NEW YORK (TheStreet) -- AbbVie (ABBV) - Get Free Report stock is advancing by 1.71% to $54.17 in midday trading on Thursday, ahead of the company's 2015 third quarter earnings results, which are due out before the market open on Friday.
Analysts are expecting the biopharmaceutical company to post a year over year rise in both earnings and revenue for the most recent quarter.
AbbVie has been forecast to report earnings of $1.08 per share on revenue of $5.89 billion by analysts surveyed by Thomson Reuters.
Last year, the company reported earnings of 89 cents per share on revenue of $5.02 billion in the 2014 third quarter.
Separately, TheStreet Ratings team rates ABBVIE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate ABBVIE INC (ABBV) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- ABBV's revenue growth has slightly outpaced the industry average of 10.3%. Since the same quarter one year prior, revenues rose by 11.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Biotechnology industry average. The net income increased by 24.4% when compared to the same quarter one year prior, going from $1,098.00 million to $1,366.00 million.
- Net operating cash flow has slightly increased to $1,832.00 million or 6.69% when compared to the same quarter last year. Despite an increase in cash flow, ABBVIE INC's cash flow growth rate is still lower than the industry average growth rate of 17.19%.
- ABBV has underperformed the S&P 500 Index, declining 15.17% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The debt-to-equity ratio is very high at 5.65 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, ABBV's quick ratio is somewhat strong at 1.12, demonstrating the ability to handle short-term liquidity needs.
- You can view the full analysis from the report here: ABBV