Abbott Q2 Profit Tops Estimates; Raises 2022 Earnings Guidance

(RTTNews) - Abbott (ABT) said it recorded another quarter of strong growth with an increase in adjusted earnings per share of 22.2 percent year-over-year. Sales were up 14.3 percent on an organic basis, which excludes the impact of foreign exchange. Looking forward, the company increased its full-year 2022 EPS guidance. The company noted that its 2022 guidance includes projected COVID-19 testing-related sales of $6.1 billion, which includes sales of $5.6 billion through June 2022 and projected sales of $500 million over the next few months.

Excluding items, second-quarter adjusted EPS was $1.43 compared to $1.17, prior year. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.12, for the quarter. Analysts' estimates typically exclude special items. Net earnings excluding specified items was $2.54 billion, up 20.2% from previous year.

GAAP net earnings were $2.02 billion, an increase of 69.7% from prior year. EPS was $1.14 compared to $0.66, last year.

Second-quarter worldwide sales were $11.3 billion, up 10.1 percent on a reported basis. Global COVID-19 testing-related sales were $2.3 billion in the second quarter. Worldwide sales, excluding COVID-19 testing-related sales, decreased 0.3 percent on a reported basis and increased 4.1 percent on an organic basis. Analysts on average had estimated $10.29 billion in revenue.

The company noted that its worldwide sales were negatively impacted by a voluntary recall and manufacturing shutdown initiated in February of certain infant formula products manufactured at one of Abbott's U.S. plants. Excluding COVID-19 testing-related sales and the U.S. sales associated with the recalled products in the current and prior years, total worldwide sales increased 1.6 percent on a reported basis and 6.2 percent on an organic basis in the second quarter.

Abbott increased its full-year 2022 GAAP earnings per share guidance to at least $3.50. Abbott forecasts specified items for the full-year 2022 of $1.40 per share primarily related to intangible amortization, costs related to a voluntary recall, expenses associated with acquisitions, restructurings and cost reduction initiatives and other net expenses. Excluding specified items, Abbott raised its projected adjusted earnings per share to at least $4.90 for 2022. Analysts expect the company to report profit per share of $4.88.

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