Investing.com – Abbott Laboratories stock (NYSE:ABT) rose 4% on Wednesday after strong demand for its Covid-19 tests boosted its third-quarter earnings and led it to raise its guidance.
Covid-19 tests had begun to taper off but with vaccinations rates getting sluggish, governments, corporates, schools, colleges and other bodies made Covid testing mandatory. That boosted the demand for testing platforms provided by the company.
Third-quarter sales at Abbott's diagnostics business grew 47% to $3.91 billion, with Covid test-related sales at $1.9 billion, up from $1.3 billion in the second quarter.
Excluding Covid-19 testing-related sales, worldwide diagnostics sales grew a robust 14% as people became more health-conscious and also attended to medical issues the pandemic had forced them to ignore.
Sales in established pharmaceuticals and medical devices business rose by around 15% and 13%, respectively, while the nutrition segment grew 9%.
The pharmaceuticals business, where the company focuses on branded generics, did well in China, Russia and India. Abbott’s medical devices found use in electrophysiology, heart failure, structural heart and diabetes care.
Abbott’s nutrition brands, both for adult and pediatric use, performed well in the U.S.
Total sales rose 22% on organic basis to $10.9 billion and profit per share jumped 43% to $1.4. Both topped estimates and the company said the adjusted profit per share is now seen at $5.05 at midpoint, higher than the $4.4-figure it gave in July.