Abbott Laboratories Reports Strong Q1 Results, Despite Revenue Drop
On April 19th, Abbott Laboratories (NYSE: ABT) reported their first-quarter earnings for 2023. The healthcare product manufacturer had a strong quarter, posting earnings per share of $1.03, beating analysts’ estimates by $0.05. However, the company faced a decline in revenue compared to analyst estimates, bringing in $9.75 billion during the quarter as opposed to the projected $9.64 billion.
Despite the revenue drop of 18.1% on a year-over-year basis, Abbott Laboratories managed to maintain a net margin of 13.98% and a return on equity of 22.48%. These figures are impressive in light of the difficult environment they operate in.
Alongside this positive news came an announcement that director Daniel J. Starks had sold 50,000 shares of ABT stock at an average price of $111.02 per share on May 2nd resulting in a total transaction amount of $5,551,000.00.
Furthermore, executive vice president Andrea F Wainer also sold 8,226 shares of ABT stock on May 2nd at an average price of $110.56 per share for a total transaction amount of $909,466.56.
In total over the last ninety days insiders have sold just under two-thousandth (1/1000) percent of company stock valued at around seven-tenths (7/10) of one percent (1%) of the market capitalisation indicating confidence in current values and divesting only small amounts.
ABT opened at $111.26 per share on Monday and currently has a market capitalization worth over $193 billion with its P/E ratio standing at 33.82 – both indicators that this is one firm with whom investors can trust their investment strategies knowing that it has reliably exceeded its expected performance metrics in the past.
Zacks Research Report on Abbott Laboratories’ Earnings and Growth Projections for 2023-2025[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”ABT” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]
Abbott Laboratories (NYSE:ABT) has recently been the subject of a report by Zacks Research, which outlines the anticipated earnings and stock value for the healthcare product maker. According to the research, Abbott is predicted to earn $1.02 per share during Q2 2023 and is expected to maintain a full-year earnings estimate of $4.38 per share. The report also indicates that ABT’s Q3 and Q4 2023 earnings are estimated at $1.09 EPS and $1.18 EPS, respectively.
Furthermore, in an effort to provide investors with insight into future growth potential, Zacks’ analysts projected ABT’s earnings throughout fiscal year 2024-2025. These estimates include: FY2023 earnings at $4.33 EPS; Q1 2024 at $0.96 EPS; Q2 2024 at $1.17 EPS; Q3 2024 at $1.09 EPS; Q4 2024 at $1.28 EPS; FY2024 earnings at $4.50 EPS; Q1 2025 earnings at $1.24 EPS and FY2025 earnings at $5.00 EPS.
Numerous research firms have also provided their own analysis on ABT’s potential market value, including Citigroup who increased their target price from $125 to $130, giving the company a “buy” rating on April 19th, 2019, while JPMorgan Chase & Co recommended it as an overweight stock with a target price of up to `$122`. Wolfe Research had less confidence in ABT’s performance on April 20th, recommending it as an “underperform” stock with a lowered target price from `$107` to `$103`.
There has been notable interest in purchasing shares of Abbott Laboratories lately among institutional investors and hedge funds because altshuler Shaham Ltd acquired new stakes in Abbott Laboratories during the fourth quarter worth over $28,000 while FWL Investment Management LLC acquired a new position in shares of Abbott Laboratories during the fourth quarter valued at about $33,000. Moreover, this follows trends identified by Zacks Research which recorded that approximately 72.93% of ABT’s stocks are essentially owned by institutional investors.
Overall, it appears that Abbott Laboratories has remained attractive to investors in light of its predicted earnings potential and growth opportunities over the next few fiscal years. As such, the company continues to be recommended as a safe bet by industry leaders and an advantageous choice for those looking for investment opportunities within the healthcare product field.