Skip to main content
Publish date:

Abbott Labs Climbs on Earnings Beat, Upside Guidance

Abbott Labs third-quarter results got a boost from the clearance of its rapid covid-19 test.

Abbott Labs  (ABT) - Get Abbott Laboratories Report shares rose after the health-care giant reported stronger-than-expected third-quarter results and provided full-year guidance to the upside.

The company reported net income of $1.23 billion, or 69 cents a share, up from $960 million, or 53 cents, in the year-earlier period. The Abbott Park, Ill., company reported the latest adjusted earnings at 98 cents a share.

Revenue of $8.85 billion rose 9.6% year over year. 

Analysts surveyed by FactSet were expecting earnings of 91 cents per share on revenue of $8.54 billion. 

"Our new-product pipeline continues to be highly productive, and we're well-positioned to finish the year with a lot of momentum," Chief Executive Robert Ford said in a statement. 

The company now expects full-year 2020 earnings of at least $2.35 a share, or an adjusted $3.55. 

TheStreet Recommends

Analysts surveyed by FactSet are expecting the company to report earnings of $3.34 a share.

Abbott during the quarter received Food and Drug Administration emergency-use authorization for its  15-minute covid-19 test.

"Our strong results and increased guidance are a direct reflection of our ability to innovate and deliver despite challenging conditions," Ford said. 

"We intentionally designed the BinaxNOW test and Navica app so we could offer a comprehensive testing solution to help Americans feel more confident about their health and lives," Ford said when Abbott unveiled the test. 

"BinaxNOW and the Navica app give us an affordable, easy-to-use, scalable test, and a complementary digital health tool to help us have a bit more normalcy in our daily lives."

Abbott shares at last check were up 1.3% to $109.80. 

Latest From TheStreet and Jim Cramer: