Abbott (NYSE:ABT) shares gained today in pre-market trading after the healthcare giant beat the second-quarter consensus earnings forecast and raised its outlook on the rest of the year.
Abbott Park, Ill.-based Abbott posted profits of $1.0 billion, or 56¢ per share, on sales of $7.98 billion for the three months ended June 30, for a bottom-line gain of 37.2% on sales growth of 2.7% compared with Q2 2018.
Adjusted to exclude one-time items, earnings per share were 82¢, two pennies ahead of the consensus on Wall Street, where analysts were looking for revenues of $8.0 billion.
“Our sales growth accelerated and is sustainable,” chairman & CEO Miles White said in prepared remarks. “We have great momentum and are raising our guidance above the strong outlook we previously set for the year.”
Abbott said it now expects to post adjusted EPS of $3.21 to $3.27 this year, up from $3.15 to $3.25 previously. Organic sales growth is forecast for 7.0% to 8.0%, the company said.
Third-quarter adjusted EPS are pegged at 83¢ to 85¢, Abbott said.
ABT shares, which closed down -0.8% yesterday at $83.16 apiece, were up 1.7% to $84.60 each today in pre-market trading.
Medical device sales gain 6%
Sales for Abbott’s medical device division rose 6.4% to $3.08 billion, powered by double-digit growth in electrophysiology ($430 million, +7.6%), heart failure ($201 million, +22.8%), structural heart ($352 million, +11.9%) and diabetes ($602 million, +28.2%).
Abbott put the spotlight on its HeartMate 3 left ventricular assist device, which won FDA approval as a destination therapy last year, and an expanded indication for the MitraClip mitral valve repair device and as particular growth drivers.
But it was the diabetes division’s FreeStyle Libre continuous glucose monitoring device that posted the strongest growth for the medtech business, with sales up 63.9% to $433 million (nearly 72% of the total for the diabetes segment).
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