AbbVie (NYSE:ABBV) lowered its earnings expectations for the first quarter of 2023 as it anticipates a pre-tax charge of $150 million. The charge is related to its acquired in-process research and development (IPR&D) and milestone expenses. The company is scheduled to announce its first-quarter results on April 27.
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The company now expects its adjusted Q1 earnings to be in the range of $2.31 – $2.41. The analysts’ estimate is currently pegged at $2.56 per share.
Meanwhile, adjusted earnings for the full year are anticipated to be between $10.62 and $11.02, against analysts’ expectations of $11.07 per share.
Yesterday, analyst Jasper Hellweg from Argus Research downgraded the rating to Hold from Buy. According to Hellweg, sales growth in Skyrizi and Rinvoq are less likely to make up for Humira’s declining sales until 2027.
What is ABBV’s Price Target?
On TipRanks, AbbVie has a Moderate Buy consensus rating based on seven Buy, seven Hold, and one Sell recommendations. The average ABBV stock price target of $163.23 suggests an upside of 1.5%.
It is worth highlighting that the company has an attractive dividend yield of 3.6%. AbbVie has increased dividends every year since 2012, with the latest hike of 5% announced in October 2022. A strong cash position supports the company’s capital deployment activities.
