Key insights
- Abbott beat Q1 revenue and EPS estimates, driven by its medical device unit and recent acquisition. However, ABT shares fell pre-market after the company lowered its 2026 profit forecast by $0.20 due to the Exact Sciences acquisition. This news has a slightly negative impact on US equities, reflecting concerns about integration costs and long-term profitability.
April 16 (Reuters) - Abbott marginally beat Wall Street estimates for quarterly profit and revenue on Thursday, partially helped by its newly acquired cancer diagnostics business.
However, its shares were down 2% before the bell, after the company said its 2026 profit forecast will see a 20 cent hit due to its recent $23 billion acquisition of cancer test maker Exact Sciences.
The medical device maker expects adjusted profit per share between $5.38 to $5.58 for 2026, compared with its previous forecast of $5.55 to $5.80 per share.
Despite the hit, CEO Robert Ford said the acquisition of Exact Sciences adds another high-growth business to the company's portfolio.
The company also benefited from continued strength in its medical device unit, its largest in terms of revenue.
On an adjusted basis, the company reported first-quarter profit per share of $1.15, compared with analysts' estimate of $1.14, according to data compiled by LSEG.
Total revenue came in at $11.16 billion in the first quarter, compared with expectations of $11 billion.
(Reporting by Siddhi Mahatole and Puyaan Singh in Bengaluru; Editing by Devika Syamnath)