) is scheduled to report fourth quarter 2013 results before the
opening bell on Jan 31.
Last quarter, AbbVie had posted an earnings surprise of +5.13%.
We expect the company to beat expectations in the fourth quarter
Why a Likely Positive Surprise?
Our proven model shows that AbbVie is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP:
(Expected Surprise Prediction), which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is +2.41%. This is a very meaningful and leading
indicator of a likely positive earnings surprise.
Zacks #3 Rank (Hold):
Note that stocks with Zacks Rank #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. We
caution against stocks with Zacks Ranks #4 and #5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revision momentum.
The combination of AbbVie's Zacks Rank #3 (Hold) and an earnings
ESP of +2.41% makes us confident of an earnings beat on Jan 31.
What's Driving the Better-than-Expected
AbbVie has delivered positive earnings surprises in the last
three quarters with an average beat of 3.99%.
Although revenues will be impacted by the loss of exclusivity for
Tricor, Trilipix and Niaspan, the strong performance of other
products should offset the negative impact of genericization. Key
growth driver, Humira, will continue to boost revenues. Other
products that should continue performing well include Synthroid,
Creon, Zemplar and Duodopa.
Other Stocks to Consider
AbbVie is not the only company looking up this earnings
season. We also see likely earnings beats coming from these
companies in the health care sector:
) has earnings ESP of +2.27% and holds a Zacks Rank #3. Sanofi
will report fourth quarter earnings on Feb 6.
) has an Earnings ESP of +0.33% and holds a Zacks Rank #1 (Strong
Buy). Actavis will be reporting fourth quarter earnings on Feb
) has an Earnings ESP of +0.75% and holds a Zacks Rank #2 (Buy).
Allergan will be reporting fourth quarter earnings on Feb 5.
ABBVIE INC (ABBV): Free Stock Analysis Report
ACTAVIS PLC (ACT): Free Stock Analysis Report
ALLERGAN INC (AGN): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
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