Breaking News
Investing Pro 0
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started

Why Is AbbVie Stock Falling, But Still Good Long-Term?

By (Chris Markoch )Stock MarketsOct 31, 2022 05:03AM ET
Why Is AbbVie Stock Falling, But Still Good Long-Term?
By (Chris Markoch )   |  Oct 31, 2022 05:03AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
  • AbbVie stock is down about 3% after it posted a mixed earnings report but is still a solid long-term investment.
  • The earnings report is a reminder that the company will lose U.S. patent protection for Humira in 2023.
  • AbbVie expects Rinvox and Skryrizi to pick up some slack until other candidates are approved.

AbbVie Inc (NYSE:ABBV) stock is down 3% in midday trading after the company posted a mixed earnings report. However, that’s a significant improvement from where AbbVie stock opened. In the pre-market, the stock dropped 6% after the released report.

This seems to be a case of ready, fire, aim. As investors have had a chance to look at the report, there’s not a lot of unexpected news. By now, AbbVie will lose patent protection on Humira is old news. That news — along with the broader macroeconomic drop — has been holding AbbVie stock down for most of the year.

Before the earnings report, ABBV stock was up 7% in the past month. That had pushed the stock past two critical technical levels. Specifically, the stock had moved above its 50- and 200-day ascending averages.

After the initial gap down, the stock holds above those levels, which may indicate more room for ABBV stock to run.

What Was in the Earnings Report?

$14.81 billion was lower than analysts’ expectations of $14.96 billion. However, on the bottom line, the company beat expectations of $3.57 earnings per share (EPS) with a solid $3.66 EPS. The company also narrowed its guidance for full-year EPS. It now expects to come in at $13.84 to $13.88. The midpoint would be in line with analyst estimates.

Questions come in for AbbVie on the top line. Revenue from the company’s flagship immunological drug portfolio came slightly below expectations ($7.65 billion instead of $7.66 billion). This includes Humira, Rinvoq, and Skyrizi. Of that $7.65 billion, $4.9 billion came from Humira.

As Humira loses its patent protection, biosimilar drug threats are real. However, earlier this year, the company confirmed its guidance for combining Rinvoq and Skyrizi to deliver over $15 billion combined revenue by 2025. Barring an expedited review, the company is on track to launch its ABBV-154 candidate by late 2026 or 2027. The company expects this to be the next generation of Humira.

The Dividend King Will Remain on his Throne

AbbVie joined the exclusive Dividend Kings club in 2022, when it increased its dividend for the 50th consecutive year. The company announced it would increase the dividend by 5% starting in 2023.

That’s below the rate of growth AbbVie investors expect, but it’s still an excellent reason to own the stock, particularly when it already pays out $5.64 per share annually.

ABBV Stock Still Looks Like a Strong Long-Term Buy

AbbVie’s results were just iffy enough for investors to take some profit off the table. The fact that shares have recovered about half of the pre-market loss suggests this is not part of another leg down. It also suggests that investors are now looking closely at what was still a solid earnings report.

But does it create a good entry point for the stock? ABBV stock is about 20% below its 52-week high set in April of this year. Since the summer, analysts have been far more bearish about the stock.

Analysts surveyed by MarketBeat give ABBV stock about a 9% upside from its current price. However, today is earnings day, so that number will likely change in the coming days as analysts digest what they hear on the earnings call.

Looking at a stock like AbbVie with a broader lens is always good. Over the last five years, the stock has grown 61%, not including the dividend. But it’s also fair to say that most of those gains have been in the last two and a half years. Still, with a solid revenue base and a robust pipeline with a solid dividend, it’s not the wrong time to take a long position in ABBV stock.

Original Post

Why Is AbbVie Stock Falling, But Still Good Long-Term?

Related Articles

Why Is AbbVie Stock Falling, But Still Good Long-Term?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email