Abbott Laboratories (NYSE:ABT) stock rose 1.31% (As on July 21, 11:43:10 AM UTC-4, Source: Google Finance) after the company beat quarterly profit expectations as a rebound in surgical procedure volumes drove demand for medical devices despite high inflation-driven costs. Demand for medical devices and non-COVID-19 testing is expected to rise this year, as older adults in particular get more comfortable visiting hospitals and staffing shortages at those facilities ease. Abbott clocked quarterly sales for its medical devices at $4.3 billion, with $1.3 billion coming from diabetes device Freestyle Libre, beating analysts’ estimates of $4.10 billion. Abbott’s diagnostic sales in the quarter were in line with expectations at $2.3 billion. Sales from nutrition were $2.1 billion, as the company said it recovered 75% of the share it lost in the baby formula market after the shutdown at its Michigan plant last year, along with recalls of the formula produced at the facility. Established Pharmaceuticals sales increased 5.2 percent on a reported basis and 12.6 percent on an organic basis in the second quarter. Worldwide Nutrition sales increased 6.3 percent on a reported basis and 9.9 percent on an organic basis in the second quarter.

ABT in the second quarter of FY 23 has reported the adjusted earnings per share of $1.08, beating the analysts’ estimates for the adjusted earnings per share of $1.05. The company had reported the adjusted revenue of $10 billion in the second quarter of FY 23, beating the analysts’ estimates for revenue of $9.6 billion.

Abbott maintained its annual profit of $4.30 to $4.50 per share versus the analyst consensus of $4.40. The company has cut its annual COVID-related sales forecast to $1.3 billion, from $1.5 billion previously, as sales of coronavirus testing products slumped after the U.S. government ended the COVID Public Health Emergency on May 11.

Additionally, in May, Abbott received U.S. Food and Drug Administration (FDA) approval of its TactiFlex Ablation Catheter, Sensor Enabled, the world’s first ablation catheter with a unique flexible electrode tip and contact force sensing technology to treat patients with atrial fibrillation (AFib).  In June, Abbott received U.S. FDA approval of its AVEIR dual chamber (DR) leadless pacemaker system, the world’s first dual chamber leadless pacing system that treats people with abnormal heart rhythms. In addition, the company has declared the company’s quarterly dividend of $0.51 per share. Abbott’s cash dividend is payable August 15, 2023, to shareholders of record at the close of business on July 14, 2023.