Abbott Labs (NYSE:ABT) beat expectations Thursday with its first quarter earnings , but suspended its guidance for 2020 due to uncertainties regarding the duration and impact of the coronavirus pandemic.
Abbott Labs announced earnings per share of $0.65 on revenue of $7.73 billion, ahead of the expected EPS of $0.63 on revenue of $7.59B.
"It's an unprecedented time," said Robert B. Ford, president and chief executive officer, "and our colleagues are rising to it in unprecedented ways."
The pharma company has been in the spotlight after it announced this week that it has launched a lab-based test for Covid-19, its third one for the virus. Abbott Labs plans to distribute 4 million of the tests in April, going up to 20 million per month in June.
“The coronavirus pandemic has produced an environment which is both negative and positive for Abbott,” said Haris Anwar, an analyst with .
“ While the outbreak is likely to hurt its medical device business due to the postponement of minor and routine surgeries all over the country, the company is well-positioned to make incremental sales due to its work on the new point-of-care COVID-19 testing device, which can produce positive results in five minutes. That breakthrough could be a game-changer for its short-term revenue outlook if it’s able to make more of them and supply them globally.”
Abbott Labs shares gained 2.60% in pre-market trade following the report.
