AbbVie (ABBV) Earnings Preview: Buy or Sell Opportunities

AbbVie Inc. (ABBV) has revised upwards its 2023 forecast for adjusted earnings per share (EPS) from the previously suggested range of $10.86-$11.06 to a new range of $11.19-$11.23. The pharmaceutical giant also raised its adjusted diluted EPS guidance floor for the full year 2024 from $10.70 to $11.00.

In addition to the raised guidance, the firm announced a 4.7% uptick in its 2024 dividend, which will come into effect with the dividend payment in February 2024. Since launching in 2013, AbbVie has impressively expanded its quarterly dividend by more than 285%. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.

Wall Street analysts are anticipating the pharmaceutical company's revenue and EPS to be approximately $14.03 billion and $2.80, respectively, for the quarter ended December 2023. The company reported a decrease in net revenues and EPS in the third quarter.

To further bolster its pharmaceutical offerings, ABBV is focusing on enhancing its drug portfolio through significant acquisitions. This comes as the firm's stalwart treatments, like Humira are up against generic competition. As part of this strategy, in late 2023, AbbVie announced the acquisition of ImmunoGen, Inc. (IMGN), celebrated for its ovarian cancer treatment, and Cerevel Therapeutics, which is advancing therapies for various neurological conditions.

Moreover, amid intensifying competition in the aesthetics market, AbbVie reaffirms its faith in Botox's ability to maintain its leading market share. It's also witnessing exciting success with immunology drugs Skyrizi and Rinvoq, which anticipate outperforming Humira's peak sales of $21.2 billion, achieved in 2022 by 2027.

Given AbbVie's commitment to diversification, capacity expansion and strong market positioning, it presents itself as a worthy investment ahead of its earnings release. ABBV will report fourth-quarter 2023 results on February 2. A comprehensive analysis of its fundamental performance indicators may provide more insightful data.

Analyzing AbbVie Inc's Financial Performance: A Comprehensive Review of Key Metrics from 2021 to 2023

The trend and fluctuations in trailing-12-month Revenue for AbbVie Inc. (ABBV) over the given period are as follows:

• On March 31, 2021, the Revenue of ABBV stood at $50.2 billion.
• There was steady growth until December 31, 2022, peaking at $58.05 billion.
• The highest recorded Revenue within the timeframe is $58.05 billion on December 31, 2022.
• After reaching its peak, there was a notable decrease in Revenue. By June 30, 2023, it had dropped to $56.02 billion and decreased further to $55.14 billion by September 30, 2023.

The overall growth rate from March 31, 2021, to September 30, 2023 is approximately 9.85%. However, significant fluctuations were observed, with a continuous increase till the end of 2022, followed by a marked decrease in 2023.

The DPS (Dividend Per Share) of AbbVie Inc. (ABBV), demonstrated a gradual increase throughout the observed period, from March 2021 until September 2023.

• Starting from March 2021, the DPS was $4.96.
• The DPS consistently increased over multiple quarters and peaked at $5.92 in September 2023.This account signifies an overall positive trajectory and a notable attention to recent data.
• In 2021, the DPS fluctuated between $4.96 (March) and $5.31 (December).
• In the following year, 2022, the trend followed a similar pattern, starting from $5.42 in March and ending with a value of $5.71 by December.
• Similarly, in the first three quarters of 2023, the DPS continued to ascend to reach $5.92 in September.

From the initial value in March 2021 ($4.96) to the final data point in September 2023 ($5.92), the growth rate of the DPS was approximately 19.35%. This affirms an upward movement in the DPS performance of ABBV over the observation timeline. The most recent measurement as of September 2023 highlights this sustained growth, placing greater emphasis on this value.

The following points summarize the trend and fluctuations of AbbVie Inc.'s (ABBV) Asset Turnover data from March 31, 2021, to September 30, 2023:

• Beginning on March 31, 2021, with an Asset Turnover of 0.34, there has been a gradually increasing trend over the considered period.
• The Asset Turnover peaked at 0.41 by December 31, 2022.
• In the subsequent nine months, through to September 30, 2023, there was a slight decrease in Asset Turnover, settling at 0.41 in December 2022, then declining to 0.41 in March 2023.
• However, it's noteworthy that from June 30, 2023, to September 30, 2023, the Asset Turnover remained relatively stable at around 0.41.
• Focusing on the most recent value, as of September 30, 2023, the Asset Turnover of ABBV stands at 0.41.

Pertaining to growth rate, measuring from the first recorded value to the last, there is a growth of approximately 21%. This data series suggests a general upward trend in the Asset Turnover of AbbVie Inc., indicating an improvement in overall efficiency in using its assets to generate revenue, despite a slight decline in the most recent quarters.

The data outlines the trend and fluctuations of the Analyst Price Target of AbbVie Inc. (ABBV) from November 2021 to January 2024. Below are the significant points summarising the provided data:

Overall Trend: Across the span of more than two years, i.e., November 2021 to January 2024, the Analyst Price Target for ABBV showed an overall upward trend.

November 2021 - April 2023: Initially, there was a steady rise in the target price from $129.17 in November 2021 to $166.39 in May 2023. There were slight fluctuations, such as a decrease in value to $158.43 in November 2022, followed by a gradual increase.

Mid-2023: The target price rose marginally from $167 in June 2023 to reach a peak of $173.54 in November 2023. However, there was a slight dip to $172.4 in December 2023.

Most Recent Data and Last Value: The most recent data from January 2024 shows a marginal increase after the dip to $173.

Growth Rate: The growth rate from the beginning to the last data point indicates an increase of about 34%. This calculation is based on the increase from the first value of $129.17 in November 2021 to the last value of $173 in January 2024. In summary, the Analyst Price Targets for AbbVie Inc. have seen a consistent upward trajectory from 2021 through 2024, despite minor fluctuations throughout this period.

AbbVie Inc's Moderate Fluctuating Growth: A Deep Dive into ABBV's Historical Share Price

The historical share price for AbbVie Inc. (ABBV) indicates a moderate fluctuating growth trend over the observed period, from August 2023 through the end of January 2024.

• The recorded price on August 11, 2023, was $150.99.
• There was minor growth in the week following, with the price rising to $151.51 by August 18, 2023, but then saw a slight drop towards the end of August and the beginning of September, settling at $147.70 by September 1, 2023.
• The figure dipped marginally on September 8th, 2023 to $147.25, but then picked up again to $151.02 on September 15 and reached a peak of $153.53 by September 22.
• However, there was a noticeable decline in the weeks following, hitting its first significant low of $144.07 on October 27, 2023, and continuing to slip down to reach its lowest point at $138.18 on November 17, 2023.
• A resurgence started with November 24, 2023, marking a subtle bounce back at $138.5975.
• The price shot up quite impressively towards the end of the year, closing December 2023 at $154.79.
• The trend showed notable acceleration in January 2024, bringing the price to the highest observed level of $165.05 by January 26, 2024. The last recorded figure for January 31, 2024, remains relatively high at $164.37.

Overall, AbbVie Inc.'s (ABBV) stock price shows a pattern of acceleration and deceleration, with growth evident particularly in early to mid-September 2023 and then again aggressively in December 2023 to January 2024. The price also experienced a slow-down and fall from late September through November 2023. Here is a chart of ABBV's price over the past 180 days.

Evaluating AbbVie Inc.'s Performance: Quality, Value, and Growth Dimensions Analysis

ABBV has an overall A rating, translating to a Strong Buy in our POWR Ratings system. It is ranked #4 out of the 163 stocks in the Medical - Pharmaceuticals category.

Based on the POWR Ratings, the three most noteworthy dimensions for AbbVie Inc. (ABBV) are Quality, Value, and Growth.

Quality: The Quality dimension consistently scores highest, maintaining a constant value of 97 from August 2023-January 2024.

Value: The Value rating starts with an initial high score of 94 but shows a minor decreasing trend over the mentioned period. The values decline marginally from 94 in August 2023 to 92 by January 2024.

Growth: The Growth attribute presents a noticeable increasing trend over time. Starting from a score of 54 in August 2023, it steadily climbs to 72 by November 2023 and remains consistent through January 2024.

Overall, these ratings reflect positively on ABBV moving ahead, with solid quality and value measures and promising growth potential.

How does AbbVie Inc. (ABBV) Stack Up Against its Peers?

Other stocks in the Medical – Pharmaceuticals sector that may be worth considering are Novo Nordisk A/S (NVO), Novartis AG (NVS) and Taro Pharmaceutical Industries Ltd. (TARO) -- they have similar POWR Ratings.

What To Do Next?

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ABBV shares were trading at $164.99 per share on Thursday morning, up $0.59 (+0.36%). Year-to-date, ABBV has gained 7.48%, versus a 2.22% rise in the benchmark S&P 500 index during the same period.

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.

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