![\"tagreuters.com2023binary_LYNXMPEJ3I0DI-VIEWIMAGE\"](\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3I0DI-VIEWIMAGE.jpg\")
<\/a><\/p>\n(This April 19 story has been corrected to say Third Bridge is an “investment research firm”, not “investment consulting firm”, in paragraph 9)<\/p>\n
By Khushi Mandowara and Leroy Leo<\/p>\n
(Reuters) – Abbott Laboratories said on Wednesday most delayed non-urgent medical procedures had resumed globally three years into the COVID-19 pandemic as hospital staff shortages eased and customers became regular with check-ups, sending shares up 7%.<\/p>\n
The much-awaited recovery in elective surgeries led the company to effectively raise forecast for its core business, even as COVID testing-related sales were seen falling sharply.<\/p>\n
The company is the second major medical device maker to signal a recovery after rival Johnson & Johnson on Tuesday posted better-than-expected sales for the business.<\/p>\n
Abbott’s upbeat commentary lifted shares of other medical device makers Medtronic, Stryker, Zimmer Biomet and Boston Scientific Corp by 2%-4% in morning trade.<\/p>\n
Abbott’s stronger outlook for its non-COVID business was the main takeaway as investors had priced in a fall in COVID testing sales, J.P. Morgan analyst Robbie Marcus said in a note.<\/p>\n
The Illinois-based company lowered its outlook for COVID testing sales this year to $1.5 billion from the $2 billion it forecast in January, but retained its annual adjusted profit outlook at $4.30-$4.50 per share, indicating growth in its non-COVID core business, including medical devices.<\/p>\n
“I think it is sustainable. I don’t think it’s a bolus of backlog,” Abbott CEO Robert Ford said about the recovery in its core business.<\/p>\n
Medical devices – Abbott’s largest segment – clocked an 8.5% rise in sales to $3.90 billion, with $1.2 billion coming from glucose monitoring device Freestyle Libre. Analysts had estimated sales of $3.77 billion for the unit, according to Refinitiv data.<\/p>\n
Still, George Congdon, an analyst with investment research firm Third Bridge, was skeptical. “I wouldn’t read too much into one quarter of U.S. volume recoveries.”<\/p>\n
Staffing issues are now widespread in the U.S. hospitals, and could take a couple of years to fully wane, he said.<\/p>\n
Abbott reported an adjusted profit of $1.03 per share, higher than analysts’ average estimate of 99 cents.<\/p>\n
\n(Reporting by Leroy Leo and Khushi Mandowara in Bengaluru; Editing by Sherry Jacob-Phillips and Sriraj Kalluvila)<\/p>\n
![\"tagreuters.com2023binary_LYNXMPEJ3I0CS-VIEWIMAGE\"](\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3I0CS-VIEWIMAGE.jpg\")
<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"