Abbott raises annual profit forecast as strong medical device sales power quarterly beat

ABBOTT Laboratories raised its annual profit forecast and beat Wall Street estimates for second-quarter earnings on Thursday (Jul 18), buoyed by strong sales of its cardiac and diabetes care devices.

Much like the rest of the industry, the company’s medical devices segment has benefited from a recovery in sales of heart valves and pacemakers in recent quarters, as more people – especially older adults – opted for surgeries that were deferred during the pandemic.

The business was also bolstered by strong sales of diabetes care devices, especially of FreeStyle Libre. Sales of the glucose monitors climbed 18 per cent to US$1.6 billion.

Overall, medical devices sales rose 10.2 per cent to US$4.73 billion, ahead of the average analyst estimate of about US$4.66 billion.

The company now expects a profit of US$4.61 to US$4.71 per share for the full year. This is compared with its prior forecast of US$4.55 to US$4.70.

On an adjusted basis, quarterly profit of US$1.14 per share beat analysts’ average estimate of US$1.10, according to London Stock Exchange Group data. REUTERS