AbbVie (NYSE: ABBV), a pharmaceutical giant, is set to release its first-quarter earnings report on April 29. The stock has not performed well so far this year, with shares down 13% as of writing. Could the drugmaker’s quarterly update be the catalyst that helps it recover? Let’s find out whether it’s worth it to invest in AbbVie before its next earnings report.
AbbVie is entering its quarterly update with solid momentum for its key growth pillars, Skyrizi and Rinvoq. These two immunology medicines have replaced Humira, once the world’s best-selling drug, whose revenue peaked at $21.2 billion. The pharmaceutical leader is projecting that Skyrizi and Rinvoq will cross $31 billion in combined annual sales in 2026, one year ahead of schedule. The market will expect strong first-quarter performances for both.
Image source: Getty Images.
Mind your investment horizon.
AbbVie (ABBV +0.10%), a pharmaceutical giant, is set to release its first-quarter earnings report on April 29. The stock has not performed well so far this year, with shares down 13% as of writing. Could the drugmaker’s quarterly update be the catalyst that helps it recover? Let’s find out whether it’s worth it to invest in AbbVie before its next earnings report.
What will the earnings report reveal?
AbbVie is entering its quarterly update with solid momentum for its key growth pillars, Skyrizi and Rinvoq. These two immunology medicines have replaced Humira, once the world’s best-selling drug, whose revenue peaked at $21.2 billion. The pharmaceutical leader is projecting that Skyrizi and Rinvoq will cross $31 billion in combined annual sales in 2026, one year ahead of schedule. The market will expect strong first-quarter performances for both.
Image source: Getty Images.
On the other hand, one possible worry might be that other growth drivers aren’t pulling their weight. AbbVie’s Humira, which lost patent exclusivity in the U.S. in 2023, remained its third best-selling therapy last year. That should change in the first quarter if other franchises perform well while Humira’s descent into eventual irrelevance continues. But if Humira maintains its spot, the market could punish AbbVie if it sees weakness in other growth franchises as the reason.
Another possible problem lies with AbbVie’s cancer medicine Imbruvica, whose sales have been declining due to competition. It is now the subject of government price negotiations that should lead to even lower revenue. Provided AbbVie can post solid growth despite that — perhaps matching or even exceeding its $14.7 billion projected net revenue for the period, implying year-over year growth of about 10% — the company’s share might soar.
AbbVie
Today’s Change
(0.10%) $0.20
Current Price
$197.57
Of course, that will depend on other factors as well, including AbbVie’s outlook for the rest of the year and potential clinical or regulatory developments. So, is AbbVie stock a buy before its earnings release? My view is that it depends on what each investor is looking for. It’s always challenging to predict how the market will react even to solid quarterly updates — so AbbVie’s shares could move one way or the other (or barely show any movement) on April 29. And given broader uncertainty and volatility, no one knows how AbbVie will perform over the next six months.
However, AbbVie has several strengths that should appeal to long-term investors, especially in the current volatile climate. It is a pharmaceutical giant that sells products people need regardless of economic conditions, it generates consistent revenue and earnings, and it has a fantastic dividend program. AbbVie is a member of the Dividend Kings, a group of corporations with at least 50 consecutive annual dividend increases — AbbVie is currently at 54. So, AbbVie is an excellent pick right now for long-term income seekers, regardless of what happens on April 29.
