Abbott tops consensus expectations despite decline in COVID-19 testing related sales

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Abbott (NYSE:ABT) shares fell Wednesday despite topping consensus expectations for profit and revenue.

The medical device firm reported adjusted fourth-quarter earnings of $1.03 per share, $0.11 better than the analyst estimate of $0.92.

Revenue for the quarter came in at $10.1 billion versus the consensus estimate of $9.62B. Despite topping consensus estimates, the company said revenue fell 12% year-over-year, negatively impacted by an expected decline in COVID-19 testing-related sales.

“We significantly exceeded the EPS guidance we provided at the beginning of last year despite challenging global business conditions,” said Robert Ford, chairman and chief executive officer of Abbott. “Our R&D pipeline continues to be highly productive with several recent and upcoming new product launches that position us well going forward.”

Looking forward, Abbott sees FY2023 EPS between $4.30 and $4.50, in line with the consensus estimate of $4.40.

Following the earnings release, Stifel analysts said there were few surprises.

“Abbott’s Covid testing business once again helped deliver above-Consensus top and bottom-line performance, with 4Q22 sales at $10.1B beating Stifel/Consensus $9.45B/$9.6B projections,” they said. “EPS at $1.03 was also ahead of Stifel/Consensus $0.88/$0.92. Our 4Q22 estimates incorporated $500M Covid test sales, while the company sold $1.069B…effectively the entire difference between our projections and Abbott top-line results.”

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