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Pharma & Biotech

Abbott Laboratories weathers Covid-19 test slowdown to report forecast topping 1Q profit 

Abbott Laboratories (NYSE:ABT)' first quarter earnings topped expectations with growth in business segments such as medical devices offsetting a sharp decline in Covid-19 test sales, sending its shares higher in pre-market trading.

The Chicago-based medical products company posted adjusted earnings per share of $1.03, above the consensus expectation per FactSet of $0.99.

Revenue was in line with expectations at $9.7 billion, with the company noting its reported sales decreased by 18.1% during the period due to the anticipated drop in Covid-19 testing-related sales when compared to the year-ago quarter.

Its underlying base business grew by 10% during the quarter, led by medical devices, established pharmaceuticals, and nutrition.

Reported medical device sales jumped 8.5%, led by double-digit organic growth in diabetes care, structural heart, heart failure, and neuromodulation.

The company reiterated its full-year guidance for earnings per share of $3.05 to $3.25 and adjusted earnings per share of $4.30 to $4.50.

For the year, Abbott now expects sales growth, excluding Covid-19 testing-related sales, of at least the high single digits, and Covid-19 testing-relates sales of about $1.5 billion.

Abbott shares had added 3.4% at US$107.70 before the opening bell in New York on Wednesday.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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