Earnings Previews: Abbott Labs, ASML, Baker Hughes, Morgan Stanley

In mid-morning trading on Monday, the Dow Jones industrials were up 0.04% while the S&P 500 was down 0.07% and the Nasdaq 0.22% lower.

Before markets opened on Monday, M&T Bank posted better-than-expected profits thanks to higher interest rates. Net interest income doubled to $1.83 billion year over year, even though deposits dropped by 3%. The stock traded up about 1.4% Monday morning.

Charles Schwab beat the consensus earnings per share (EPS) estimate but missed slightly on revenue. Shares traded up about 3.3%.

State Street failed to meet or beat EPS and revenue expectations. Net interest income rose about 50% year over year, but net income overall was down more than 9%. The stock hammered Monday morning, down 12.5%.

Bank of America, BNY Mellon and Goldman Sachs are scheduled to report first-quarter earnings before U.S. markets open on Tuesday, along with Ericsson, Johnson & Johnson and Lockheed Martin. later that day, look for reports from Netflix, United Airlines and Western Alliance Bancorp.

Here is a look at four companies set to report first-quarter results first thing Wednesday morning.

Abbott Labs

Medical device and generic drug maker Abbott Laboratories (NYSE: ABT) has dropped more than 11% from its stock price over the past 12 months. The stock hit a 52-week low in late October and has bounced to a 10% gain since.

Abbott stock was up about 20% from its low in late January before the company revealed that the U.S. Federal Trade Commission had filed a civil investigative demand for information related to issues with the company’s baby formula. The company also faces a criminal investigation by the Department of Justice and numerous civil lawsuits related to its infant formula.

Among 24 analysts covering the stock, 18 have a Buy or Strong Buy rating and five more rate it at Hold. The median price target is $118.00, and with shares currently around $104.70, the upside potential is 12.7%. At the high target of $136.00, the upside potential increases to 29.9%.

First-quarter revenue is forecast to drop sequentially by about 4.4% to $9.64 billion and to decrease by 23.3% year over year. Adjusted EPS are forecast at $0.98, down by 4.6% sequentially and by 43.3% year over year. For the full 2023 fiscal year, analysts are looking for adjusted EPS of $4.39, down 17.8%, on revenue of $39.86 billion, down 8.7%.

Abbott Labs stock trades at 23.8 times expected 2023 EPS, 21.9 times estimated 2024 earnings of $4.77 and 19.0 times estimated 2025 earnings of $5.51 per share. The stock’s 52-week trading range is $93.25 to $124.35, and the company pays an annual dividend of $2.04 (yield of 1.96%). Total shareholder return for the past 12 months was negative 9.49%.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.