Abbott Laboratories recorded a smaller second-quarter profit as revenue declined year over year, but the company beat analysts' adjusted earnings expectations amid surging demand for its Covid-19 tests.
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The Abbott Park, Ill.-based health-care products company recorded a second-quarter profit of $537 million, or 30 cents a share, down from a profit of $1.01 billion, or 56 cents a share, for the same three-month period a year earlier.
On an adjusted basis, the company's earnings were 57 cents a share, Abbott said. Analysts had anticipated adjusted earnings of 42 cents a share, according to FactSet.
Second-quarter sales were $7.33 billion, down from $7.98 billion a year earlier. Analysts were expecting sales of $6.81 billion.
Revenue from the company's diagnostics segment rose 23% to $857 million as demand surged for Covid-19 tests. Abbott's diagnostics growth was fueled by its sales of both lab-based tests and on-site tests.
Abbott's medical-device sales declined, however, as procedures were delayed during the global pandemic. Revenue from medical devices decreased 21% on lower demand for cardiovascular and neuromodulation devices.