Abbott Laboratories reported strong second quarter results Wednesday as increased sales on its COVID-19 test kits outweighed declines in baby formula caused by the Similac recall.
Its quarterly sales were up 10.1% with revenue of $11.3 billion, topping estimates by $930 million.
"I think that's a rarity in this environment," Robert Ford Abbott's chief executive, said about the company beating expectations at a time of economic uncertainty.
Abbott's global COVID testing sales reached $2.3 billion for the quarter — accounting for about 20% of the company's total sales. Abbott, based in Chicago, makes the BinaxNow at-home COVID test that are sold over-the-counter.
Those test sales drove revenue in its U.S. rapid diagnostics division up 195.4%.
For much of the year, Abbott has been plagued by problems related to its baby formula business. The company closed its formula facility in Sturgis, Mich., in February after the FDA found strains of bacteria at the plant. The shutdown fueled a national infant formula shortage.
Abbott's U.S. pediatric-nutrition sales were down 21.6% for the quarter.
The company restarted production there on July 1 with just its EleCare formula brand. Abbott said it is "working to restart the production of Similac as soon as we can."
Its global medical device sales were up 7.9% for the quarter. The company posted solid results in its U.S. diabetes care category, where sales grew 36.8%, driven by the popularity of its Libre glucose monitoring device.
"Our new product launches are performing very well," said Ford.
The Fortune 500 med-tech company reported earnings per share of $1.43 for the quarter, which also exceeded Wall Street's estimate of $1.14.
The company also raised its full-year guidance by 20 cents, with a new per-share estimate of at least $4.90.
Despite those numbers, the company's stock closed down 1.3% for the day.
Abbott has a significant presence in Minnesota with 5,000 employees.
