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A Look at AbbVie’s Earnings Projections for 2018

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Earnings projections for 2018

On its third-quarter earnings conference call, AbbVie (ABBV) raised its adjusted EPS guidance for 2018 from its previous projection of $7.76–$7.86 to $7.90–$7.92. The revised estimate implies a YoY (year-over-year) rise of 41.3% considering the midpoint of the guidance range.

As per the company’s third-quarter earnings conference call, AbbVie expects its adjusted fourth-quarter EPS to be in the range of $1.89–$1.91 excluding a $0.26 impact of noncash amortization and other items. This guidance range implies a YoY rise of 28% at the midpoint.

In the third quarter, AbbVie reported adjusted diluted EPS of $2.14, a YoY rise of 51.77%. The company surpassed the consensus estimate by $0.13 in the quarter.

Wall Street analysts expect AbbVie to report adjusted diluted EPS of $7.95, a YoY rise of 41.98%, in 2018. The company is also expected to report adjusted diluted EPS of $8.72, a YoY rise of 9.65%, in 2019. Analysts expect AbbVie’s 2020 adjusted diluted EPS to be $9.56, a YoY rise of 9.68%.

Analysts expect AbbVie’s adjusted diluted EPS to be close to $1.93 in the fourth quarter, reflecting a YoY rise of 30.12%.

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Dividend trends

In its third-quarter earnings conference call, AbbVie announced an 11.5% rise in its quarterly per-share cash dividend from $0.96 to $1.07, which will be payable on February 15, 2019.

The company expects its 2018 gross margin ratio to be more than 80.5%, while it expects its adjusted operating margin to be close to 45%.

In the next article, we’ll discuss margin projections for AbbVie in 2018.

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