Friday, January 31, 2025Today’s pre-market activity is positive, with futures in the green across major indexes: the Dow is +110 points at this hour, with the S&P 500 +26 and the Nasdaq leading the way, +158 points. The small-cap Russell 2000 is +5. Each of these indexes has been trading +1% or higher through the past five trading days, and between +4% (Nasdaq) and a robust +7% (Dow) off its January lows.PCE Numbers In-Line for DecemberThe Fed’s preferred gauge for inflation is the Personal Consumption Expe ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Key TakeawaysAbbVie's fourth-quarter revenue exceeded forecasts on higher sales of its Skyrizi and Rinvoq drugs to treat inflammation.The demand for those two treatments offset continuing falling sales of its former blockbuster medicine, Humira.AbbVie raised its long-term outlook for Skyrizi and Rinvoq revenue. AbbVie (ABBV) stock was one of the top gainers in the S&P 500 Friday morning as the biotech firm posted better-than-expected sales and gave strong guidance on higher demand for two of its drugs to tr ...

For the quarter ended December 2024, AbbVie (ABBV) reported revenue of $15.1 billion, up 5.6% over the same period last year. EPS came in at $2.16, compared to $2.79 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $14.87 billion, representing a surprise of +1.56%. The company delivered an EPS surprise of +1.41%, with the consensus EPS estimate being $2.13.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

AbbVie (ABBV) came out with quarterly earnings of $2.16 per share, beating the Zacks Consensus Estimate of $2.13 per share. This compares to earnings of $2.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.41%. A quarter ago, it was expected that this drugmaker would post earnings of $2.92 per share when it actually produced earnings of $3, delivering a surprise of 2.74%.Over the last four quarters, the company has surpasse ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): January 6, 2025 ABBVIE INC. (Exact name of registrant as specified in its charter) (State or other Jurisdiction (Commission File Number) (IRS Employer Delaware 001-35565 32-0375147 of Incorporation) Identification No.) 1 North Waukegan Road ...

Reports Full-Year Diluted EPS of $2.39 on a GAAP Basis, a Decrease of 12.1 Percent; Adjusted Diluted EPS of $10.12, a Decrease of 8.9 Percent; These Results Include an Unfavorable Impact of $1.52 Per Share Related to 2024 Acquired IPR&D and Milestones Expense  Delivers Full-Year Net Revenues of $56.334 Billion, an Increase of 3.7 Percent on a Reported Basis and 4.6 Percent on an Operational Basis   Full-Year Global Net Revenues from the Immunology Portfolio Were $26.682 Billion, an Increase of 2.1 Percent ...

Core Viewpoint - AbbVie Inc. is experiencing stagnation in its stock performance, while Novartis AG shows stronger bullish momentum ahead of their fourth-quarter earnings reports [1]. AbbVie Analysis - AbbVie stock is trading above its short-term moving averages, with the eight-day SMA at $173.14 and the 20-day SMA at $175.20 indicating bullish signals [2]. - However, longer-term trends reveal AbbVie is closely aligned with its 50-day SMA at $175.33 and below its 200-day SMA at $178.77, indicating potential downside pressure [2]. - The MACD at negative 0.89 supports a bearish outlook, while the RSI at 50.39 suggests neutral momentum [2]. - Overall, AbbVie is struggling for direction, with slight selling pressure limiting breakout potential [3]. - A strong earnings beat could help AbbVie surpass key resistance levels, but the current setup indicates vulnerability to further consolidation [3]. Novartis Analysis - Novartis is trending higher, trading above its short-term and mid-range moving averages, with the eight-day SMA at $101.27, the 20-day SMA at $99.57, and the 50-day SMA at $100.44 acting as support [4]. - The MACD at 0.68 indicates bullish momentum, and the RSI at 63.61 shows strength without being overbought [4]. - Despite the positive indicators, Novartis remains below its 200-day SMA at $106.77, suggesting some caution is warranted [4]. Investor Implications - Heading into earnings, Novartis has a technical advantage with a stronger bullish structure and upward momentum, while AbbVie is in a range and requires a catalyst for upward movement [5]. - Key resistance levels to watch are AbbVie above $177 and Novartis above $106 for potential movement post-earnings [5].

Core Viewpoint - AbbVie is expected to report its fourth-quarter and full-year 2024 earnings on January 31, with sales estimated at $14.92 billion and earnings at $2.09 per share, although earnings estimates for 2025 have slightly declined from $12.27 to $12.17 per share [1][7]. Financial Performance - AbbVie has a strong earnings surprise history, exceeding expectations in the last four quarters with an average earnings surprise of 2.29%, including a 2.74% surprise in the last quarter [3]. - The company currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [5]. Sales Drivers - Sales in the fourth quarter are likely driven by newer immunology drugs, Skyrizi and Rinvoq, with consensus estimates of $3.58 billion and $1.72 billion, respectively [7]. - Humira, AbbVie's blockbuster drug, is facing sales erosion after losing patent protection in January 2023, with consensus estimates for its sales at $1.94 billion [8]. - Sales for the J&J-partnered Imbruvica are expected to decline due to competition, while Roche-partnered Venclexta sales are likely to rise [9]. - Neuroscience sales are projected to be strong, driven by drugs like Vraylar and new migraine treatments, with estimates at $2.47 billion [10]. - Aesthetics product sales are expected to be negatively impacted by sluggish growth in the U.S. and China, with estimates at $1.39 billion [11]. Stock Performance and Valuation - AbbVie shares have risen nearly 8% over the past year, outperforming the industry but underperforming the S&P 500 [12]. - The stock trades at a forward price/earnings ratio of 14.39, lower than the industry average of 16.00, indicating attractive valuation [15]. Investment Outlook - Despite challenges such as Humira's biosimilar erosion and competitive pressures, AbbVie is well-positioned for growth, driven by strong sales from Rinvoq, Skyrizi, and other newer drugs [18]. - The company is generating double-digit sales growth from its ex-Humira platform, which constitutes over 80% of total sales [19]. - AbbVie is actively pursuing collaborations to strengthen its pipeline and drive long-term growth [20]. - Long-term investors may find current valuations reasonable for investment, with potential opportunities arising from any significant share price declines [21].

Core Insights - High-yield dividend stocks have outperformed the S&P 500 over 20+ years, indicating that sustainable high dividend yields can signal intrinsic value [1] - Companies with above-average dividend yields typically exhibit strong free cash flows, resilient business models, and shareholder-focused management [2] Company Summaries AbbVie Inc. (ABBV) - AbbVie is a leader in the healthcare sector, with growth driven by its immunology franchise despite the patent expiration of Humira in the U.S. [4] - The stock trades at a forward P/E ratio of 14.2, significantly lower than the S&P 500's 23.6, supported by a robust clinical pipeline with over 90 compounds in development [5] - AbbVie offers a 3.85% dividend yield with a 213% payout ratio, backed by strong free cash flow and a clear path to earnings growth from new drug launches [6] HSBC Holdings plc (HSBC) - HSBC provides exposure to Asian financial markets, benefiting from rising affluence and demand for banking services, with a global network across 60 countries and $3 trillion in assets [7] - The stock has a forward P/E ratio of 8.2, below the banking industry average of 12.9, indicating a potential undervaluation given its strong position in high-growth markets [8] - HSBC offers a 3.9% dividend yield with a conservative 50% payout ratio, supported by diversified revenue streams and a strong balance sheet [9] Pfizer Inc. (PFE) - Pfizer is viewed as a turnaround opportunity in pharmaceuticals, generating over $60 billion in annual revenue from key therapeutic areas [10] - The stock trades at a forward P/E ratio of 8.87, significantly below the S&P 500's 23.6, presenting a buying opportunity at a steep discount [11] - Pfizer has a 6.59% dividend yield with a concerning 222% payout ratio, though its diverse portfolio and strong free cash flow provide some assurance for sustainability [12][13] Philip Morris International Inc. (PM) - Philip Morris is leading the transition to reduced-risk tobacco products, with growth driven by the IQOS heated tobacco system [14] - The stock trades at a forward P/E ratio of 18.3, below the S&P 500's 23.6 but at a premium to tobacco industry peers, justified by its lead in reduced-risk products [15] - The company has an 83% payout ratio, raising concerns about dividend sustainability, but offers a healthy 4.24% yield supported by stable free cash flows [16] Investment Strategy - High-yield dividend investing requires balancing current income with sustainability risks, and these four companies represent high-conviction income investments for 2025 and beyond due to their attractive yield and sustainability profiles [17]