) is scheduled to report its second-quarter 2014 results before the
opening bell on Jul 25. Last quarter, the company posted a positive
earnings surprise of 5.88%. The four-quarter trailing average beat
is 3.40%. Let's see how things are shaping up for this
Factors at Play
Revenues are expected to remain under pressure as key products
including TriCor/Trilipix and Niaspan are facing generic
competition. Both TriCor/Trilipix (down 81.8%) and Niaspan (down
75%) revenues declined in the U.S. in the first quarter
However, AbbVie's lead product, Humira should continue performing
well and help offset the impact of genericization. Late last month,
the company raised its 2014 guidance ($3.06 to $3.16 per share) on
the strength of its underlying business performance so far this
year. The positive trends are expects to continue for the rest of
the year including the second quarter.
We expect investor focus to remain on additional details regarding
the upcoming AbbVie-
) acquisition agreement (read more:
AbbVie Set to Acquire UK-Based Shire in Q4
Our proven model does not conclusively show that AbbVie is likely
to beat earnings estimates this quarter. This is because a stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here, as you will see below.
Earnings ESP for AbbVie is 0.00%. This is because both the Most
Accurate estimate and the Zacks Consensus Estimate stand at 76
cents per share.
AbbVie carries a Zacks Rank #2 (Buy). Though a favorable Zacks Rank
increases the predictive power of ESP, the company's ESP of 0.00%
makes surprise prediction difficult.
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 revisions.
Other Stocks to Consider
Here are some companies you may want to consider as our model shows
that they have the right combination of elements.
) has an earnings ESP of +1.79% and carries a Zacks Rank #1. It is
expected to report its second-quarter results on Jul 30 before
) has an earnings ESP of +4.49% and carries a Zacks Rank #2. Endo
will report second quarter earnings on Jul 31 before market
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
ABBVIE INC (ABBV): Free Stock Analysis Report
HOSPIRA INC (HSP): Free Stock Analysis Report
ENDO INTL PLC (ENDP): Free Stock Analysis
SHIRE PLC-ADR (SHPG): Free Stock Analysis
To read this article on Zacks.com click here.