Can ABBV sustain its earnings momentum into 2025?
3/28/2025 01:22pm
**ABBV's ability to sustain its earnings momentum into 2025 is uncertain based on current financial indicators and market analyses.** Here's a detailed assessment:
1. **Recent Performance and Projections**:
- ABBV's most recent report period ended with a net loss of $23 million and a negative diluted EPS of $0.02 for Q4 2024. The company's revenue grew by 5.6% to $15.1 billion, but this was not enough to offset the net income decline.
- Analysts anticipate an EPS of $2.51 for the upcoming quarter, indicating a 8.66% increase year-over-year. Revenue is expected to reach $12.92 billion, up 4.94% from the previous year.
2. **Market Sentiment and Analyst Ratings**:
- Despite recent volatility, AbbVie's stock has shown resilience, with a 13.83% gain in the past month. The stock has a Zacks Rank of #3 (Hold), indicating a neutral stance with potential for growth.
- Analysts have mixed recommendations, with 16 giving a Buy or higher rating, and 10 suggesting a Hold. No analysts recommend a Sell.
3. **Challenges and Uncertainties**:
- The company's recent dip in net income and negative EPS growth rate of -102.79% highlight significant challenges. The need to sustain this earnings momentum will depend on the company's ability to overcome these hurdles.
- The biopharmaceutical sector is competitive, and AbbVie's ability to innovate and maintain its market position will be crucial.
4. **Strategic Moves and Future Outlook**:
- AbbVie's strategic moves, such as the license deal with Gubra A/S for obesity treatment, could potentially enhance its growth profile in the coming years. This could positively influence earnings if successful.
- The company's full-year Zacks Consensus Estimates suggest a positive outlook, with expected year-over-year changes of +21.54% in earnings and +5.66% in revenue.
In conclusion, while there are positive indicators such as expected EPS and revenue growth, the negative net income and the challenges in the industry present risks. The sustainability of ABBV's earnings momentum into 2025 will largely depend on the company's strategic initiatives, market conditions, and its ability to maintain and grow its market share. Investors should closely monitor the company's performance and any updates from analysts regarding their estimates and recommendations.