Abbott Labs Equity Gain After More Than Doubles Earnings, Revenue Up Above Expectations

Shares of Abbott Laboratories ABT,
rose 0.2% in premarket trading Thursday after the medical device, diagnostics and nutrition company reported second-quarter earnings and revenue that exceeded expectations, with beats in all major business segments. Net income more than doubled to $1.19 billion, or $1.17 per share, from $537 million or 57 cents per share in the same period a year ago. Excluding one-time items, adjusted EPS of $1.17 was above the FactSet consensus of $1.02. Revenue grew 39.5% to $10.22 billion, above the FactSet consensus of $9.69 billion, with the strongest growth in sales of diagnostic products (62.8%) and medical devices (51.3 %). For 2021, the company expects adjusted EPS of $4.30 to $4.50, compared to the FactSet consensus of $4.36. “We are achieving very strong growth in our portfolio,” said Chief Executive Robert Ford. “Perhaps most impressively, excluding COVID test-related sales, our revenue grew more than 11 percent organically compared to pre-pandemic levels in Q2 2019, demonstrating the fundamental strength of our performance.” The stock is up 8.7% through Wednesday, while the S&P 500 SPX,
has improved by 16.0%.