Abbott Cuts Profit Forecast as Covid-19 Testing Demand Falls
June 01 2021 - 8:46AM
Dow Jones News
By Micah Maidenberg
Abbott lowered its profit forecast for the year in part because
demand for Covid-19 tests has declined and is expected to continue
to weaken as vaccines protecting against the virus are
distributed.
The medical device and technology company on Monday said it now
expects to report earnings from continuing operations in the range
of $2.75 to $2.95 a share for 2021, down from an April forecast
that forecast at least $3.74 a share for that profit metric.
The company said it believes it will record $1.55 a share during
the year in certain costs, including expenses to align its Covid-19
testing-related business with current and projected demand. That
cost outlook is up from the earlier guidance.
Excluding one-time times, the company said it now believes it
will report $4.30 to $4.50 a share in profit from continuing
operations, compared with a previous forecast of $5 a share.
In addition to the distribution of vaccines, guidance from
health authorities about how fully vaccinated people should conduct
themselves has hampered interest in Covid-19 tests, Abbott
said.
The company said it had developed 12 tests for Covid-19
globally.
"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," Abbott said.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
June 01, 2021 08:35 ET (12:35 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Abbott Laboratories (NYSE:ABT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Abbott Laboratories (NYSE:ABT)
Historical Stock Chart
From Sep 2023 to Sep 2024