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AbbVie Inc. (ABBV), a top global pharmaceutical company with a market cap of $300 billion, specializes in developing and manufacturing a wide range of therapeutic products. The North Chicago, Illinois-based company is expected to announce its fiscal Q2 earnings results before the market opens on Thursday, Jul. 25.
Ahead of this event, analysts expect the pharmaceutical giant to report a profit of $2.58 per share, down 11.3% from $2.91 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. The company reported EPS of $2.31 in the most recent quarter, exceeding the consensus estimate by 2.2% due to the strong sales performance of Skyrizi and cancer drug Imbruvica.
For fiscal 2024, analysts expect ABBV to report EPS of $10.73, down 3.4% from $11.11 in fiscal 2023. However, looking forward to fiscal 2025, EPS is expected to grow by 12.8% annually to $12.10.
On a YTD basis, ABBV saw a 9.6% increase, trailing the S&P 500 Index's ($SPX) 17.1% rise but surpassing the 8% gain of the S&P 500 Healthcare Sector SPDR (XLV) over the same period.
AbbVie's stock flew higher in early February following better-than-expected Q4 earnings and optimistic price target increases from analysts, fueled by strong performance in its immunology products and a positive outlook for 2024 earnings. However, the stock tumbled 4.6% on Apr. 26 despite beating earnings expectations in Q1, driven by concerns over a projected 32% decline in U.S. sales of its blockbuster drug Humira for Q2. Investors reacted adversely to the anticipated impact of increased competition from biosimilars and shift to newer medications like Skyrizi and Rinvoq.
Analysts' consensus rating on AbbVie stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 22 analysts covering the stock, opinions include 13 "Strong Buys," two "Moderate Buys," and seven "Holds." This configuration is more bullish than three months ago, with 12 analysts suggesting a "Strong Buy."
The average analyst price target for ABBV is $181.67, suggesting a potential upside of 6.9% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
