Abbott narrows 2012 guidance, announces more layoffs and tempers M&A outlook
Abbott's stock slides more than 4% following a narrowed earnings outlook for 2012, news of more layoffs and a "nothing big" strategy for mergers and acquisitions.
Healthcare giant Abbott (NYSE:ABT) saw shares drop more than 4% this morning following announcements from its 3rd quarter earnings report, including narrowed guidance for 2012, a tempered M&A outlook and news of layoffs of over 500 with more on the way.
Abbott, which says it's on track to complete its split on January 1, beat Wall Street's expectations and delivered double-digit growth in earnings per share during the 3 months ended Sept. 30, 2012. The company also narrowed its 2012 outlook, previously in the range of $5.00 to $5.10 per share, to a tighter range of $5.06 to $5.08.
The company also cut 550 positions, most of them unrelated to previous restructuring efforts, and expects additional layoffs over the next year.
"Several hundred will be impacted through 2013," spokeswoman Ann Smith told MassDevice.com today.