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Abbott Laboratories Raises Its Outlook on Strong Medical Device Sales

Abbott Laboratories has raised its annual profit forecast following strong sales in its medical devices segment, particularly driven by continuous glucose monitors.

Abbott Laboratories has announced an increase in its annual profit forecast, driven by robust sales in its medical devices segment. The Illinois-based healthcare giant reported better-than-expected third-quarter earnings, with significant contributions from its continuous glucose monitors (CGMs) and other medical devices. The company's CGM sales, including the newly launched over-the-counter device Lingo, rose nearly 21% organically, reaching over $1.6 billion. This growth was supported by increasing diabetes care awareness and wider insurance coverage.

Abbott's medical devices unit generated $4.75 billion in sales for the third quarter, surpassing analysts' expectations. Overall, the company recorded $10.64 billion in sales, exceeding estimates of $10.55 billion. The strong performance in the medical devices segment helped offset declines in other areas, such as the nutrition business, which faced challenges due to ongoing lawsuits related to its infant formula products.

CEO Robert Ford expressed optimism about the company's future growth, highlighting partnerships with major companies for automated insulin dosing pumps and the launch of new products like the Lingo biosensor. Despite a decline in COVID-19 test sales, Abbott expects its revenue to grow between 9.5% and 10% for the full financial year on an organic basis.

Abbott has also raised the midpoint of its full-year earnings guidance, now expecting annual profit of $4.64 to $4.70 per share. The company's stock has responded positively, with shares rising in response to the earnings announcement. Abbott's strong performance and strategic initiatives position it well for continued growth in the coming years.

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