Earnings Preview: AbbVie

On Friday, October 30, AbbVie ABBV will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect AbbVie's EPS to be near $2.76 on sales of $12.72 billion. AbbVie EPS in the same period a year ago totaled $2.33. Revenue was $8.48 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Friday, EPS would be up 18.45%. Sales would be up 50.02% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 2.19 2.25 2.19 2.30
EPS Actual 2.34 2.42 2.21 2.33
Revenue Estimate 10.08 B 8.33 B 8.70 B 8.38 B
Revenue Actual 10.43 B 8.62 B 8.70 B 8.48 B

Stock Performance

Over the past 52-week period, shares of AbbVie have declined 2.5%.

Do not be surprised to see the stock move on comments made during its conference call. AbbVie is scheduled to hold the call at 09:00:00 ET and can be accessed here.

Posted In: Earnings