North Chicago, Illinois-based AbbVie Inc. (ABBV) focuses on creating medicines and solutions that address complex health issues and enhance people's lives through its core therapeutic areas: immunology, oncology, neuroscience, eye care, aesthetics and more. With a market cap of $310.2 billion, AbbVie operates as one of the largest biopharmaceutical companies in the world.
The pharma giant is gearing up to announce its fourth-quarter results before the market opens on Friday, Jan. 31. Ahead of the event, analysts expect AbbVie to report a non-GAAP profit of $2.10 per share, down 24.7% from $2.79 per share reported in the year-ago quarter. The company has a robust earnings surprise history. It has surpassed Wall Street’s bottom-line estimates in each of the past four quarters. Its adjusted EPS for the last reported quarter grew 1.7% year-over-year to $3.00, exceeding analysts’ estimates by 2.7%.
For the full fiscal 2024, AbbVie is expected to deliver an adjusted EPS of $10.06, down 9.5% from $11.11 in fiscal 2023. While in fiscal 2025, its earnings are expected to rebound 21.6% year-over-year to $12.23 per share.
ABBV stock has gained 5.5% over the past 52-week period, outpacing the Healthcare Select Sector SPDR Fund’s (XLV) marginal gains but underperforming the S&P 500 Index’s ($SPX) 24.4% surge during the same time frame.
AbbVie stock price soared 6.4% after the release of its better-than-expected Q3 results on Oct. 30. Driven by notable gains in its immunology, oncology, and neuroscience portfolios, the company reported a 3.8% year-over-year growth in net revenues to $14.5 billion, exceeding Wall Street’s expectations. Meanwhile, due to a staggering 35.1% decrease in COGS, its operating profits surged nearly 68% year-over-year to $3.8 billion. Observing its business momentum, AbbVie raised its earnings guidance, boosting investor confidence.
On Nov. 11, ABBV stock plunged 12.6% after emraclidine, an experimental schizophrenia drug it acquired last year for $8.7 billion, failed two mid-stage studies. This event wiped out nearly $40 billion of AbbVie’s market capitalization.
Nonetheless, analysts remain bullish about the stock’s long-term prospects. ABBV has a consensus “Moderate Buy” rating overall. Out of the 27 analysts covering the stock, 17 suggest “Strong Buy,” two advise “Moderate Buy,” and eight recommend “Hold” rating. The mean price target of $205.41 indicates a 19.9% upside potential from current price levels.
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