ABB Expected With Higher Earnings Despite Macroeconomic Uncertainty -- Earnings Preview

Dow Jones04-20

By Nina Kienle

ABB is set to kick off earnings season for European industrial companies, with the company scheduled to report first-quarter results on Wednesday. Here is what you need to know:

REVENUE FORECAST: The Switzerland-based technology company is expected to book revenue of $8.43 billion for the period ended March, according to consensus estimates provided by the company. The group reported $7.38 billion in the year-earlier period.

EARNINGS FORECAST: Analysts forecast operational earnings before interest, taxes and amortization of $1.955 billion compared with $1.495 billion the prior year.

NET PROFIT FORECAST: Net profit is seen at $1.39 billion, according to the same consensus. ABB reported $1.10 billion a year earlier.

ABB shares are 25% higher in the year to date.

--Capital-goods companies are well placed despite the economic hit of higher interest rates, higher energy prices and higher inflation, as well as greater pressure on consumers stemming from the conflict in the Middle East, Barclays analysts said in a note to clients. "History suggests that earnings from capital-goods companies tend to benefit from inflationary shocks in the following year, as generally solid pricing power allows the companies to pass on costs and at least maintain profitability in a majority of cases," the analysts added.

--ABB's highly relevant end-market of residential building could be hit in the near-term by a negative impact on consumer spending, RBC Capital Markets analysts Sebastian Kuenne and Nick Housden said. Nevertheless, the company could participate in any rebuild of the oil-and-gas infrastructure in the Middle East region, they added. "We regard the net effect of the Iran conflict on ABB's earnings prospect as limited at this stage."

--ABB is likely viewed as a safe pair of hands by investors, with an execution track record that is justifiably admired, Barclays analysts said. "We see scope for a strong demand cycle ahead, as countries look to diversify energy supply chain risk away from the Middle East," they said. This should help increase already existing strong demand from other heavy-investment sectors like data centers and marine, the analysts added.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

April 20, 2026 04:18 ET (08:18 GMT)

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ABB Expected With Higher Earnings Despite Macroeconomic Uncertainty -- Earnings Preview

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