Yahoo Finance Results: Abbott Laboratories Beat Earnings Expectations And Analysts Now Have New Forecasts
Abbott Laboratories (NYSE:ABT) shareholders are probably feeling a little disappointed, since its shares fell 5.5% to US$105 in the week after its latest quarterly results. Abbott Laboratories reported US$10.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.70 beat expectations, being 6.2% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Abbott Laboratories
Taking into account the latest results, the consensus forecast from Abbott Laboratories' 23 analysts is for revenues of US$41.7b in 2024. This reflects a modest 3.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 5.7% to US$3.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$42.0b and earnings per share (EPS) of US$3.47 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$126, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Abbott Laboratories analyst has a price target of US$141 per share, while the most pessimistic values it at US$104. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Abbott Laboratories' revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2024 being well below the historical 7.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Abbott Laboratories is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Abbott Laboratories going out to 2026, and you can see them free on our platform here..
It might also be worth considering whether Abbott Laboratories' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
