A Glimpse of AbbVie's Earnings Potential

AbbVie ABBV is gearing up to announce its quarterly earnings on Friday, 2025-04-25. Here's a quick overview of what investors should know before the release.

Analysts are estimating that AbbVie will report an earnings per share (EPS) of $2.51.

Anticipation surrounds AbbVie's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

The company's EPS missed by $0.10 in the last quarter, leading to a 0.0% drop in the share price on the following day.

Here's a look at AbbVie's past performance and the resulting price change:

Stock Performance

Shares of AbbVie were trading at $177.05 as of April 23. Over the last 52-week period, shares are up 10.83%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on AbbVie

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding AbbVie.

The consensus rating for AbbVie is Outperform, derived from 15 analyst ratings. An average one-year price target of $216.47 implies a potential 22.26% upside.

Comparing Ratings with Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Amgen, Gilead Sciences and Vertex Pharmaceuticals, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Amgen, with an average 1-year price target of $309.43, suggesting a potential 74.77% upside.
• Analysts currently favor an Outperform trajectory for Gilead Sciences, with an average 1-year price target of $117.07, suggesting a potential 33.88% downside.
• Analysts currently favor an Neutral trajectory for Vertex Pharmaceuticals, with an average 1-year price target of $479.06, suggesting a potential 170.58% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Amgen, Gilead Sciences and Vertex Pharmaceuticals, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

AbbVie ranks at the bottom for Revenue Growth and Gross Profit, while it ranks at the top for Return on Equity.

Get to Know AbbVie Better

AbbVie is a pharmaceutical firm with a strong exposure to immunology (with Humira, Skyrizi, and Rinvoq) and oncology (with Imbruvica and Venclexta). The company was spun off from Abbott in early 2013. The 2020 acquisition of Allergan added several new products and drugs in aesthetics (including Botox).

Financial Insights: AbbVie

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Positive Revenue Trend: Examining AbbVie's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.6% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: AbbVie's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -0.21%, the company may face hurdles in effective cost management.

Return on Equity (ROE): AbbVie's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of -0.68%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): AbbVie's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.02%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 20.19, caution is advised due to increased financial risk.

To track all earnings releases for AbbVie visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.