Abbott raises 2022 profit forecast after strong COVID-19 test demand

Abbott Laboratories on Wednesday (Jul 20) raised its annual earnings forecast as demand for its medical devices and diagnostics products helped cushion the impact of a shutdown of its baby formula plant.

COVID-19 testing has shielded the company’s earnings during the pandemic when demand for its medical devices was hurt by deferred elective procedures.

The company reported COVID-19 testing-related sales of US$2.3 billion in the second quarter, while medical device sales rose 2.5 per cent in the quarter.

Abbott said it expects at least US$4.90 per share in adjusted earnings in 2022, compared with at least US$4.70 forecast earlier.

Sales at Abbott’s nutrition unit fell 7.4 per cent, hit by a recall of its baby formulas and a months-long shutdown at its Michigan plant, which has been at the center of a baby formula shortage in the United States.