Abbott misses revenue expectations on weak demand for diagnostic devices

(Reuters) -Abbott’s quarterly revenue fell short of analysts’ expectations on Wednesday, as weakness in its diagnostics and nutritional businesses failed to offset strong demand for its medical devices.

Shares of the company dropped nearly 3% premarket following the results.

Abbott’s total revenue of $11.37 billion, slightly missed analysts’ average estimate of $11.40 billion, according to data compiled by LSEG.

Sales in its diagnostics segment fell 6.6% to $2.25 billion, missing the estimate of $2.29 billion.

Medical device makers are navigating post-COVID-19 normalization and regulatory headwinds, weighing on growth in the business.

On an adjusted basis, Abbott reported third-quarter profit per share of $1.30, in line with analysts’ average estimate.

The company said it now expects annual adjusted profit to be between $5.12 and $5.18 per share, compared to its previous range of $5.10 to $5.20.

(Reporting by Kamal Choudhury and Christy Santhosh in Bengaluru; Editing by Sriraj Kalluvila)