AbbVie Q2 Earnings Preview: Focus on the new era of the company

AbbVie (NYSE:ABBV) is scheduled to announce Q2 earnings results on Thursday, July 25th, before market open.

Analysts are expecting a profit of $2.66 (-8.6% Y/Y) on revenue of $14.03B (+1.2% Y/Y).

The results are mostly expected to be in-line with estimates, while investors will keep a sharp eye on comments what the company’s future holds after Humira patent expiry and the new top management change.

Barclays says, “We expect another year of meaningful erosion in ’25; we forecast 45% Humira erosion in the U.S. with domestic sales reaching $4.2bn – where we think the Street still needs to come down further. An interesting dynamic on the call will be how much the company reinforces this on the call after fairly emphatic messaging on the 1Q call that seems to have only been integrated into a fraction of Street models.”

Over the last 2 years, ABBV has beaten EPS estimates 75% of the time and has beaten revenue estimates 50% of the time.

Over the last 3 months, EPS estimates have seen 4 upward revisions and 12 downward. Revenue estimates have seen 13 upward revisions and 0 downward.

According to SA analyst Edmund Ingham, AbbVie will meet or exceed expectations in Q2. “It will potentially upgrade expectations for the full year. I expect them to continue to make the case for revenues to begin growing again in 2024 after a “trough” year in 2023, and for a high single digit, industry exceeding CAGR between 2025 and 2030, as it has regularly promised.”

ABBV has risen 13% YTD and 21.2% in the last 12 months.

The company has a Hold rating on SA quant rating system, while Wall Street analysts recommend it as a Buy.