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Abbott narrows full-year financial guidance amid strength in medical device sales

Published 16/10/2024, 14:34
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ABT
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Investing.com -- Abbott has raised the midpoint of its full-year income guidance as the group was bolstered by solid sales of medical devices and targeted new product approvals.

The Illinois-based company said it now expects to deliver annual diluted earnings per share, excluding specific items, of $4.64 to $4.70, compared to prior estimates of $4.61 to $4.71. Consensus projections had seen the figure at $4.66, according to Bloomberg News.

For the current quarter, the figure is forecast at $1.31 to $1.37, versus analysts' expectations of $1.34.

"We're well-positioned to achieve the upper end of our initial guidance ranges for the year and have great momentum heading into next year," said Chief Executive Officer Robert Ford in a statement.

Organic sales growth for 2024 was also predicted to be between 9.5% to 10%, excluding sales of its COVID-19 tests. Abbott noted that it remains unable to provide an outlook for COVID tests with "reasonable certainty", partly citing the impact of the crisis moving to an endemic from pandemic state.

Stripping out its COVID test business, Abbott reported sales growth of 8.2% in its third quarter, slowing from an increase of 13.8% in the year-ago period and below estimates of 9.3%.

However, revenue from medical devices jumped by 11.7% year-on-year to $4.75 billion, beating projections of $4.68 billion, thanks in particular to strength in demand for its continuous glucose monitors for patients with diabetes. The uptick in the diabetes care unit helped offset flagging sales in its nutrition and diagnostics segments.

In the three months ended on September 30, adjusted per-share profit grew to $1.21. Consensus expectations had placed the number at $1.20.

Shares in Abbott wavered around the flatline in premarket US trading on Wednesday.

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