A Glimpse of Abbott Laboratories's Earnings Potential

Abbott Laboratories ABT will release its quarterly earnings report on Wednesday, 2024-10-16. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Abbott Laboratories to report an earnings per share (EPS) of $1.20.

The market awaits Abbott Laboratories's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

The company's EPS beat by $0.04 in the last quarter, leading to a 1.96% increase in the share price on the following day.

Here's a look at Abbott Laboratories's past performance and the resulting price change:

Tracking Abbott Laboratories's Stock Performance

Shares of Abbott Laboratories were trading at $116.7 as of October 14. Over the last 52-week period, shares are up 22.48%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Abbott Laboratories

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Abbott Laboratories.

With 9 analyst ratings, Abbott Laboratories has a consensus rating of Outperform. The average one-year price target is $128.22, indicating a potential 9.87% upside.

Comparing Ratings with Competitors

The analysis below examines the analyst ratings and average 1-year price targets of Intuitive Surgical, Stryker and Boston Scientific, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Intuitive Surgical is maintaining an Buy status according to analysts, with an average 1-year price target of $505.74, indicating a potential 333.37% upside.
• For Stryker, analysts project an Buy trajectory, with an average 1-year price target of $377.62, indicating a potential 223.58% upside.
• Boston Scientific is maintaining an Buy status according to analysts, with an average 1-year price target of $89.57, indicating a potential 23.25% downside.

Peer Metrics Summary

The peer analysis summary presents essential metrics for Intuitive Surgical, Stryker and Boston Scientific, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Abbott Laboratories ranks in the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the bottom compared to its peers.

Unveiling the Story Behind Abbott Laboratories

Abbott manufactures and markets cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, continuous glucose monitors, and immunoassays and point-of-care diagnostic equipment. Abbott derives approximately 60% of sales outside the United States.

Breaking Down Abbott Laboratories's Financial Performance

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3 months period, Abbott Laboratories showcased positive performance, achieving a revenue growth rate of 4.0% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Abbott Laboratories's net margin is impressive, surpassing industry averages. With a net margin of 12.55%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Abbott Laboratories's ROE excels beyond industry benchmarks, reaching 3.33%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.79%, the company showcases effective utilization of assets.

Debt Management: Abbott Laboratories's debt-to-equity ratio is below the industry average at 0.38, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Abbott Laboratories visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.