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

Investing

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Published: April 17, 2023 11:15 am

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.
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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%.