organic basis, or 7.7 percent when excluding COVID-19 testing-related sales. Worldwide Nutrition sales increased 4.2 percent on a reported basis and 4.0 percent on an organic basis in the third quarter. Global Diagnostics sales decreased 6.6 percent on a reported basis, decreased 7.8 percent on an organic basis, and increased 0.4 percent when excluding COVID-19 testing-related sales. Established Pharmaceuticals sales increased 7.5 percent on a reported basis and 7.1 percent on an organic basis in the third quarter. Worldwide Medical Devices sales increased 14.8 percent on a reported basis and 12.5 percent on an organic basis in the third quarter.

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.