Abbott Q3 diagnostics revenues decline 6% on lower COVID testing demand

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Abbott on Wednesday said its third quarter Diagnostics segment revenues declined 6% year over year to $3.67 billion due to lower COVID-19 testing demand.

For the quarter ended September 30, the Abbott Park, IL firm posted overall revenues of $10.4 billion, down 5% year over year but beating Wall Street analysts’ average estimate of $9.68 billion. Its overall revenues in the third quarter increased 1% on an organic basis, which excludes the impact of foreign exchange.

Within Diagnostics on a year-over-year basis for Q3, Abbott’s Core Laboratory revenues declined 7% to $1.22 billion; Rapid Diagnostics revenues were flat at $2.14 billion; Molecular diagnostics revenues fell 47% to $183 million; and Point of Care revenues dropped 6% to $127 million.

In other business segments, Abbott posted Q3 Nutrition revenues of $1.80 billion, down 15% year over year; Established Pharmaceuticals revenues of $1.33 billion, down 5% year over year; and Medical Devices revenues of $3.62 billion, down 1% year over year.

Sales in the third quarter were negatively impacted by year-over-year declines in COVID-19 testing-related sales and a manufacturing stoppage initiated in February of certain infant formula products manufactured at Abbott's Sturgis, MI, facility.

Excluding COVID-19 testing-related sales and the U.S. sales associated with the manufacturing stoppage in the current and prior years, total worldwide sales decreased 0.6% on a reported basis and increased 6% on an organic basis in the third quarter.

Within Diagnostics, Q3 sales were also negatively impacted by the year-over-year declines in COVID-19 testing-related sales, the firm said.

Global COVID-19 testing-related sales were $1.7 billion in the third quarter of 2022 compared to $1.9 billion in the third quarter of last year. Excluding COVID-19 testing-related sales, worldwide Diagnostics sales declined 0.2% on a reported basis and increased 6.1% on an organic basis in the third quarter. 

Abbott posted Q3 net earnings of $1.44 billion, or $.81 per share, compared to $2.10 billion, or $1.17 per share, in the prior-year quarter. Excluding specified items, adjusted diluted EPS was $1.15, surpassing the analysts’ average estimate of $.94.

Abbott said it is raising its full-year 2022 EPS guidance and projects full-year diluted EPS on of $3.75 to $3.81 and adjusted diluted EPS of $5.17 to $5.23.

Full-year 2022 guidance assumes COVID-19 testing-related sales of $7.8 billion, which includes sales of $7.3 billion through September 2022 and projected sales of $500 million in the fourth quarter.

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