(Reuters) -Abbott Laboratories slightly lifted its annual profit forecast on Wednesday, after beating Wall Street estimates for quarterly earnings on strong demand for its glucose-monitoring products and other medical devices.
Sales of continuous glucose monitors such as Abbott's FreeStyle Libre and rivals from DexCom have gotten a boost from increasing diabetes care awareness, wider insurance coverage and preference for devices that do not need finger pricks.
Abbott's medical devices unit generated $4.75 billion in sales for the third quarter, higher than analysts' average estimate of $4.68 billion, according to data compiled by LSEG.
The strong sales of medical devices "points to healthy underlying healthcare utilization in its end-markets", RBC Capital Markets analyst Shagun Singh said in a note.
Sales of continuous glucose monitors, including its biggest product FreeStyle Libre and newly launched over-the-counter device Lingo, surpassed $1.6 billion, growing nearly 21% organically from last year.
Abbott expects FreeStyle Libre, used mainly by diabetes patients, to bring in annual sales of $10 billion by 2028.
Several cardiovascular devices such as TriClip for heart valve repair and Aveir pacemakers also contributed to the strong medical device sales.
Sales from the company's two other segments, diagnostics and established pharmaceuticals, also trumped estimates, while the nutrition business missed expectations.
An inventory adjustment of pediatric products across Abbott's distribution channels weighed on the nutrition segment, according to Evercore ISI analyst Vijay Kumar.
Abbott shares fell 1% in premarket trading.
The Lake County, Illinois-based company now expects annual profit of $4.64 to $4.70 per share, with the midpoint of $4.67 a tad higher than its earlier forecast of $4.61 to $4.71. Analysts on average expect 2024 profit of $4.66.
On an adjusted basis, its quarterly profit of $1.21 per share beat estimates of $1.20.