Abbott Laboratories (NYSE:ABT) increased its annual profit forecast on Thursday following a second-quarter performance that surpassed Wall Street expectations, driven by double-digit growth in glucose monitor sales and robust demand for heart devices.
Despite this, shares dropped more than 4% today as sales in the diagnostics and nutrition segments fell short of estimates. J.P. Morgan analysts noted that while the medical devices unit showed strength, concerns over the company's liability in infant formula cases persist.
The second quarter saw Abbott's medical devices sales rise by 10.2% to $4.73 billion, surpassing the estimated $4.66 billion. This growth was fueled by increased surgeries post-pandemic and higher demand for continuous glucose monitors like the FreeStyle Libre, whose sales jumped 18% to $1.6 billion. Abbott projects FreeStyle Libre sales to hit $10 billion by 2028.
However, the company's nutrition business, which includes infant and adult formula products, reported sales of $2.15 billion, slightly missing the forecasted $2.16 billion. Diagnostics sales, including COVID-19 tests, declined by 5% to $2.20 billion, against an estimate of $2.21 billion.
Abbott posted an adjusted quarterly profit per share of $1.14, exceeding the $1.10 expected by analysts. The company raised its full-year profit forecast to $4.61 to $4.71 per share, up from the previous range of $4.55 to $4.70.