Abbott Labs Seen Posting Higher 4Q Sales Amid Pending Buyout of Exact Sciences -- Earnings Preview

Dow Jones01-22
 

By Connor Hart

 

Abbott Laboratories is scheduled to report fourth-quarter earnings before the market opens Thursday. Here is what you need to know:

NET INCOME: The healthcare-products maker is projected to post a profit of $2.11 billion, down from a profit of $9.23 billion a year earlier. Last year's comparable quarter included a $7.2 billion tax benefit.

ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are forecast to come in at $1.50 a share. That compares with adjusted earnings of $1.34 a share a year earlier.

REVENUE: Quarterly revenue is expected to be $11.8 billion, up from $10.97 billion last year.

Shares have ebbed 5.6% over the past three months and were recently trading hands at $120.69.

 

WHAT TO WATCH

--Abbott Laboratories in November agreed to acquire cancer-diagnostics company Exact Sciences in a deal valued at about $21 billion, as Abbott looks to compete in the burgeoning market for multicancer early-detection tests. Mizuho analysts expect little pushback to the deal, citing minimal product overlap and sparse antitrust concerns, and they anticipate the deal closing on time, by the second quarter, or earlier. Investors will be looking for any updates on the acquisition.

--While the Mizuho analysts continue to see Abbott and Exact Sciences as being well positioned in the colorectal cancer market, given the bellwether status of Cologuard, they are keeping an eye on how the deal could affect the competitive dynamics in Exact's pipeline businesses in broader oncology. "Abbott owns a multicancer test in Cancerguard and the rights to Freenome's CRC blood test, which could result in favorable competitive positioning, versus as a standalone Exact," they write. "There are also minimal residual disease assets." Investors will be keeping an eye on competitive dynamics as well.

--Abbott, which sells a range of medical products including heart devices and generic drugs, said third-quarter sales growth was driven by its nutrition business, particularly its Ensure brand of nutritional shakes and drinks. Investors will be looking to see whether the segment can continue to drive sales, or if its bull run was short-lived.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

January 21, 2026 13:05 ET (18:05 GMT)

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