Prognosis
Abbott Shares Decline as Investors Seek Growth Beyond Covid
- Sales fell from the year-earlier period but beat estimates
- Covid testing sales dropped 26% from the second quarter
A customer browses an Abbott Laboratories Panbio Covid-19 rapid antigen test kit at a store in Hong Kong.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
Abbott Laboratories shares dropped the most since June 2021 after third-quarter earnings showed a dwindling demand for Covid testing and substantial declines in its infant nutrition businesses after recalls spawned nationwide baby formula shortages.
Total sales of $10.4 billion were down 4.7% from a year ago, with the most acute decline in Abbott’s US nutrition business, where sales dropped 25%. Earlier this year the company had to stop production at one of its baby formula plants after a recall though that production has since resumed.