North Chicago, Illinois-based Abbott Laboratories (ABT) discovers, develops, manufactures, and sells healthcare products. Valued at $196.2 billion by market cap, ABT is a global leader in the large and growing in-vitro diagnostic market and its products include pharmaceuticals, nutritional, diagnostics, and vascular products. The medical device manufacturer is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Wednesday, Jan. 22.
Ahead of the event, analysts expect ABT to report a profit of $1.34 per share on a diluted basis, up 12.6% from $1.19 per share in the year-ago quarter. The company has consistently beat or matched Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect ABT to report EPS of $4.67, up 5.2% from $4.44 in fiscal 2023. Its EPS is expected to rise 10.1% year over year to $5.14 in fiscal 2025.
ABT stock has underperformed the S&P 500’s ($SPX) 23.7% gains over the past 52 weeks, with shares up 3.3% during this period. However, it outperformed the Health Care Select Sector SPDR Fund’s (XLV) marginal losses over the same time frame.
ABT has been underperforming due to industrywide challenges such as margin pressure, inflation, labor shortages, supply chain disruptions, and the need to adapt to advancing technologies. The company has seen a decline in COVID testing demand, leading to lower sales in its diagnostics segment. Additionally, unfavorable foreign exchange impacts and higher raw material and freight costs have contributed to Abbott's underperformance.
On Oct. 16, ABT shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $1.21 topped Wall Street expectations of $1.20. The company’s revenue was $10.64 billion, surpassing Wall Street forecasts of $10.56 billion. ABT expects full-year adjusted EPS to be between $4.64 and $4.70.
Analysts’ consensus opinion on ABT stock is bullish, with a “Strong Buy” rating overall. Out of 24 analysts covering the stock, 16 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and six give a “Hold.” ABT’s average analyst price target is $132.95, indicating a potential upside of 17.2% from the current levels.
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