Key Takeaways

• Abbott Laboratories beat third-quarter profit and sales estimates on strong demand for its medical devices.

• Sales were also higher at its pharmaceutical unit, but fell at its diagnostics and nutrition divisions.

• Abbott boosted the midpoint of its full-year earnings forecast.

Abbott Laboratories (ABT) shares rose Wednesday, after the drug and healthcare products maker reported better-than-expected quarterly results and raised the midpoint of its profit outlook on strong demand for its medical devices.

The company posted third-quarter earnings per share (EPS) of 94 cents, with revenue up 4.9% from a year ago to $10.64 billion. Both figures exceeded analysts' estimates compiled by Visible Alpha.

"We're well-positioned to achieve the upper end of our initial guidance ranges for the year and have great momentum heading into next year," Chief Executive Officer (CEO) Robert Ford said.

Sales of Medical Devices Jump

Abbott said it expects full-year adjusted EPS in the range of $4.64 to $4.70, compared to the $4.61 to $4.71 range it projected when it announced its second-quarter results in July.

Sales of medical devices jumped 11.7% in the third quarter, boosted by double-digit percentage growth for diabetes care, structural heart, heart failure, and electrophysiology products. Established pharmaceuticals sales edged higher though sales at its diagnostics and nutrition units were down slightly.

The news sent shares of Abbott Laboratories up close to 2% in Wednesday afternoon trading. They’ve advanced about 7% since the start of the year.

Read the original article on Investopedia.