Abbott Laboratories Gears Up for Q4 Earnings with Analysts Optimistic
Company Overview and Upcoming Earnings Report
North Chicago, Illinois-based Abbott Laboratories (ABT) is a major player in the healthcare sector, known for discovering, developing, manufacturing, and selling various healthcare products. With a market cap of $196.2 billion, Abbott stands out in the expanding in-vitro diagnostic market, offering pharmaceuticals, nutritional products, diagnostics, and vascular solutions. The company is set to reveal its fiscal fourth-quarter earnings for 2024 before the market opens on Wednesday, January 22.
Projected Earnings and Fiscal Expectations
As the earnings report approaches, analysts predict ABT will post a profit of $1.34 per share on a diluted basis, reflecting a 12.6% increase from last year’s $1.19 per share. Over the last four quarters, Abbott has consistently met or exceeded Wall Street’s earnings per share (EPS) estimates.
For the entire fiscal year, expectations point to an EPS of $4.67, which is a 5.2% rise from the previous year’s $4.44. Looking ahead, analysts foresee an even more significant jump of 10.1% to $5.14 for fiscal 2025.
Stock Performance Compared to the Market
ABT’s stock performance has lagged behind the S&P 500’s ($SPX) impressive gains of 23.7% over the past year, seeing only a 3.3% increase itself. Nonetheless, it has fared better than the Health Care Select Sector SPDR Fund (XLV), which recorded slight losses during the same period.
Challenges Facing Abbott Laboratories
Several widespread challenges have impacted Abbott’s recent performance. The company has dealt with margin pressures, inflation, labor shortages, and supply chain disruptions, all while trying to keep pace with technological advancements. A decline in demand for COVID testing has particularly affected revenues in Abbott’s diagnostics division. Additionally, unfavorable foreign exchange rates and rising costs for raw materials and freight have played a role in the company’s struggles.
Recent Earnings Report and Analyst Sentiment
On October 16, ABT saw a rise of over 1% after announcing its Q3 earnings, which included an adjusted EPS of $1.21, surpassing Wall Street’s expectation of $1.20. The company reported revenue of $10.64 billion, also exceeding predictions of $10.56 billion, and expects adjusted EPS for the full year to range between $4.64 and $4.70.
Analysts maintain a generally optimistic outlook on ABT stock, rating it as a “Strong Buy” overall. Out of 24 analysts monitoring the stock, 16 support a “Strong Buy,” while two recommend a “Moderate Buy,” and six suggest holding. The average analyst price target is $132.95, suggesting a potential upside of 17.2% from current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
