Pharmaceutical giant AbbVie (ABBV) is set to release its Q2 earnings report this week. This has some investors wondering whether it’s a good idea to buy shares of ABBV stock beforehand.
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What Wall Street Expects
Wall Street expects ABBV to report quarterly earnings of $2.95 per share in its upcoming report, which represents a year-over-year increase of 11.3%. Revenues are expected to come in at $15.04 billion, up 4% from the year-ago quarter.
Will ABBV be able to beat these estimates? As can be seen below, it has a strong track record of doing just that in recent quarters.
Key Insights Ahead of Earnings
In the first quarter, ABBV reported an adjusted earnings per share of $2.46, surpassing the guidance midpoint by $0.10. Total net revenues for the quarter exceeded $13.3 billion, outperforming expectations by nearly $550 million.
Notably, its ex-Humira platform exhibited a sales growth of over 21%, with strong performances across therapeutic areas such as immunology, neuroscience, oncology, and anesthetics.
In Q2, AbbVie’s revenue growth is likely to have been driven by higher sales of newer immunology drugs, Skyrizi and Rinvoq. Depression drug Vraylar and new migraine drugs — Ubrelvy and Qulipta – are also likely to have grown sales over the period.
However, sales of its blockbuster immunology drug Humira are expected to keep falling after it lost patent protection in 2023. In its Oncology arm, analysts expect Imbruvica sales to have declined due to competition from new oral therapies.
The company continues to invest, recently signing a licensing deal with New York-based Ichnos Glenmark Innovation for an investigational trispecific antibody targeting oncology and autoimmune diseases. It is also spending $10 billion in the U.S. to support expansion into new developing areas such as obesity.
This is likely to have been part of the group’s response to the threat of Trump tariffs on the pharmaceutical industry.
Despite this, the ABBV share price has held up well this year, rising over 10%.
Is ABBV a Good Stock to Buy Now?
On TipRanks, ABBV has a Moderate Buy consensus based on 9 Buy and 6 Hold ratings. Its highest price target is $250. ABBV stock’s consensus price target is $209.33, implying a 9.47% upside.
