Abbott (ABT) Q1 2020 earnings

0
75


Abbott Laboratories stocks appeared in the trade before the market Thursday after posting a 16% drop in quarterly profits in part due to a tax expenditure and hanging on forecasts for the full year, citing l uncertainty surrounding the coronavirus epidemic.

The medical device company has launched three coronavirus tests in the United States, including a new test that shows whether a person has antibodies to the virus, indicating that it has already been and that it was asymptomatic or recovered .

Even though President Donald Trump and others are enthusiastic that Abbott’s tools could be effective in fighting the epidemic, the company is suspending its guidelines for the year due to “uncertainties about the duration and the impact of the coronavirus’ as sales for some of its other diagnostic tests fall.

“First of all, I want to thank our employees, customers and suppliers for their extraordinary efforts to maintain the supply of our critically important products to the people who need them, all over the world,” said Abbott President and CEO Robert Ford in a press release. “This is an unprecedented period and our colleagues are tackling it in an unprecedented way. “

The company’s bottom line fell to $ 564 million, or 31 cents per share, in the first quarter ended March 31, from $ 672 million, or 38 cents per share, a year earlier.

Net sales rose 2.5% to $ 7.73 billion, ahead of the average estimate of $ 7.34 billion.

On an adjusted basis, the company reported earnings per share of 65 cents in the first quarter, higher than analysts polled by Refinitiv at 58 cents.

The stock rose more than 1% after briefly falling half a percent in the pre-market trade.

Leaders hold a conference call with Wall Street analysts at 9:00 a.m. EDT.

Reuters contributed to this article.

This is a developing story. Please check back for updates.

Read live updates from CNBC for the latest news on the Covid epidemic -19.

LEAVE A REPLY

Please enter your comment!
Please enter your name here