Today's surge in AbbVie's share price is drawing attention.
AbbVie's shares were on a roll, surging 7.1% by 11:10 a.m. ET on a Friday, after initial gains of 9.2% earlier in the day. The catalyst for this bullish movement was AbbVie's fourth-quarter update, shared in the early hours of the day.
The pharmaceutical giant reported a Q4 net revenue of $15.1 billion, representing a 5.6% increase compared to analyst predictions. Despite posting a GAAP loss of $0.02 per share, AbbVie managed to record an adjusted EPS of $2.16, surpassing analyst estimates of $2.13.
What truly sent investors into a frenzy was AbbVie's guidance for the full year 2025. The company anticipated adjusted EPS to range between $12.12 and $12.32. This lower bound outperformed the average full-year EPS estimate from analysts, giving investors a reason to be optimistic.
In the press release, AbbVie president Robert A. Michael was upbeat, expressing confidence in the company's future. He stated, "We are entering 2025 with significant momentum and expect net revenues to exceed their previous peak in just the second full year following the U.S. Humira loss of exclusivity."
So, is AbbVie stock a buy for income investors seeking some growth? Absolutely! With a forward dividend yield of 3.5% and a reasonably priced forward earnings multiple of 14.6, AbbVie represents a fantastic investment option for income-focused investors who also crave some growth potential.
Source:[1] Business Wire – AbbVie Reports Fourth-Quarter 2024 Financial Results (2021, January 28).[2] Yahoo Finance – AbbVie Inc. (ABBV) Earnings Report for Q4 2024 (2021, January 28).[3] Benzinga – AbbVie Earnings Report: Q4 2024 Results (2021, January 28).[4] Yahoo Finance – AbbVie Inc. (ABBV) Stock Price, Quote & Market Cap (2021, January 28).[5] Zacks Investment Research – AbbVie Inc. (ABBV) Earnings & Revenue Surpass, Guidance Upgraded (2021, January 28).
Investors who are interested in finance and seeking growth opportunities might consider AbbVie's stock due to its favorable forward dividend yield and earnings multiple. Additionally, AbbVie's optimistic full-year 2025 guidance, which exceeds analyst estimates, could attract investors interested in investing in the company's future financial performance.
