Summary
Abbott Laboratories (ABT) filed an 8-K on April 16, 2014, to report its first-quarter 2014 financial results. The key takeaway for investors is the company's use of non-GAAP financial measures to present its earnings, which management believes offer better insight into ongoing operational performance. These measures exclude items such as restructuring costs, tax law changes, one-time repatriation of foreign earnings, and resolution of prior tax positions, as well as intangible amortization. While Abbott's management uses these non-GAAP figures to assess performance internally and encourages investors to consider them for a clearer view of underlying business trends, the company explicitly advises investors to view these measures alongside, and not as a replacement for, their GAAP-compliant financial statements. The filing primarily serves to announce these results and provides a press release (Exhibit 99.1) containing the detailed financial information.
Key Highlights
- 1Abbott Laboratories announced its Q1 2014 financial results on April 16, 2014.
- 2The company is utilizing non-GAAP financial measures in its earnings release.
- 3Non-GAAP measures exclude specific items like restructuring costs and certain tax-related expenses.
- 4Intangible amortization is also excluded in the non-GAAP presentation.
- 5Management believes these non-GAAP measures provide better visibility into ongoing business performance.
- 6Investors are cautioned to consider non-GAAP measures in conjunction with, not as a substitute for, GAAP measures.
- 7The filing includes a press release (Exhibit 99.1) with the detailed financial results.