China COVID-19, Johnson & Johnson, Abbott Labs, medical device sales, FreeStyle Libre, COVID-19 tests, nutrition sales, baby formula facility, market share, Similac, Reckitt Benckiser, profit beat estimates.
Abbott Laboratories reported lower-than-expected medical device sales for the fourth quarter due to the COVID-19 pandemic and supply-chain issues in China. Abbott’s shares dropped by 2.2% in U.S. trading on Wednesday. Despite the decline in medical device sales, the company’s overall profit was better than expected, driven by strong demand for its diagnostics business and glucose monitoring device FreeStyle Libre.
The company recorded $1.1 billion each in sales of FreeStyle Libre and COVID-testing related sales. It also reported an 11% drop in overall nutrition sales for the quarter, with U.S. pediatric nutrition revenue dropping by about a fifth due to disruptions at its baby formula facility in Michigan. The plant faced a criminal investigation, which caused foreign infant formula makers to grab away market share from Abbott.
Chief Executive Robert Ford said that Abbott expects to recover its market share in 2023. Production has since ramped up and Abbott has begun to claw back share for formula. The company also forecast an adjusted profit of $4.30 to $4.50 per share for 2023, with the mid-point marginally lower than analysts’ average estimate of $4.41.
Abbott Laboratories reported lower-than-expected medical device sales for the fourth quarter of 2021 due to the COVID-19 pandemic and supply-chain issues in China. The company’s overall profit was better than expected, driven by strong demand for its diagnostics business and glucose monitoring device FreeStyle Libre. It recorded $1.1 billion each in sales of FreeStyle Libre and COVID-testing related sales, but reported an 11% drop in overall nutrition sales for the quarter.
The plant faced a criminal investigation, which caused foreign infant formula makers to grab away market share from Abbott. Chief Executive Robert Ford said that Abbott expects to recover its market share in 2023 and production has since ramped up and Abbott has begun to claw back share for formula. The company also forecast an adjusted profit of $4.30 to $4.50 per share for 2023, with the mid-point marginally lower than analysts’ average estimate of $4.41.
Abbott Laboratories reported lower-than-expected medical device sales for the fourth quarter of 2021 due to the COVID-19 pandemic and supply-chain issues in China. The company’s overall profit was better than expected, driven by strong demand for its diagnostics business and glucose monitoring device FreeStyle Libre. Chief Executive Robert Ford said that Abbott expects to recover its market share in 2023, and production has since ramped up and Abbott has begun to claw back share for formula.
Abbott Laboratories reported lower-than-expected medical device sales for the fourth quarter of 2021 due to the COVID-19 pandemic and supply-chain issues in China. The company’s overall profit was better than expected, driven by strong demand for its diagnostics business and glucose monitoring device FreeStyle Libre. The plant faced a criminal investigation, which caused foreign infant formula makers to grab away market share from Abbott.
Chief Executive Robert Ford said that Abbott expects to recover its market share in 2023 and production has since ramped up and Abbott has begun to claw back share for formula. The company also forecast an adjusted profit of $4.30 to $4.50 per share for 2023, with the mid-point marginally lower than analysts’ average estimate of $4.41. This forecast indicates that Abbott is confident that it will be able to regain its market share and increase its profits in the upcoming year.
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