Should You Buy AbbVie Stock Ahead of Q3 Earnings Report?

Core Insights - AbbVie is expected to report Q3 2025 earnings on October 31, with sales estimated at $15.59 billion and earnings per share (EPS) at $1.80, although earnings estimates have declined from $12.02 to $10.81 in the past month [1][4][20] Financial Performance - AbbVie has consistently exceeded earnings expectations in the last four quarters, with an average earnings surprise of 2.46% [2][3] - The company anticipates adjusted earnings between $1.74 and $1.78 per share for Q3 2025, with net revenues around $15.5 billion [6] Product Performance - Sales growth is expected to be driven by newer immunology drugs, Skyrizi and Rinvoq, with consensus estimates for Skyrizi at $4.56 billion and Rinvoq at $2.16 billion [7] - Humira, AbbVie's blockbuster drug, is projected to generate $1.15 billion in sales, facing erosion due to lost patent protection [8] - In oncology, sales of Imbruvica are expected to decline due to competition, while Venclexta sales are anticipated to rise [9][10] - Neuroscience product sales are estimated at $2.74 billion, driven by strong performances from Botox, Vraylar, and new migraine drugs [12][11] - Aesthetics product sales are projected to recover to $1.27 billion, supported by stabilizing demand in the U.S. market [13] Stock Performance and Valuation - AbbVie's stock has increased over 28% this year, outperforming the industry and S&P 500 [15] - The stock is trading at a P/E ratio of 16.60, above the industry average of 15.58 and its five-year mean of 13.27 [18] Strategic Outlook - AbbVie is expected to achieve robust revenue growth in 2025, with a projected high single-digit revenue CAGR through 2029, driven by Skyrizi and Rinvoq [20] - Recent acquisitions and licensing deals have increased near-term expenses, impacting EPS estimates negatively [22][23] - Short-term investors may consider selling due to elevated IPR&D expenses, while long-term investors may remain optimistic about the company's growth potential [24]