ABT Stock Dips As Covid Testing Demand Falls Off In Second Quarter

Abbott Laboratories (ABT) beat Wall Street’s second-quarter forecasts Thursday, but ABT stock dropped as sequential Covid testing demand plummeted.




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For the second quarter, Abbott reported $1.3 billion in global Covid testing sales, down roughly 41% from the first quarter. Excluding Covid testing sales, total sales grew 11% organically compared with pre-pandemic levels, Chief Executive Robert Ford said in a written statement.

Edward Jones analyst Ashtyn Evans noted Covid testing demand would remain a wild card for ABT stock in the near term.

“We believe testing demand will continue to be difficult to predict, and fluctuations in demand could impact Abbott’s full-year results,” she said in a report to clients. “We believe long-term growth will be driven by innovative new diabetes devices, heart devices and diagnostic products.”

On the stock market today, ABT stock sank 0.6% to 118.25.

ABT Stock: Covid Testing Demand Falls

Overall, Abbott reported $10.2 billion in second-quarter sales, up 39.5% on a strict as-reported basis. Organically, sales jumped 35%. Sales beat forecasts for $9.69 billion.

Adjusted profit climbed more than 105% to $1.17 per share and topped expectations for $1.02.

All four of Abbott’s key segments experienced growth. Diagnostics led the way with sales increasing nearly 63% year over year, despite a sequential slowdown in Covid testing sales. Medical device sales also popped more than 51%. Going back and comparing with the same, pre-pandemic quarter in 2019, medical device sales were up 19.2% in 2021.

“We’re achieving very strong growth across our portfolio,” CEO Ford said. Organic growth compared to the same quarter in 2019 “demonstrates the fundamental strength of our performance.”

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For the year, Abbott predicts adjusted profit of $4.30-$4.50 per share. ABT stock analysts called for adjusted profit of $4.36 per share and $39.39 billion in sales.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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View more information: https://www.investors.com/news/technology/abt-stock-abbott-earnings-q2-2021/

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