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Pre-Q2 Earnings: Is AbbVie Stock a Portfolio Must-Have?
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Key Takeaways
AbbVie will report Q2 earnings on July 31, with estimates at $15.07 billion for revenues and $2.89 for EPS.
Skyrizi and Rinvoq are expected to drive growth, offsetting Humira sales erosion.
Neuroscience sales strength contrasts with softness in aesthetics amid Botox and Juvederm slowdown.
AbbVie (ABBV - Free Report) is set to report second-quarter 2025 earnings on July 31, before the opening bell. The Zacks Consensus Estimate for the quarter’s sales and earnings is pegged at $15.07 billion and $2.89 per share, respectively. The company’s earnings estimates for 2025 have declined from $12.29 per share to $11.96 in the past 30 days.
Image Source: Zacks Investment Research
ABBV’s Earnings Surprise History
AbbVie’s performance has been pretty impressive, with its earnings exceeding expectations in each of the trailing four quarters. It delivered a trailing four-quarter average earnings surprise of 2.93%. In the last reported quarter, the pharma giant delivered an earnings surprise of 2.55%.
Image Source: Zacks Investment Research
What Our Model Predicts for ABBV
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of delivering an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the second quarter of 2025, AbbVie expects adjusted earnings to be in the range of $2.84-$2.88 per share. The company expects net revenues of approximately $15.0 billion. Currency is expected to negatively impact revenues by around 0.3% on sales.
AbbVie’s top-line growth in the quarter is likely to have been driven by higher sales of newer immunology drugs, Skyrizi and Rinvoq. Approvals in new indications must have been driving strong revenues for these drugs. The Zacks Consensus Estimate for Skyrizi sales is pegged at $4.12 billion, while the same for Rinvoq is pinned at $1.98 billion. Our model estimate for Skyrizi and Rinvoq sales is pegged at $4.00 billion and $2.00 billion, respectively.
ABBV lost patent protection for its blockbuster immunology drug Humira in the United States in January 2023 and has been facing sales erosion ever since. The drug lost exclusivity in ex-U.S. territories in 2018. The Zacks Consensus Estimate for Humira sales is pegged at $1.41 billion, while our estimate for the same is pinned at $1.34 billion.
In the oncology franchise, we expect J&J (JNJ - Free Report) -partnered Imbruvica sales to have declined due to competition from novel oral therapies. The Zacks Consensus Estimate and our model estimate for the J&J-partnered drug’s sales are pegged at $704 million and $690 million, respectively.
Roche (RHHBY - Free Report) -partnered Venclexta sales are likely to have risen as new patient starts might have improved, driven by strong demand for both CLL and AML indications. The Zacks Consensus Estimate and our model estimate for the Roche-partnered drug’s sales are pegged at $668 million and $669 million, respectively.
We expect AbbVie to record modest revenues from the recently approved lung cancer therapy Emrelis.
Sales of the neuroscience franchise have shown strong growth in recent quarters. The growth is likely to have been driven by higher sales of Botox Therapeutic, depression drug Vraylar and new migraine drugs — Ubrelvy and Qulipta. Similar to the first quarter, we expect most of the sales of the recently launched Parkinson’s disease drug Vyalev coming from ex-U.S. markets in the to-be-reported quarter, though U.S. uptake should start contributing as well.
The Zacks Consensus Estimate and our model estimate for neuroscience product sales are pegged at $2.47 billion and $2.48 billion, respectively.
In the aesthetics franchise, we expect overall sales to have been negatively impacted by the sluggish growth of Botox and Juvederm fillers in the United States and China. The Zacks Consensus Estimate and our model estimate for aesthetics product sales are pegged at $1.33 billion and $1.35 billion, respectively.
Nonetheless, a single quarter’s results are not so important for long-term investors. Let us delve deeper to understand whether to buy, sell or hold the stock at present.
ABBV’s Stock Price Performance & Valuation
Shares of AbbVie have outperformed the industry this year so far, as seen in the chart below.
ABBV Stock Performance
Image Source: Zacks Investment Research
From a valuation standpoint, AbbVie shares are not very cheap. Going by the price/earnings ratio, the company’s shares currently trade at 14.44 times forward 12-month earnings value, just slightly lower than 15.34 for the industry. AbbVie’s shares, however, are trading above their five-year mean of 12.59.
Image Source: Zacks Investment Research
Our Investment Thesis on ABBV Stock
AbbVie has faced its biggest challenge — Humira biosimilar erosion — quite well through the successful launches of Skyrizi and Rinvoq. Driven by the performance of these two drugs, the company expects to return to robust revenue growth in 2025, just the second year following the U.S. Humira LOE, with a projected high single-digit revenue CAGR through 2029.
While competitive pressure on Imbruvica and declining filler sales present some headwinds, sales growth from drugs like Venclexta, Vraylar, Ubrelvy, Elahere, Epkinly and Qulipta helps more than offset these losses. These therapies, though smaller in scale than the immunology medications, provide valuable diversification and steady growth that support AbbVie’s overall performance.
In addition, AbbVie continues to invest in its future pipeline through strategic collaborations and partnerships across multiple therapeutic areas. The company recently signed a licensing deal with New York-based Ichnos Glenmark Innovation for an investigational trispecific antibody targeting oncology and autoimmune diseases.
Stay Invested in ABBV Stock
A solid pipeline and the prospect of growth in 2025 sales and profits are good enough reasons to stay invested in AbbVie’s stock. Any major decline in the company’s share price could be an opportunity for long-term investors to add the stock to their portfolio.
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Pre-Q2 Earnings: Is AbbVie Stock a Portfolio Must-Have?
Key Takeaways
AbbVie (ABBV - Free Report) is set to report second-quarter 2025 earnings on July 31, before the opening bell. The Zacks Consensus Estimate for the quarter’s sales and earnings is pegged at $15.07 billion and $2.89 per share, respectively. The company’s earnings estimates for 2025 have declined from $12.29 per share to $11.96 in the past 30 days.
Image Source: Zacks Investment Research
ABBV’s Earnings Surprise History
AbbVie’s performance has been pretty impressive, with its earnings exceeding expectations in each of the trailing four quarters. It delivered a trailing four-quarter average earnings surprise of 2.93%. In the last reported quarter, the pharma giant delivered an earnings surprise of 2.55%.
Image Source: Zacks Investment Research
What Our Model Predicts for ABBV
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of delivering an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
AbbVie currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping ABBV’s Upcoming Results
For the second quarter of 2025, AbbVie expects adjusted earnings to be in the range of $2.84-$2.88 per share. The company expects net revenues of approximately $15.0 billion. Currency is expected to negatively impact revenues by around 0.3% on sales.
AbbVie’s top-line growth in the quarter is likely to have been driven by higher sales of newer immunology drugs, Skyrizi and Rinvoq. Approvals in new indications must have been driving strong revenues for these drugs. The Zacks Consensus Estimate for Skyrizi sales is pegged at $4.12 billion, while the same for Rinvoq is pinned at $1.98 billion. Our model estimate for Skyrizi and Rinvoq sales is pegged at $4.00 billion and $2.00 billion, respectively.
ABBV lost patent protection for its blockbuster immunology drug Humira in the United States in January 2023 and has been facing sales erosion ever since. The drug lost exclusivity in ex-U.S. territories in 2018. The Zacks Consensus Estimate for Humira sales is pegged at $1.41 billion, while our estimate for the same is pinned at $1.34 billion.
In the oncology franchise, we expect J&J (JNJ - Free Report) -partnered Imbruvica sales to have declined due to competition from novel oral therapies. The Zacks Consensus Estimate and our model estimate for the J&J-partnered drug’s sales are pegged at $704 million and $690 million, respectively.
Roche (RHHBY - Free Report) -partnered Venclexta sales are likely to have risen as new patient starts might have improved, driven by strong demand for both CLL and AML indications. The Zacks Consensus Estimate and our model estimate for the Roche-partnered drug’s sales are pegged at $668 million and $669 million, respectively.
We expect AbbVie to record modest revenues from the recently approved lung cancer therapy Emrelis.
Sales of the neuroscience franchise have shown strong growth in recent quarters. The growth is likely to have been driven by higher sales of Botox Therapeutic, depression drug Vraylar and new migraine drugs — Ubrelvy and Qulipta. Similar to the first quarter, we expect most of the sales of the recently launched Parkinson’s disease drug Vyalev coming from ex-U.S. markets in the to-be-reported quarter, though U.S. uptake should start contributing as well.
The Zacks Consensus Estimate and our model estimate for neuroscience product sales are pegged at $2.47 billion and $2.48 billion, respectively.
In the aesthetics franchise, we expect overall sales to have been negatively impacted by the sluggish growth of Botox and Juvederm fillers in the United States and China. The Zacks Consensus Estimate and our model estimate for aesthetics product sales are pegged at $1.33 billion and $1.35 billion, respectively.
Nonetheless, a single quarter’s results are not so important for long-term investors. Let us delve deeper to understand whether to buy, sell or hold the stock at present.
ABBV’s Stock Price Performance & Valuation
Shares of AbbVie have outperformed the industry this year so far, as seen in the chart below.
ABBV Stock Performance
Image Source: Zacks Investment Research
From a valuation standpoint, AbbVie shares are not very cheap. Going by the price/earnings ratio, the company’s shares currently trade at 14.44 times forward 12-month earnings value, just slightly lower than 15.34 for the industry. AbbVie’s shares, however, are trading above their five-year mean of 12.59.
Image Source: Zacks Investment Research
Our Investment Thesis on ABBV Stock
AbbVie has faced its biggest challenge — Humira biosimilar erosion — quite well through the successful launches of Skyrizi and Rinvoq. Driven by the performance of these two drugs, the company expects to return to robust revenue growth in 2025, just the second year following the U.S. Humira LOE, with a projected high single-digit revenue CAGR through 2029.
While competitive pressure on Imbruvica and declining filler sales present some headwinds, sales growth from drugs like Venclexta, Vraylar, Ubrelvy, Elahere, Epkinly and Qulipta helps more than offset these losses. These therapies, though smaller in scale than the immunology medications, provide valuable diversification and steady growth that support AbbVie’s overall performance.
In addition, AbbVie continues to invest in its future pipeline through strategic collaborations and partnerships across multiple therapeutic areas. The company recently signed a licensing deal with New York-based Ichnos Glenmark Innovation for an investigational trispecific antibody targeting oncology and autoimmune diseases.
Stay Invested in ABBV Stock
A solid pipeline and the prospect of growth in 2025 sales and profits are good enough reasons to stay invested in AbbVie’s stock. Any major decline in the company’s share price could be an opportunity for long-term investors to add the stock to their portfolio.