Abbott Laboratories (ABT) exceeded expectations in the first quarter, despite a decline in its Covid-related business, thanks to a strong performance in its medical devices division. Edward Jones analyst John Boylan said that sales were better than expected, with product innovation playing a significant role in the success of heart valve, heart failure, and neuromodulation products. ABT’s stock increased by 7.8% to reach 112.29, its highest point since January. ABT’s Q1 adjusted earnings per share fell 40.5% to $1.03, but still surpassed FactSet’s estimate of 99 cents, while sales fell 18.1% to $9.75 billion.
However, ABT’s organic sales growth remained strong at 10%, despite the exchange rates’ impact, leaving the pediatric nutrition business in China and decreasing Covid test sales. Organic medical device sales grew 12.4%, while established pharmaceuticals and nutrition had growth of 11.1% and 10.3%, respectively, excluding sales in the US. Abbott’s sales of body-worn glucose monitors reached $1.2 billion, including 50% growth in the US. Abbott expects earnings of $4.30-$4.50 per share and high single-digit organic sales growth this year, excluding Covid tests.
