Abbott Laboratories saw a 3% drop in shares after a less-than-stellar quarter with revenue of $11.37 billion, missing estimates. Adjusted EPS rose to $1.30, in line with expectations. Concerns about exposure to China’s health-care sector were raised. Ongoing litigation over specialized infant formula continues. Management tightened full-year EPS outlook to $5.12 to $5.18. Sales in Medical Devices grew 12.5%, while Diagnostics sales fell 7.8%. Nutrition sales missed expectations but grew 4%. Investors are debating whether to hold Abbott shares or consider Danaher. Abbott is a high-quality medtech company with multiple challenges but has seen YTD stock gains. The company is targeting adjusted EPS in the $1.47 to $1.53 range for Q4. Segment highlights include growth in Medical Devices and Established Pharmaceuticals, while Diagnostics and Nutrition sales fell short. China remains a headwind for Abbott due to challenging market conditions. Adult nutrition sales drove growth, led by international markets. Investors are considering selling Abbott into strength and focusing on other opportunities. Management maintains optimism about long-term growth opportunities.

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