Abbott Laboratories (NYSE:ABT) stock rose 0.67% (As on April 17, 11:25:40 AM UTC-4, Source: Google Finance) after the company maintained its annual profit forecast and said it expected the U.S. tariffs to hit earnings by a “few hundred million dollars”. The company has also announced $500 million in new investments in manufacturing and research projects in Illinois and Texas. The projects, expected to go live by the end of the year, will help Abbott mitigate any likely impact from President Donald Trump’s aggressive levies on China, a key source of raw materials for the pharmaceutical and medical device sectors.

Moreover, sales of its diabetes care products, which includes its popular FreeStyle Libre continuous glucose monitor, jumped by 16% year-over-year to $1.83 billion. The solid returns, which came even as Abbott has moved to address supply issues for the Libre offerings, pushed its medical device sales up to $4.9 billion. However, the uptick was slightly offset by a 7.2% drop in diagnostics sales to $2.05 billion. Analysts had anticipated the unit would register sales of $2.19 billion. Medical Devices sales increased almost 13% on an organic basis (9.9% reported), marking yet another quarter of double-digit growth. That performance was led by a nearly 20% organic increase in Diabetes Care sales (16.5% reported), with particularly strong U.S. growth of 27%. Medical Devices results were also boosted by strong growth in Structural Heart, Heart Failure and Electrophysiology. Established Pharmaceuticals sales grew about 8% on an organic basis (2.7% reported), with balanced performance across multiple markets and products. Nutrition sales increased almost 7% on an organic basis (3.8% reported), led by nearly 9% organic growth in Adult Nutrition (4.4% reported), which was driven by strong sales of Ensure, Abbott’s market-leading complete and balanced nutrition brand, and Glucerna.

ABT in the first quarter of FY25 has reported the adjusted earnings per share of $1.09, beating the analysts’ estimates for the adjusted earnings per share of $1.07. The company had reported the adjusted revenue growth of 4 percent to $10.36 billion in the first quarter of FY25, missing the analysts’ estimates for revenue of $10.4 billion.

Abbott reaffirmed its 2025 profit forecast of $5.05 to $5.25 per share, even as its first-quarter adjusted earnings of $1.09 per share beat analysts’ estimates by 2 cents, according to data compiled by LSEG. The organic sales growth seen in the range of 7.5% to 8.5%. Current-quarter adjusted diluted earnings per share are tipped to be $1.23 to $1.27.