Abbott raises annual profit forecast on strong medical device sales
Abbott Laboratories (ABT.N) has raised its annual profit forecast and exceeded Wall Street estimates for its second-quarter earnings, driven by robust sales of its cardiac and diabetes care devices.
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The medical devices segment saw a 10.2% increase in sales, reaching $4.73 billion, surpassing analysts' average estimate of $4.66 billion.
The company's cardiac and diabetes care devices have seen a surge in demand as more individuals, particularly older adults, are undergoing surgeries that were postponed during the pandemic.
The FreeStyle Libre glucose monitors contributed significantly to this growth, with sales climbing 18% to $1.6 billion. Abbott has set an ambitious target of $10 billion in annual sales for the Libre franchise by 2028.
In contrast, Abbott's diagnostics segment, which had seen a spike during the pandemic, experienced a decline.
Revenues from diagnostics dropped 5.3% to $2.20 billion, slightly below analysts' expectations of $2.21 billion, primarily due to a sharp decrease in COVID-19 test sales. COVID-19 testing sales fell to $102 million in the second quarter from $263 million a year earlier.
Despite these mixed results across different segments, Abbott's overall revenue for the quarter was $10.38 billion, in line with estimates.
The company now expects a full-year profit of $4.61 to $4.71 per share, up from its previous forecast of $4.55 to $4.70. On an adjusted basis, the quarterly profit of $1.14 per share exceeded analysts' average estimate of $1.10 .
This strong performance contrasts with rival Johnson & Johnson, which reported weaker-than-expected medical device sales due to competition and supply constraints.
