Back to top

Image: Shutterstock

AbbVie Q2 Preview: Can Shares Retain Their Strength?

Read MoreHide Full Article

The Zacks Large Cap Pharmaceuticals Industry has been hot year-to-date, increasing more than 10% in value and crushing the S&P 500’s decline of approximately 15%. Buyers have defended stocks in this industry at a high level all throughout the year.

A titan in the space, AbbVie (ABBV - Free Report) , is on deck to report quarterly results before the opening bell this Friday, July 29th.  AbbVie is a global research-based biopharmaceutical company that delivers innovative medicines.

In addition, the company carries a Zacks Rank #3 (Hold) with an overall VGM Score of an A. How does the company stand heading into the quarterly release? Let’s find out.

Share Performance & Valuation

There has been a surplus of buyers for AbbVie shares in 2022, with shares gaining a double-digit 15% and outperforming its Zacks Industry by a fair margin.

Zacks Investment Research
Image Source: Zacks Investment Research

Extending the timeframe to cover the last year, we can see that AbbVie shares enjoyed a major run all throughout the late months of 2021, with shares up a double-digit 33% in this timeframe.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition to stellar share performance, the company also sports rock-solid valuation levels, further bolstered by its Style Score of a B for Value. AbbVie’s forward earnings multiple resides at 10.8X, representing a deep 29% premium relative to its Zacks Industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Quarterly Estimates

Analysts have been bearish for the upcoming quarterly release – six negative estimate revisions have hit the tape over the last 60 days. However, the Zacks Consensus EPS Estimate resides at $3.31, good enough for a solid 6.4% uptick in quarterly earnings year-over-year.

Zacks Investment Research
Image Source: Zacks Investment Research

AbbVie’s top-line is projected to expand by a fair amount as well; the $14.7 billion quarterly revenue estimate notches a nice 5% increase compared to year-ago quarterly sales of $13.9 billion. The chart below illustrates the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Quarterly Performance & Market Reactions

Undoubtedly a major positive, AbbVie has consistently reported bottom-line results above expectations, exceeding the Zacks Consensus EPS Estimate in nine of its previous ten quarterly reports.

Top-line results have also been rock-solid; ABBV has recorded seven top-line beats over its last ten quarters.

Buyers come out to play following AbbVie’s quarterly results, with shares moving upwards four times out of its previous six earnings releases.

Bottom Line

Share performance has been stellar, and the company is forecasted to register single-digit top and bottom-line growth. However, analysts have been bearish over the last 60 days, a reflection of the harsh macroeconomic backdrop we’re currently in.

In addition, the company has consistently exceeded earnings estimates, and the market has reacted well as of late following quarterly reports.

Heading into the release, AbbVie (ABBV - Free Report) carries a Zack Rank #3 (Hold).


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in