Investing
Earnings Previews: Abbott Labs, Baker Hughes, Procter & Gamble
April 18, 2022 12:18 pm
Before markets opened on Monday, Bank of America reported first-quarter results that beat both revenue and profit estimates, and shares traded up about 1%. Bank of New York Mellon reported inline profits but missed slightly on revenue. Shares traded down about 4% Monday morning.
Charles Schwab missed on both the top and bottom lines, and the shares traded down more than 5%. Synchrony Financial beat both profit and revenue estimates and announced a further $2.8 billion in share buybacks. The stock traded up more than 3%.
This week we expect to get earnings reports from a variety of industries, including more airlines, mining companies and energy companies. A couple of Dow Jones industrials stocks are on tap for Friday, and Tesla will report results after markets close Wednesday.
We already have previewed four companies set to report results before Tuesday’s opening bell (Halliburton, Johnson & Johnson, Lockheed Martin and Truist) and three tech companies that report late Tuesday or early Wednesday (ASML, IBM and Netflix).
Here are three more companies scheduled to report results first thing Wednesday morning.
Medical device and generic drug maker Abbott Laboratories (NYSE: ABT) has dropped about 4.9% from its stock price over the past 12 months, including a year-to-date dive of around 16.5 percentage points. The company has beaten sales and earnings estimates in eight of the past nine quarters. Shares are currently trading at about the same level as they were late last October, a couple of months before posting a 52-week high. The company’s Binax COVID-19 tests have pushed the stock higher, too, but the market for those tests is expected to shrink sharply over the next few years.
Among 22 analysts covering the stock, 17 have given the stock a Buy or Strong Buy rating and three more rate the stock at Hold. The consensus price target is $140.00, and with shares trading at around $116.75, the upside potential is 19.9%. At the high target of $154.00, the upside potential increases to 31.9%.
First-quarter revenue is forecast to slide by about 3.4% sequentially to $11.02 billion and to increase by about 5.6% year over year. Adjusted earnings per share (EPS) are forecast at $1.47, up about 11.3% both sequentially and year over year. For the full 2022 fiscal year, analysts are looking for EPS of $4.84, down about 7.1%, on revenue of $40.87 billion, down 5.1%.
The stock trades at 24.1 times expected 2022 EPS, 22.8 times estimated 2023 earnings of $5.12 and 20.8 times estimated 2024 earnings of $5.61 per share. The stock’s 52-week range is $105.36 to $142.60, and the company pays an annual dividend of $1.82 (yield of 1.61%). Total shareholder return for the past 12 months was negative 4.8%.
Over the past 12 months, shares of oilfield services firm Baker Hughes Co. (NASDAQ: BKR) have added about 92%. Although services companies took a bit longer to skyrocket (they did not take off until December), once they took off, the climb was steep and fast. Rival Halliburton reports quarterly results Tuesday morning, and the industry’s biggest player, Schlumberger, reports Friday morning. Capital returns should increase when General Electric sells its remaining stake in the company over the next couple of months.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.