This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

AbbVie Deserves More Respect

NEW YORK (TheStreet) -- Ever since Abbott Labs (ABT - Get Report) spun off its drug business as AbbVie (ABBV - Get Report), the latter company has had a hard time proving to analysts that it can operate as well as its "older brother." It's now been a year since the split.

Despite concerns about AbbVie's pipeline, management continues to deliver on several key initiatives -- not the least of which is better diversification among the company's drugs and other assets. For some critics, this hasn't been enough. Complaints about AbbVie's perceived eroding pipeline continue to dominate the discussion.

When analysts aren't lamenting blockbuster drug Humira, which is used to treat rheumatoid arthritis, they're pressing the panic button about rival products from Pfizer (PFE) and Celgene (CELG). This is even though AbbVie's management has raised guidance, showing investors the confidence they've always had in their ability to deliver revenue growth. And AbbVie's fourth-quarter earnings results show that the Street's concerns were overblown.

With adjusted gross margin improving 2.5% year over year to 77.1%, there's no question that the company ended its fiscal year on a strong note. AbbVie's lack of profitability has been a popular cited bearish argument even though the company has delivered margins that the likes of Merck (MRK) and Novartis (NVS) would kill for.

What's more, AbbVie met the Street's expectations on several other important metrics, including operating income and revenue. What was equally impressive was that the company demonstrated a strong level of efficiency even as management incurred higher operating expenses.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ABT $38.50 1.05%
ABBV $62.34 1.43%
AAPL $93.24 -1.01%
FB $117.26 -0.68%
GOOG $701.43 0.82%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs