The Abbott Laboratories (NYSE:ABT) Full-Year Results Are Out And Analysts Have Published New Forecasts

The yearly results for Abbott Laboratories (NYSE:ABT) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of US$40b and statutory earnings per share of US$3.26. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Abbott Laboratories

Taking into account the latest results, the consensus forecast from Abbott Laboratories' 20 analysts is for revenues of US$41.9b in 2024. This reflects a credible 4.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 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. 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.

The analysts reconfirmed their price target of US$123, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. 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. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Abbott Laboratories.

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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Abbott Laboratories going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Abbott Laboratories .

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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.