Abbott Laboratories surpassed quarterly earnings expectations on Thursday, on to a comeback in non-COVID-19 testing and medical device sales as vaccinations encouraged Americans to begin non-urgent surgeries. After a year in which they had to rely on coronavirus testing to bring profits, the company joined rival Quest Diagnostics in announcing a recovery in their mainstay operations.
On an organic basis, Abbott’s second-quarter sales, excluding COVID testing, increased by more than 11% from pre-pandemic levels in 2019. Its worldwide diagnostics revenue jumped 42.5 percent year over year, excluding coronavirus testing, while medical device sales increased 51.3 percent, owing to growth in its heart devices division. However, because of the increase in vaccines, COVID-19 testing-related sales fell to $1.3 billion from $2.2 billion the previous quarter.
Abbott Laboratories (ABT) topped Wall Street’s second-quarter expectations on Thursday, but the company’s stock fell as consecutive Covid testing demand fell. Abbott reported $1.3 billion in global Covid testing sales in the second quarter, down 41% from the first quarter. However, in a written statement, Chief Executive Robert Ford claimed that total sales climbed 11 percent organically compared to pre-pandemic levels, excluding Covid testing sales.Covid testing demand, according to Edward Jones analyst Ashtyn Evans, will remain a wild card for ABT stock in the short term.