Zinger Key Points
- Q3 sales reached $10.64 billion, up 4.9% year over year, exceeding the $10.55 billion consensus.
- Adjusted EPS projected at $4.64-$4.70 for 2024, signaling positive growth trajectory.
On Wednesday, Abbott Laboratories ABT reported third-quarter sales of $10.64 billion, up 4.9% year over year, beating the consensus of $10.55 billion.
Organic sales growth for the underlying base business was 8.2%, led by double-digit growth in Medical Devices. Abbott’s adjusted diluted earnings per share was $1.21, beating the analyst estimates of $1.20.
Abbott projects full-year 2024 adjusted EPS of $4.64-$4.70 versus prior guidance of $4.61-$4.71 and consensus of $4.66. It forecasts fourth-quarter adjusted EPS of $1.31-$1.37 versus the consensus of $1.20.
William Blair anticipates that Abbott will return to a more typical pattern of double-digit earnings growth in the fourth quarter, a trend that is expected to continue into 2025 as the company moves past the impacts of the “COVID-cloud” management mentioned earlier.
Looking ahead to 2025, the analyst writes that Abbott has built a robust pipeline of products poised to drive a high-single-digit growth rate, an acceleration compared to pre-COVID levels.
William Blair notes that the investment landscape remains attractive, particularly given Abbott’s valuation compared to other large-cap MedTech peers experiencing similar growth.
The analyst anticipates a potential upside in EPS if macroeconomic headwinds diminish in the coming quarters, viewing 2024 as a transitional year leading to a resurgence in low-double-digit earnings growth by 2025.
Given that the stock is currently trading at 22.8 times William Blair’s 2025 EPS estimate of $5.16, the analyst maintains an Outperform rating on Abbott.
Abbott Laboratories Stock Prediction For 2024
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Abbott Laboratories, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Abbott Laboratories, the 200-day moving average sits at $110.38, according to Benzinga Pro, which is below the current price of $117.31. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
Price Action: ABT stock is down 0.22% at $117.56 at the last check on Thursday.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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