Abbott Laboratories (ABT) Q4 2020 earnings summary

Executive summary

• 2020 net sales were $34.608B, up 8.5% reported and 9.8% organically; adjusted ongoing EPS increased 12.7%.

• Rapid and molecular COVID-19 testing more than offset pandemic-driven declines in routine testing and cardiovascular and neuromodulation procedures.

• Twelve COVID-19 tests launched, and more than 400M tests were provided during the year.

Financial highlights

• Net sales reached $34.608B versus $31.904B in 2019; net earnings were $4.495B versus $3.687B.

• Continuing-operations diluted EPS was $2.49 versus $2.06; total diluted EPS was $2.50 versus $2.06.

• Operating earnings were $5.357B; operating margin was 15.5%, up from 14.2% in 2019.

• Gross profit margin was 50.5%, down from 52.5%; operating cash flow was $7.901B versus $6.136B.

Outlook and guidance

• 2021 priorities include meeting COVID-19 test demand and expanding Alinity adoption, diabetes care, structural heart, electrophysiology, heart failure, nutrition and emerging-market pharmaceuticals.

• R&D spending is expected to approximate 7.0% of 2021 sales; 2021 pension contributions are expected to be ~$410M.

• The 2021 quarterly dividend rose 25% to $0.45 per share, effective with the February 2021 payment.