The spread of the new delta strain affected US scheduled operations in Q3, so we cut our MedDevice sales forecast for the previous quarter by $ 157 million. In the diagnostics division, weak quarterly data on major items will be more than offset by growth in revenue from sales of Covid tests. Thus, we raised our Diagnostics division’s quarterly revenue estimate to $ 184 million and maintained our valuation for the campaign’s stock at $ 140. Overall, we expect Abbott’s 3Q financials to outperform market expectations, so we assume that our outlook is somewhat conservative. The company will publish reports on October 20.
Abbott is a large diversified healthcare company that includes the former St. Jude Medical and Alere. The company markets its products worldwide and has competitive franchises in nutrition, diagnostics, medical devices, and generic pharmaceuticals under international brands. With strong single-digit organic sales and double-digit earnings growth, Abbott has been performing well over its industry peers over the past several years. We believe Abbott is well positioned to continue to grow its business by driving sales of the revolutionary new Libre continuous glucose measurement technology, clips for the leaflets of the mitral valve of the heart MitraClip and innovative laboratory equipment Alinity.
With franchises in four major health care segments, Abbott is one of the most diversified of the large-cap medical device companies in the world, offering leading products in nutritionals, diagnostics, medical devices and established branded generic pharmaceuticals. Approximately 30% of the company’s revenue is generated in the United States, while another 30% comes from Western Europe, Canada, Japan, and Australia, and the remaining40% is from emerging markets, including India, China, Russia and Brazil.