Post-earnings guidance & market reaction [climaxing]
Key Questions
Why did AbbVie trim its FY26 and Q1 earnings guidance?
AbbVie confirmed a $744M Q1 IPR&D and milestones charge, impacting EPS by $0.41. This led to revised FY26 guidance of $13.96–$14.16 versus consensus $14.52, and Q1 guidance of $2.56–$2.60 versus estimates $2.99.
What is the impact of the Q1 R&D charge on AbbVie's EPS?
The $744M Q1 IPR&D and milestones expense is expected to reduce earnings by $0.41 per share. This one-time charge reflects strategic investments in the drug pipeline.
How did AbbVie's stock react to the earnings guidance update?
The stock traded around $204-205, down 2.86% post-charge and lagging 10% over the past month. RSI was oversold at 38 ahead of Q1 earnings on April 29.
What is JPMorgan's recommendation on AbbVie stock?
JPMorgan views the recent selloff as a buying opportunity with a $260 price target. They maintain a Buy rating amid competitive concerns.
What is the consensus analyst rating for AbbVie?
AbbVie has a Moderate Buy consensus rating from analysts. The average price target is $253, implying 18-19% upside from recent levels.
Are Skyrizi and Rinvoq driving AbbVie's growth?
Skyrizi and Rinvoq are key growth drivers in immunology sales. They are expected to positively influence Q1 performance despite the R&D charge.
Is AbbVie considered a buy-on-dip by investors?
Publications like GuruFocus, Motley Fool, and JPMorgan recommend buying the dip. Valuation remains attractive with forward EPS growth support, even with a high 2026 earnings bar.
What recent activity has there been from insiders or institutions?
There have been mixed flows with some insider sells and shares sold by funds like Sound Income Strategies LLC. However, analyst sentiment remains positive overall.
Confirmed $744M Q1 IPR&D/milestones drag ($0.41 EPS hit), trimming FY26 guide to $13.96–$14.16 (vs cons $14.52) and Q1 $2.56–$2.60 (vs est $2.99); stock ~$206 (-2.86% post-charge/-10% 1M lag). Immunology $19B '24 to $30B+ '27 (Skyrizi/Rinvoq, Rinvoq patents to 2037); quarterly div $1.73 ($6.92 ann), JPM $260/GuruFocus/Motley Fool/Intellectia buy-on-dip/RSI oversold 38 pre-Q1 4/29, Moderate Buy PT $253 (+18-19%), mixed flows/insider sells/AK Global new stake.