Abbott weak medical device sales, China impact drag shares down nearly 7 percent
New Delhi: Abbott Laboratories on Wednesday reported lower-than-expected growth in international medical device sales, hit by a strong dollar and supply challenges in China, dragging down shares of the company nearly 7%.
The U.S.-based company's weak medical device sales in markets outside its home country offset the initial enthusiasm over its quarterly beat and an upbeat forecast.
Abbott reported $3.62 billion in overall medical device sales, down 0.5% from last year, as the company faced supply challenges due to lockdowns in China.
J.P. Morgan analyst Robbie Marcus says the issues plaguing the medical device segment "could bleed a bit into" the first quarter next year as well.
Multinational companies such as Abbott and Johnson & Johnson have been hit by the dollar's strength against a basket of currencies, including the sterling and the yen, after the U.S. Federal Reserve ramped up interest rates to tame inflation.
Illinois-based Abbott reported third-quarter worldwide sales of $10.4 billion, down 4.7% from a year ago.
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