Abbott Laboratories, a leading diagnostics and medical-device company, saw its stock (ABT) rise 1.6% in premarket trade on Thursday. Despite lower earnings compared to the previous year, Abbott Laboratories managed to surpass analyst estimates.
Earnings Report Highlights
In the second quarter, the company reported a net income of $1.375 billion, equivalent to 78 cents per share. This is a decrease from the $2.018 billion, or $1.14 per share, recorded during the same period last year. However, adjusted per-share earnings came in at $1.08, exceeding the FactSet consensus of $1.05.
Sales Performance
Abbott Laboratories experienced an 11.4% decline in sales, amounting to $9.978 billion for the quarter. Despite this decrease, the company still outperformed the FactSet consensus of $9.972 billion in sales. It is important to note that the decline in sales was primarily due to a reduction in COVID-19 testing-related sales compared to the previous year.
Future Outlook
Despite challenges posed by the ongoing pandemic, Abbott Laboratories remains optimistic about its full-year performance. The company expects adjusted earnings per share (EPS) for the year to range between $4.30 and $4.50. Moreover, they anticipate double-digit growth in sales (excluding COVID testing) and estimate COVID testing-related sales to reach approximately $1.3 billion for the year.
Stock Performance
Year-to-date, Abbott Laboratories’ stock has experienced a 2.3% decline, contrasting with the 19% gain of the S&P 500 (SPX).
