AbbVie announced in March that it was acquiring Pharmacyclics (PCYC) and its flagship asset Imbruvica, a highly effective treatment for hematologic malignancies.
"Addition of Imbruvica completely changes the growth profile of the company and helps EPS and revenues to grow continuously despite potential biosimilar challenges starting 2017," Deutsche Bank analysts said.
However, the firm lowered 2015 earnings estimates to $4.28 from $4.50 per share, with 2016 earnings cut to $4.84 from $5.20 per share due to Humira weakness outside of the U.S.
AbbVie, based in North Chicago, IN, is a research-based biopharmaceutical company that develops and markets therapies that address a range of diseases.
Shares of AbbVie are rising 0.15% to $71.34 in mid-morning trading Wednesday.
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, expanding profit margins and increase in net income. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.0%. 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 gross profit margin for ABBVIE INC is currently very high, coming in at 83.71%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 24.94% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. 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.
- ABBVIE INC has improved earnings per share by 22.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ABBVIE INC reported lower earnings of $1.09 versus $2.56 in the prior year. This year, the market expects an improvement in earnings ($4.23 versus $1.09).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 25.88% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- You can view the full analysis from the report here: ABBV Ratings Report