Earnings Outlook for AbbVie

On Wednesday, February 03, AbbVie ABBV will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see AbbVie reporting earnings of $2.85 per share on revenue of $13.70 billion. AbbVie earnings in the same period a year ago was $2.21 per share. Quarterly sales came in at $8.70 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 match the consensus estimate when it reports Wednesday, EPS would be up 28.96%. Revenue would be up 57.4% from the same quarter last year. AbbVie's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of AbbVie were trading at $102.2 as of February 01. Over the last 52-week period, shares are up 19.39%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

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.