Abbott beats profit estimates on medical devices demand, shares fall on forecast
Abbott beat Wall Street estimates for second-quarter profit on Thursday, driven by strong demand for its medical devices including continuous glucose monitors, News.az reports citing CNN.
However, shares fell more than 4% premarket after its third-quarter earnings forecast fell short of expectations.
Abbott expects profit of between $1.28 and $1.32 per share, below expectation of $1.34.
Sales of its continuous glucose monitoring devices, which include the FreeStyle Libre series and Lingo, jumped 21.4% to $1.9 billion in the second quarter.
Continuous glucose monitor makers such as Abbott, Dexcom (NASDAQ:DXCM) and Medtronic (NYSE:MDT) are riding a surge in demand as diabetes awareness rises, insurance coverage expands, and patients embrace finger-prick-free technology.
Abbott’s quarterly revenue came in at $11.14 billion, beating expectations of $11.07 billion, according to data compiled by LSEG.
The medical device business, which sells diabetes and heart-related devices among others, posted sales of $5.37 billion, topping estimates of $5.24 billion.
On an adjusted basis, the company reported a profit of $1.26 per share for the second quarter, compared with analysts’ average estimate of $1.25.
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