ABBOTT PARK, Ill., June 1, 2021
/PRNewswire/ -- Abbott (NYSE: ABT) today announced an
update to its financial outlook for the full-year 2021. The updated
guidance is due to significantly lower recent and projected
COVID-19 diagnostic testing demand. This has been driven by several
factors, including significant reductions in cases in the U.S. and
other major developed countries, accelerated rollout of COVID-19
vaccines globally and, most recently, U.S. health authority
guidance on testing for fully vaccinated individuals.
While it's positive that these external events and trends signal
an accelerated return to normalcy for many countries, they have
suddenly and fundamentally impacted market demand for COVID-19
testing, particularly for surveillance and screening with rapid
testing.
As a result, Abbott now projects full-year 2021 diluted EPS from
continuing operations under Generally Accepted Accounting
Principles (GAAP) of $2.75 to
$2.95 and full-year adjusted diluted
EPS from continuing operations of $4.30 to $4.50,
reflecting strong, double-digit growth versus the prior year.
Abbott made significant contributions to the global fight
against COVID-19, including the development of 12 tests globally.
Contributions from COVID-19 testing gave the company additional
flexibility to further invest in its strong and growing base
business that continues to see accelerating growth momentum,
including contributions from several recently launched products
across its portfolio.
"We've recently seen a rapid decline in COVID-19 testing demand
and anticipate this trend will continue, which led us to adjust our
full-year guidance," said Robert B.
Ford, president and chief executive officer, Abbott. "At the
same time, excluding COVID-19 tests, our organic base business
growth is accelerating, we continue to see improving end-markets
and our new product pipeline continues to be highly
productive."
Abbott Conference Call
Abbott will conduct a live
webcast of a special conference call through its Investor Relations
website at www.abbottinvestor.com at 8 a.m.
Central time today. An archived edition of the webcast will
be available later today.
Abbott's Earnings-Per Share Guidance
Abbott projects 2021 diluted earnings per share from continuing
operations under GAAP of $2.75 to
$2.95. Abbott forecasts specified
items for the full-year 2021 of $1.55
per share primarily related to intangible amortization,
restructuring and cost reduction initiatives, including expenses to
align its COVID-19 testing-related business with current and
projected demand, expenses associated with acquisitions and other
net expenses. Excluding specified items, projected adjusted diluted
earnings per share from continuing operations would be $4.30 to $4.50 for
full-year 2021.
Abbott projects second-quarter 2021 guidance for diluted
earnings per share from continuing operations under GAAP of at
least $0.39. Abbott forecasts
specified items for the second quarter 2021 of $0.61 per share primarily related to
restructuring and cost reduction initiatives, including expenses to
align its COVID-19 testing-related business with current and
projected demand, as well as intangible amortization, expenses
associated with acquisitions and other net expenses. Excluding
specified items, projected adjusted diluted earnings per share from
continuing operations would be at least $1.00 for the second quarter.
About Abbott:
Abbott is a global healthcare leader that helps people live more
fully at all stages of life. Our portfolio of life-changing
technologies spans the spectrum of healthcare, with leading
businesses and products in diagnostics, medical devices,
nutritionals and branded generic medicines. Our 109,000 colleagues
serve people in more than 160 countries.
Connect with us at www.abbott.com, on LinkedIn at
www.linkedin.com/company/abbott-/, on Facebook at
www.facebook.com/Abbott and on Twitter @AbbottNews.
— Private Securities Litigation
Reform Act of 1995 —
A Caution Concerning Forward-Looking
Statements
Some statements in this news release may be forward-looking
statements for purposes of the Private Securities Litigation Reform
Act of 1995. Abbott cautions that these forward-looking statements
are subject to risks and uncertainties that may cause actual
results to differ materially from those indicated in the
forward-looking statements. Economic, competitive, governmental,
technological and other factors that may affect Abbott's operations
are discussed in Item 1A, "Risk Factors" in our Annual Report on
Form 10-K for the year ended Dec. 31,
2020, and are incorporated herein by reference. Abbott
undertakes no obligation to release publicly any revisions to
forward-looking statements as a result of subsequent events or
developments, except as required by law.
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SOURCE Abbott