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Abbott Labs Profit Beats, Helped by Virus-Test Unit

Abbott Labs ABT reported second-quarter results above expectations on particular strength from its coronavirus-testing division.
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Abbott Laboratories  (ABT) - Get Free Report shares on Thursday rose after the health-care major reported second-quarter results that topped analyst expectations on particular strength from its coronavirus-testing division. 

The Abbott Park, Ill., company reported second-quarter earnings of 30 cents a share, down from 56 cents in the year-earlier quarter. Adjusted profit was 57 cents a share in the latest quarter. Revenue fell to $7.33 billion from $7.98 billion. 

Analysts surveyed by FactSet were expecting the company to report adjusted earnings of 42 cents a share on revenue of $6.81 billion. 

The company's diagnostics unit, which is the division responsible for its coronavirus test, saw sales of $1.99 billion, a 4.7% year over year increase. That figure included $615 million in sales from coronavirus tests. 

"Our diversified business model has proven to be a true strength during this time," Chief Executive Robert B. Ford said in a statement. 

"We're a leader in the global covid-19 testing efforts, we've continued to advance our pipeline and, importantly, we saw significant improvements in growth trends throughout the quarter in the business areas that were initially most impacted by the pandemic."

Abbott suspended its full-year forecast in April due to uncertainties surrounding the impact of coronavirus on its business. 

But the company now expects adjusted earnings of at least $3.25 per share for the year. The survey of analysts polled by FactSet estimates earnings of $2.91 a share for the year. 

Abbott shares at last check slipped 0.2% to $96.55. The shares have leaped by more than half from their 52-week low above $61 set in late March.