Abbott Laboratories (NYSE:ABT) shares surged in early Thursday trading after it posted a 16% drop in quarterly profit partly due to a tax expense and suspended its full-year forecast, citing uncertainty surrounding the coronavirus outbreak.
The medical device company has launched three coronavirus tests in the United States, including a new test that shows if a person has antibodies against the virus, indicating that they’ve had it in the past and were either asymptomatic or recovered.
Even though there is excitement from President Donald Trump and others that Abbott’s tools could be effective in fighting the outbreak, the company is suspending guidance for the year due to "uncertainties regarding the duration and impact of the coronavirus" as sales in some of its other categories fall.
CEO Robert Ford noted, "First and foremost, I want to thank our employees, our customers, and our suppliers for their extraordinary efforts to maintain supply of our critically important products to the people who need them, around the world.
"It’s an unprecedented time and our colleagues are rising to it in unprecedented ways."
The company reported first-quarter earnings of 65 cents per share, higher than the 58 cents anticipated by analysts. It generated $7.7 billion in revenue, higher than the $7.3 billion analysts expected.
Abbott's strong financial position is supported by a healthy balance sheet, including approximately $3.7 billion in cash, cash equivalents and short-term investments, and revolving credit facilities in place that could provide additional access to up to $5 billion, if needed.
The stock rose $2.64, or 2.9%, soon after Thursday’s open to $93.66.
