By Matt Grossman
Abbott Laboratories recorded a surge in revenue in its U.S. diagnostics business during April, May and June, fueled by strong demand for the company's Covid-19 testing.
Revenue for the Abbott Park, Ill.-based medical company's U.S. diagnostics segment climbed 23.2% to $857 million. World-wide, Abbott's diagnostics business grew 4.7% to $1.99 billion.
Abbott provides testing related to Covid-19 on three different platforms. It offers both lab-based and on-site tests for current infections, and also provides a lab-based antibody test to check if a person was previously infected with the virus. A decline in testing services for other conditions tempered the segment's results, however.
Overall, sales decreased for Abbott as the pandemic disrupted demand for its medical devices used in procedures unrelated to the new coronavirus. Sales of medical devices fell 21.2% to $2.42 billion.
The company's revenue overall declined to $7.33 billion from the $7.98 billion recorded in last year's second quarter -- a decline of 8.2%, or 5.4% on an organic basis, which excluded the impact of foreign exchange. Analysts polled by FactSet had estimated quarterly revenue of $6.81 billion.
Sales for Abbott's pharmaceuticals business -- which serves international markets -- declined 8.6% in the quarter to $1.01 billion. Strong growth for the segment in China was offset in countries experiencing continued Covid-19 outbreaks such as Russia, Brazil and Colombia.
The company's overall profit declined to $537 million, or 30 cents a share, from $1.01 billion, or 56 cents a share, in the same period a year earlier.
Adjusted earnings were 57 cents a share. Analysts had forecast adjusted earnings of 42 cents a share.
Abbott also reinstated full-year guidance, forecasting adjusted earnings of at least $3.25 a share, with a spokesman attributing the outlook to momentum the company is beginning to register. Abbott had canceled previous guidance in April, citing uncertainty about the course of the pandemic.