Abbott Laboratories has today reported second-quarter profit above expectations, due to recovery in surgical procedure volumes and demand for its diabetes care devices.
Demand for medical devices is expected to rise this year, tracking a recovery in non-urgent surgical procedures across the US, as older adults in particular get more comfortable visiting hospitals and staffing shortages at those facilities ease.
Rival J&J's medical device segment also topped estimates earlier in the day, helped by a recovery in demand for medical procedures that were delayed during the pandemic.
Abbott clocked quarterly sales for its medical devices at $4.3 billion, with $1.3 billion coming from continuous-glucose-monitoring device Freestyle Libre, beating analysts' estimates of $4.10 billion.
Sales from nutrition were up 6.3% to $2.1 billion, mostly driven by continued recovery of market share in the infant formula business, after the company voluntarily recalled certain products in 2022.
Abbott's nutrition segment was hit following the shutdown at its Michigan plant last year, along with recalls of the baby formula produced at the facility, due to bacterial contamination.
Before the recall, Abbott controlled 40% of the infant formula market, including Similac, but the market share of other companies such as Reckitt Benckiser Group has since grown.
Abbott's diagnostic sales came in at $2.3 billion in the quarter, in line with analysts' average estimates.
The company saw a further decline in Covid-19 test kit sales after the US government ended the Covid Public Health Emergency on May 11.
The company cut its annual Covid-related sales forecast to $1.3 billion, from $1.5 billion previously, but retained its annual profit of $4.30 to $4.50 per share, indicating an increase in its outlook for its non-Covid businesses.
Excluding items, Abbott earned $1.08 per share in second quarter, above Refinitiv IBES estimates of $1.05 per share.
