Abbott Reports Third-Quarter 2020 Results; Achieves Strong Double-Digit Earnings Growth and Raises Guidance
ABBOTT PARK, Ill., Oct. 21, 2020 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the third quarter ended Sept. 30, 2020.
- Third-quarter worldwide sales of $8.9 billion increased 9.6 percent on a reported basis and 10.6 percent on an organic basis, which excludes the impact of foreign exchange.
- Reported diluted EPS from continuing operations under GAAP was $0.69 and adjusted diluted EPS from continuing operations, which excludes specified items, was $0.98, reflecting 16.7 percent growth versus the prior year.1
- Abbott projects full-year 2020 diluted EPS from continuing operations on a GAAP basis of at least $2.35 and full-year adjusted diluted EPS from continuing operations of at least $3.55.
- In August, Abbott received FDA Emergency Use Authorization for its BinaxNOW™ COVID-19 Ag Card rapid test for the detection of COVID-19 infection. The test delivers results in just 15 minutes with no instrumentation required. Abbott is selling the test for $5 and offers a complementary mobile phone app, called NAVICA™, that allows people who test negative to display their result.
- During the quarter, Abbott launched FreeStyle Libre® 2 and obtained CE Mark for FreeStyle Libre 3, which automatically delivers up-to-the-minute glucose readings, unsurpassed 14-day accuracy2 and real-time glucose alarms in the world's smallest and thinnest3 wearable sensor at the same affordable price4 as previous versions. Abbott also announced CE Mark for its Libre Sense Glucose Sport Biosensor, which helps athletes better understand the efficacy of their nutritional choices on training and athletic performance.
- In September, Abbott obtained CE Mark for MitraClip® G4, its next-generation MitraClip heart device, the leading minimally invasive mitral valve repair device in the world.
"Our strong results and increased guidance are a direct reflection of our ability to innovate and deliver despite challenging conditions," said Robert B. Ford, president and chief executive officer, Abbott. "Our new product pipeline continues to be highly productive, and we're well-positioned to finish the year with a lot of momentum."
THIRD-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business. Organic sales growth excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the third quarter 2020:
Total Company
($ in millions)
% Change vs. 3Q19 | |||||||||||||||||||||
Sales 3Q20 | Reported | Organic | |||||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||||
Total * | 3,329 | 5,524 | 8,853 | 17.4 | 5.4 | 9.6 | 17.4 | 7.0 | 10.6 | ||||||||||||
Nutrition | 818 | 1,106 | 1,924 | 3.7 | 1.9 | 2.6 | 3.7 | 4.4 | 4.1 | ||||||||||||
Diagnostics | 1,133 | 1,507 | 2,640 | 61.4 | 24.8 | 38.2 | 61.4 | 25.6 | 38.8 | ||||||||||||
Established Pharmaceuticals | -- | 1,099 | 1,099 | n/a | (9.3) | (9.3) | n/a | (3.3) | (3.3) | ||||||||||||
Medical Devices | 1,363 | 1,807 | 3,170 | 2.2 | 4.4 | 3.4 | 2.2 | 2.9 | 2.6 | ||||||||||||
* Total Q3 2020 Abbott sales from continuing operations include Other Sales of approximately $20 million. | |||||||||||||||||||||
% Change vs. 9M19 | |||||||||||||||||||||
Sales 9M20 | Reported | Organic | |||||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||||
Total * | 8,823 | 15,084 | 23,907 | 4.6 | (0.4) | 1.3 | 4.6 | 2.4 | 3.2 | ||||||||||||
Nutrition | 2,438 | 3,273 | 5,711 | 5.0 | 1.7 | 3.1 | 5.0 | 4.6 | 4.8 | ||||||||||||
Diagnostics | 2,793 | 3,667 | 6,460 | 31.6 | 3.8 | 14.2 | 31.6 | 6.1 | 15.7 | ||||||||||||
Established Pharmaceuticals | -- | 3,156 | 3,156 | n/a | (4.7) | (4.7) | n/a | 1.3 | 1.3 | ||||||||||||
Medical Devices | 3,562 | 4,968 | 8,530 | (10.3) | (1.9) | (5.6) | (10.3) | (0.8) | (5.0) |
* Total 9M 2020 Abbott sales from continuing operations include Other Sales of approximately $50 million. |
n/a = Not Applicable. |
Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates. |
Third-quarter 2020 worldwide sales of $8.9 billion increased 9.6 percent on a reported basis and 10.6 percent on an organic basis.
Nutrition
($ in millions)
% Change vs. 3Q19 | ||||||||||||||||||||||||||||
Sales 3Q20 | Reported | Organic | ||||||||||||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||
Total | 818 | 1,106 | 1,924 | 3.7 | 1.9 | 2.6 | 3.7 | 4.4 | 4.1 | |||||||||||||||||||
Pediatric | 488 | 518 | 1,006 | 1.9 | (8.3) | (3.7) | 1.9 | (6.2) | (2.5) | |||||||||||||||||||
Adult | 330 | 588 | 918 | 6.5 | 13.0 | 10.6 | 6.5 | 16.0 | 12.4 | |||||||||||||||||||
% Change vs. 9M19 | ||||||||||||||||||||||||||||
Sales 9M20 | Reported | Organic | ||||||||||||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||||||
Total | 2,438 | 3,273 | 5,711 | 5.0 | 1.7 | 3.1 | 5.0 | 4.6 | 4.8 | |||||||||||||||||||
Pediatric | 1,490 | 1,629 | 3,119 | 5.9 | (5.2) | (0.2) | 5.9 | (2.7) | 1.2 | |||||||||||||||||||
Adult | 948 | 1,644 | 2,592 | 3.7 | 9.5 | 7.3 | 3.7 | 13.0 | 9.5 |
Worldwide Nutrition sales increased 2.6 percent on a reported basis and 4.1 percent on an organic basis in the third quarter. Strong U.S. and international sales performance of Ensure®, Abbott's market-leading complete and balanced nutrition brand, led to global Adult Nutrition sales growth of 10.6 percent on a reported basis and 12.4 percent on an organic basis. In Pediatric Nutrition, U.S. sales were led by growth of Pedialyte®, Abbott's oral rehydration brand, and PediaSure®. Internationally, Pediatric Nutrition growth in Southeast Asia was offset by challenging conditions in Greater China.
Diagnostics
($ in millions)
% Change vs. 3Q19 | ||||||||||||||||||||||||
Sales 3Q20 | Reported | Organic | ||||||||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||
Total | 1,133 | 1,507 | 2,640 | 61.4 | 24.8 | 38.2 | 61.4 | 25.6 | 38.8 | |||||||||||||||
Core Laboratory | 284 | 892 | 1,176 | 4.6 | (1.5) | (0.1) | 4.6 | (0.3) | 0.8 | |||||||||||||||
Molecular | 220 | 238 | 458 | 536.1 | 211.9 | 313.1 | 536.1 | 212.7 | 313.6 | |||||||||||||||
Point of Care | 96 | 35 | 131 | (15.2) | 10.6 | (9.6) | (15.2) | 9.8 | (9.7) | |||||||||||||||
Rapid Diagnostics | 533 | 342 | 875 | 88.3 | 75.9 | 83.2 | 88.3 | 75.3 | 83.0 | |||||||||||||||
% Change vs. 9M19 | ||||||||||||||||||||||||
Sales 9M20 | Reported | Organic | ||||||||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||||||||
Total | 2,793 | 3,667 | 6,460 | 31.6 | 3.8 | 14.2 | 31.6 | 6.1 | 15.7 | |||||||||||||||
Core Laboratory | 840 | 2,312 | 3,152 | 5.9 | (11.6) | (7.5) | 5.9 | (9.2) | (5.7) | |||||||||||||||
Molecular | 429 | 527 | 956 | 279.5 | 147.2 | 193.0 | 279.5 | 152.1 | 196.2 | |||||||||||||||
Point of Care | 278 | 109 | 387 | (17.1) | 22.4 | (8.8) | (17.1) | 23.8 | (8.5) | |||||||||||||||
Rapid Diagnostics | 1,246 | 719 | 1,965 | 41.5 | 16.4 | 31.1 | 41.5 | 18.3 | 31.9 |
Worldwide Diagnostics sales increased 38.2 percent on a reported basis in the third quarter and increased 38.8 percent on an organic basis. Strong growth in the quarter was driven by demand for Abbott's portfolio of COVID-19 diagnostics tests on its lab-based immunoassay and molecular diagnostics systems and point-of-care rapid testing platforms. Global COVID-19 testing-related sales were $881 million in the quarter.
Established Pharmaceuticals
($ in millions)
% Change vs. 3Q19 | |||||||||||||||||||||||||
Sales 3Q20 | Reported | Organic | |||||||||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||||||||
Total | -- | 1,099 | 1,099 | n/a | (9.3) | (9.3) | n/a | (3.3) | (3.3) | ||||||||||||||||
Key Emerging Markets | -- | 799 | 799 | n/a | (10.3) | (10.3) | n/a | (1.8) | (1.8) | ||||||||||||||||
Other | -- | 300 | 300 | n/a |
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