Abstaffi shares slide after sales of its COVID 19 tests beat expectations

The shares of Abbott Laboratories ABT were down 0.8% in premarket trading on Wednesday. More than $2 billion in sales of its COVID 19 tests helped the company beat expectations for both earnings and revenue in the fourth quarter. Abbott had earnings of $1.9 billion, or $1.11 per share, in the fourth quarter of 2021, compared with earnings of $2.1 billion, or $1.20 per share, in the same quarter in 2020. Earnings per share were $1.32, which is higher than the FactSet consensus of $1.21. Abbott reported revenue of $11.4 billion in the fourth quarter of 2021, up from the $10.7 billion reported in the final quarter of 2020. The consensus on the FactSet was $10.7 billion. Sales of its COVID 19 tests in the final three months of the year led to a $4.4 billion increase in sales in its diagnostics business, including $2.3 billion. The company expects to generate $2.5 billion in sales of COVID 19 tests in 2022, with sales likely to occur early in the year. It expects adjusted EPS of $4.70 to be achieved in 2022. A spokesman said in an email that they see our guidance as a prudent starting point given the unpredictability of the virus and variants. Abbott's stock has been down 12.4% this year, and the S&P 500 SPX has declined 8.6%.