AbbVie Stock Falls 4% -- What Investors Need to Know

• AbbVie's third-quarter results were beauteous strong, and the institution accrued its guidance.

• It was not capable to impressment the market, which seemingly expected much from the drugmaker.

• AbbVie's aboriginal remains bright, though, and its dividend programme looks stone coagulated arsenic always.

• 10 stocks we similar amended than AbbVie ›

Earnings play creates short-term winners and losers, companies whose shares emergence oregon autumn aft they denote their quarterly updates. The bully quality is that among these short-term losers, determination are plentifulness of semipermanent winners -- oregon companies that look charismatic for investors focused connected the agelong crippled adjacent aft a post-earnings dip.

That seems to beryllium the lawsuit with AbbVie (NYSE: ABBV). The pharmaceutical elephantine failed to impressment Wall Street with its third-quarter results, starring to a dip connected the heels of its net release. However, the drugmaker is inactive a buy. Here is much connected AbbVie's caller results and prospects.

On the surface, AbbVie's third-quarter results, which it released connected Oct. 31, looked beauteous strong. The company's gross accrued by a steadfast 9.1% twelvemonth implicit twelvemonth to $15.8 billion. For context, top-line maturation successful the precocious azygous digits is usually considered rather beardown for a pharmaceutical elephantine similar AbbVie. Besides, the institution mislaid patent exclusivity for its then-largest currency cow, Humira, successful 2023. AbbVie's quality to turn income astatine this rate, immoderate 2 years aft the fact, is noteworthy. On the bottommost line, AbbVie's adjusted net per stock (EPS) came successful astatine $1.86.

Though that was down 38% twelvemonth implicit year, it was mostly owed to acquisition-related expenses, truthful it's not thing to interest about. In fact, AbbVie adjacent accrued its guidance for the afloat twelvemonth 2025. The institution present expects adjusted EPS betwixt $10.61 and $10.65, up from its erstwhile scope of $10.38 to $10.58. Despite each that, the marketplace was unimpressed, apt due to the fact that galore investors expected an adjacent stronger show from the drugmaker.

AbbVie has recovered astir of its post-earnings losses, particularly aft the extremity of the authorities shutdown lifted the broader market. But adjacent speech from marketwide movements, the drugmaker looks attractive.

It has respective products that could thrust coagulated top-line maturation successful the adjacent decade. None is much important than its duo of immunology medicines, Skyrizi and Rinvoq. These 2 therapies person performed adjacent amended than absorption anticipated. They grew their combined gross by much than 40% twelvemonth implicit twelvemonth to $6.9 billion.