Back to top

Analyst Blog

AbbVie Inc. (ABBV - Analyst Report) is scheduled to report first quarter 2014 results before the opening bell on Apr 25. Last quarter, AbbVie had posted an earnings surprise of -1.20%. Let’s see how things are shaping up for this announcement.

Factors at Play

Although Humira will continue to boost revenues, AbbVie’s top-line will remain under pressure with the loss of exclusivity of TriCor, TriLipix and Niaspan. Unfavorable currency movement is also expected to impact the top line. We also remain concerned about AbbVie’s dependence on Humira due to intense competition in the market.

Meanwhile, other products like Synthroid, Creon, Zemplar and Duodopa should continue to perform well and partially offset the impact of genericization.

Earnings Whispers?

Our proven model does not conclusively show that AbbVie is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP (Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: The Earnings ESP for AbbVie is -1.47% since the Most Accurate estimate is $0.67 while the Zacks Consensus Estimate is $0.68.

Zacks #3 Rank (Hold): AbbVie’s Zacks Rank #3 (Hold) has little effect on the predictive power of ESP because the Zacks Rank #3 when combined with a negative ESP makes surprise prediction difficult.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows that they have the right combination of elements, i.e., a positive Zacks Earnings ESP and a Zacks Rank #1, #2 or #3.

Actavis plc (ACT - Analyst Report) has an Earnings ESP of +3.34% and holds a Zacks Rank #2 (Buy). Actavis will report first quarter earnings on Apr 30.

Teva Pharmaceutical Industries Ltd. (TEVA - Analyst Report) has an Earnings ESP of +0.00% and holds a Zacks Rank #2. Teva will report first quarter earnings on May 1.

Forest Laboratories Inc. has an Earnings ESP of +4.55% and holds a Zacks Rank #3. Forest Labs will report first quarter earnings on Apr 29.

Read the Full Research Report on ABBV
Read the Full Research Report on FRX
Read the Full Research Report on TEVA
Read the Full Research Report on ACT

Zacks Investment Research

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%