Abbott beats estimates on medical devices demand as forecast hits shares
However, its shares fell 5% premarket after the company's third-quarter earnings forecast fell short of expectations.
Abbott projected a profit of between $1.28 and $1.32 per share for the current quarter, below expectation of $1.34.
With Abbott shares one of the best year-to-date performers in large and mega-cap medtech, its print needed to be nearly spotless to keep shares moving higher, BTIG analyst Marie Thibault said.
In April, Abbott had said it expects President Donald Trump's tariffs to begin impacting results in the third quarter, with an anticipated annual cost of "a few hundred million dollars."
Investors will likely watch for any comments on tariffs from executives during the post-earnings call after larger rival Johnson & Johnson (JNJ.N), opens new tab on Wednesday halved its expectations for such costs this year to about $200 million.
J.P.Morgan analyst Robbie Marcus said the company's results balance strong underlying growth trends in diabetes care and heart devices against a muted forecast update.
Meanwhile, Abbott said on Thursday it planned to build a manufacturing facility in Georgia by 2028 to support its cardiovascular business, as companies seek to mitigate the tariff impact by moving manufacturing to the U.S.
This follows the company's April announcements for manufacturing and research projects in Illinois and Texas, which are expected to go live by the end of the year.
Sales of Abbott's continuous glucose monitoring (CGM) devices, which include the FreeStyle Libre series and Lingo, jumped 21.4% to $1.9 billion in the second quarter.
CGM makers such as Abbott, Dexcom (DXCM.O), opens new tab and Medtronic (MDT.N), opens new tab 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.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
3 minutes ago
- Daily Mail
Melania Trump's secret guilty pleasure comes with a serious health warning
Melania Trump 's favorite meal is shockingly high in saturated fat, calories and sodium, experts have warned. A recently resurfaced interview with the first lady revealed her favorite dish from French chef Jean-Georges Vongerichten is parmesan-crusted chicken, which features chicken breast and thigh coated in flour, partially encased in parmesan cheese, and dressed with lemon butter sauce and artichokes. Your browser does not support iframes.
Daily Mail
3 minutes ago
- Daily Mail
EXCLUSIVE Benadryl linked to crippling DISEASE: Doctors issue warning to age group at highest risk
Millions of Americans take Benadryl every year to relieve allergies, but doctors have uncovered a shocking link between the medication and a devastating disease. Benadryl's active drug diphenhydramine blocks receptors for histamine, an inflammatory chemical released by the immune system that can trigger symptoms like a runny nose and itchy skin. Your browser does not support iframes.
Reuters
33 minutes ago
- Reuters
US threatens Mexican airline flights over cargo, competition issues
WASHINGTON, July 19 (Reuters) - The Trump administration said on Saturday it is taking a series of actions against Mexico over the Mexican government's decisions to rescind some flight slots for U.S. carriers and force U.S. cargo carriers to relocate operations in Mexico City. U.S. Transportation Secretary Sean Duffy said in a statement the department could disapprove flight requests from Mexico if the government fails to address U.S. concerns over decisions made in 2022 and 2023. The department is also proposing to withdraw antitrust immunity from the Delta Air Lines (DAL.N), opens new tab joint venture with Aeromexico to address competitive issues in the market. Mexico is the most popular international destination among U.S. airline travelers. Delta said if the U.S. Department of Transportation withdraws approval it "would cause significant harm to consumers traveling between the U.S. and Mexico, as well as U.S. jobs, communities, and transborder competition." The Transportation Department said Mexico has not been in compliance with a bilateral air agreement since 2022 when it abruptly rescinded slots and then forced U.S. all-cargo carriers to relocate operations in 2023. Mexico's Transport Ministry and major Mexican airlines, including Aeromexico, could not be immediately reached for comment. Duffy said Mexico was expected to complete construction to alleviate congestion at Mexico City's Benito Juarez International Airport (MEX), but that has yet to materialize three years later. "By restricting slots and mandating that all-cargo operations move out of MEX, Mexico has broken its promise, disrupted the market, and left American businesses holding the bag for millions in increased costs," the department said. The USDOT also said it could take action against European countries over limitations at airports. "We are monitoring European States to ensure that they apply the Balanced Approach process for noise abatement at their airports and do not implement unjustified operational restrictions," the department said. The Transportation Department issued a pair of orders requiring Mexican airlines to file schedules with the department for all their U.S. operations by July 29 and requiring prior U.S. approval before operating any large passenger or cargo aircraft charter flights to or from the United States. "Mexico has altered the playing field significantly for airlines in ways that reduce competition and allow predominant competitors to gain an unfair advantage in the U.S.-Mexico market," the department said. "Mexico's actions harm airlines seeking to enter the market, existing competitor airlines, consumers of air travel and products relying on time-sensitive air cargo shipments traded between the two countries, and other stakeholders in the American economy.' If the U.S. rescinds antitrust approval for Delta and Aeromexico, they would be required to discontinue cooperation on common pricing, capacity management, and revenue sharing, but Delta would also be able to retain its equity stake in Aeromexico, maintain all of its existing flying in the U.S.-Mexico market unimpeded and continue a partnership.
