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North Chicago-based AbbVie Inc. (ABBV) is a research-based biopharmaceutical company that is engaged in the development and sale of pharmaceutical products. With a market cap of $342.9 billion, AbbVie operates as one of the world’s largest pharma companies. It is expected to release its Q3 earnings before the market opens on Wednesday, Oct. 30.
Ahead of the event, analysts expect AbbVie to report a profit of $2.94 per share, marginally down from $2.95 per share reported in the year-ago quarter. The company has exceeded Wall Street’s adjusted EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter declined 8.9% year-over-year to $2.65 but surpassed the consensus estimates by 3.1%.
For fiscal 2024, analysts expect AbbVie to report an adjusted EPS of $10.84, down 2.4% from $11.11 in fiscal 2023. However, in fiscal 2025, its adjusted EPS is expected to grow 11.6% year over year to $12.10.
ABBV has gained 25.3% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 21.9% gains and the Health Care Select Sector SPDR Fund’s (XLV) 12.8% returns during the same time frame.
Shares of AbbVie surged 3.4% after the release of its Q2 earnings on July 25. The company reported a notable 4.3% year over year revenue growth to $14.5 billion, exceeding Wall Street’s topline estimates.
Although the company experienced a 32.3% decline in net earnings to $1.4 billion, it surpassed the estimates. Moreover, the drop in earnings was primarily due to the $937 million spent on collaborations, licensing agreements or other asset acquisitions recorded as acquired IPR&D and milestones expense.
Additionally, AbbVie improved its full-year adjusted EPS guidance from the previously announced $10.61 to $10.81 range to the range $10.71 to $10.91, bolstering investor confidence.
The consensus opinion on ABBV stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 22 analysts covering the stock, 13 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and seven advise a “Hold” rating.
The mean price target of $201.23 suggests a potential upside of 3.6% from current price levels.
On the date of publication, Aditya Sarawgi 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.
