:max_bytes(150000):strip_icc()/GettyImages-2049058999-9d4c198e2fd24f15938a47c95d17b08e.jpg "Abbott Laboratories Posts Big Drop in COVID-19 Testing Revenue")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2049058999-9d4c198e2fd24f15938a47c95d17b08e.jpg)
Key Takeaways
- Sales at Abbott Laboratories’ diagnostics unit dropped in the second quarter as demand for COVID-19 tests slumped.
- The company beat profit and sales estimates on strong sales of its medical devices.
- Abbott raised its full-year profit and organic sales growth outlooks.
Shares of Abbott Laboratories (ABT) declined in intraday trading Thursday as the healthcare products maker’s sales of COVID-19 tests slumped with the pandemic ending.
The company reported second-quarter adjusted earnings per share (EPS) of $1.14, with revenue rising 4% year-over-year to $10.38 billion. Both beat estimates.
The results were boosted by sales at Abbott’s medical devices segment, which were up 10.2% to $4.73 billion. Diabetes care product sales, which include those for its popular Freestyle Libre glucose-monitoring device, jumped 15.8% to $1.65 billion.
However, sales at its diagnostics unit fell 5.3% to $2.20 billion as COVID-19 test revenue slumped to $102 million from $263 million a year ago.
‘Positive Momentum Heading Into the Second Half’
Chief Executive Officer (CEO) Robert Ford said Abbott has “a lot of positive momentum heading into the second half of the year,” and that’s why it is raising its full-year guidance.
The company now sees 2024 adjusted EPS of $4.61 to $4.71, up from the earlier outlook of $4.55 to $4.70. It also raised the bottom of its organic sales growth range forecast, excluding COVID-19-related testing sales, to 9.5% to 10.0% from the previous guidance of 8.5% to 10.0%.
Abbott Laboratories shares were down 3.5% as of 1:55 p.m. ET Thursday to $101.04, near their lows for the year.