(Reuters) -Abbott Laboratories raised its annual profit forecast on Thursday after its second-quarter earnings edged past Wall Street estimates on double-digit growth in sales of its glucose monitors and strong demand for heart devices.
The medical devices unit powered the beat while sales in its diagnostics and nutrition businesses missed estimates. #AbbottProfitForecast
Abbott’s shares fell 2.6% to $102.21 in early trading.
The strength in medical devices “likely won’t be enough to fully shake” fears over the company’s liability in cases surrounding its infant formula just yet, J.P. Morgan analyst Robbie Marcus said in a note.
Earlier this month, the first trial against Abbott over claims that its formula for preterm infants used in neonatal intensive care units causes a potentially deadly bowel disease got underway.
Abbott has said its products for premature infants are life-saving and called the lawsuits meritless.
Medical devices sales jumped 10.2% to $4.73 billion, ahead of estimates of $4.66 billion, according to LSEG data. #AbbottProfitForecast
Sales of devices, like those used in heart procedures, have been boosted in recent quarters as more people, especially older adults, caught up on surgeries deferred during the pandemic.
Sales of continuous glucose monitors like Abbott’s FreeStyle Libre have increased due to growing diabetes care awareness. Wider insurance coverage and a preference for devices without finger pricks have also contributed.
FreeStyle Libre sales jumped 18% to $1.6 billion in the second quarter. Abbott expects the device, including a recently approved over-the-counter version, to bring in sales of $10 billion by 2028.
Consequently, the Abbott profit forecast underscores the company’s potential for sustained growth. This optimism bodes well for Abbott’s future in the competitive medical device industry.
