Abbott Laboratories (NYSE:ABT) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a credible result overall, with revenues of US$40b and statutory earnings per share of US$3.26 both in line with analyst estimates, showing that Abbott Laboratories is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Abbott Laboratories
Taking into account the latest results, the most recent consensus for Abbott Laboratories from 20 analysts is for revenues of US$41.9b in 2024. If met, it would imply a reasonable 4.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.8% to US$3.45. In the lead-up to this report, the analysts had been modelling revenues of US$41.7b and earnings per share (EPS) of US$3.39 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$123. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Abbott Laboratories analyst has a price target of US$141 per share, while the most pessimistic values it at US$100.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. 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 7.9% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% per year. 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Abbott Laboratories' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$123, with the latest estimates not enough to have an impact on their price targets.
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..
Even so, be aware that Abbott Laboratories is showing 1 warning sign in our investment analysis , you should know about...
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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.