Abbott Lifts Annual Profit Guidance On Higher COVID-19 Test Sales

Abbott Lifts Annual Profit Guidance On Higher COVID-19 Test Sales
  • Abbott Laboratories ABT has reported Q2 FY22 adjusted EPS of $1.43, up 22.2% Y/Y, better than the consensus of $1.12.
  • Q2 sales of $11.3 billion increased 10.1% on a reported basis and 14.3% on an organic basis, beating the consensus of $10.29 billion.
  • Worldwide sales, excluding COVID-19 testing-related sales, decreased 0.3% on a reported basis and 4.1% on an organic basis.
  • Global COVID-19 testing-related sales were $2.3 billion, led by sales of rapid testing products.
  • Related: FDA Probes Another Infant Death Given Abbott Formula, Less Than Month After Troubled Plant Reopens.
  • Medical Devices sales increased 2.5% to $3.18 billion on a reported basis and 7.5% organically. Reduced cardiovascular and neuromodulation procedure volumes negatively impacted sales growth due to recent surges of COVID-19, staffing challenges, and lockdowns in China.
  • Abbott's quarterly dividend of $0.47 per share is payable on August 15, 2022, to shareholders of record on July 15, 2022.
  • Outlook: Abbott has increased FY22 adjusted EPS guidance to $4.90 from the earlier guidance of $4.70, compared to the consensus of $4.88.
  • 2022 guidance includes projected COVID-19 testing-related sales of approximately $6.1 billion versus the prior guidance of $4.5 billion.
  • Price Action: ABT shares are down 2.16% at $107.55 during the market session on the last check Wednesday.

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