Abbott Laboratories’ reported sales fell 18.1% in Q1 due to what the company called an “anticipated decline” in COVID-19 testing-related sales compared to 2022.

Abbott’s Diagnostics segment experienced the biggest slide, with reported sales down 48.9% year-over-year. Meanwhile, when COVID tests were excluded, Diagnostics sales increased 4%.

The company highlighted the 10% organic sales growth generated by its Medical Devices, Established Pharmaceuticals and Nutrition segments excluding COVID tests.

Still, the drop in sales had a profound impact on Abbott’s financial performance.

During the quarter, Abbott’s operating earnings were nearly halved to $1.5 billion, while net earnings fell 46.1% to $1.3 billion.

Despite some down numbers, the company produced a beat on both its revenue and earnings per share (EPS) compared to expectations from analysts on Wall Street. Abbott also benefited from sales growth in its diabetes treatment devices as well as boosted demand for its other medical equipment.

“Our first-quarter results reflect a very strong start to the year,” Abbott CEO Robert B. Ford said in a statement. “Growth in our underlying base businesses accelerated, including particularly strong results in Medical Devices, Established Pharmaceuticals and Nutrition.”

Looking ahead, the company said that its adjusted EPS from continuing operations remains unchanged in a range of $4.30 to $4.50 and reflects an increased outlook for the underlying base business “offset by a lower forecasted earnings contribution from COVID-19 testing-related sales.”

Excluding sales of its COVID testing devices, which is expected to reach around $1.5 billion, Abbott also projects full-year organic sales growth of at least high-single digits.

One major development during Q1 was the Department of Justice opening a criminal probe into conduct at an Abbott infant formula plant in Sturgis, Michigan that led to a severe nationwide shortage in mid-2022.

The company noted in its earnings release that global sales of its pediatric nutrition products, including infant formula, increased 9.2% on a reported basis, while domestic sales increased 36.1%.

Abbott also got into the consolidation game in Q1 by announcing plans to acquire Cardiovascular Systems, Inc., a Minnesota-based medical device company, for $890 million in early February.