Despite a massive drop-off in sales of Covid-19 tests, Abbott Laboratories still performed better than analysts' expectations in the first quarter.
The drug giant (NYSE: ABT), with headquarters between Chicago and Milwaukee, reported first-quarter results that bested analysts' expectations on Wednesday, including sales of $9.7 billion, down more than 18% from a year earlier, and adjusted earnings per share of $1.03, down 40% from $1.73 during the same time frame last year.
Analysts polled by Thomson Reuters First Call expected sales of $9.64 billion and earnings of 99 cents per share.
Abbott seems to be working around the drop in Covid tests. In the latest quarter, its worldwide Covid-19 testing sales fell to $730 million from $3.3 billion in the first quarter of the prior year.
The company said it was bolstered by "strong results" in medical devices, which saw sales increase 12% from the previous year's first quarter; established pharmaceuticals, which saw sales increase 11%; and its nutrition category, which saw sales increase 10%.
The company's diabetes care product FreeStyle Libre saw quarterly sales grow to $1.2 billion, including 50% growth in the U.S.
"Our new product pipeline and key growth platforms provide a strong foundation for sustainable growth," an Abbott spokesperson said in a statement.
Some analysts were heartened by Abbott's latest results.
"Abbott Laboratories' recent earnings calls proved that despite declining Covid-19 testing revenues, strong results in other parts of the business, particularly diabetes, will help buoy near-term business performance," said George Congdon, senior analyst at research firm Third Bridge, in a statement.
