AbbVie: Q2 Earnings Warning Reflects Poor R&D, But It's Not A Red Flag

Summary

  • AbbVie remains a strong long-term performer, offering a solid 3.5% dividend yield and robust revenue growth despite recent share price dips.
  • The company’s updated 2025 guidance reflects a modest EPS downgrade due to significant IPR&D and milestone expenses impacting near-term earnings.
  • Forward P/E remains reasonable at ~16x, suggesting AbbVie is still attractively valued relative to its pharma peers despite the guidance cut.
  • Ongoing diversification beyond immunology shows mixed results, but I remain confident in AbbVie’s resilience and long-term investment thesis.

Savings in danger - Piggy bank in the crosshairs

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Investment Overview - AbbVie Overview, Update On Today's Guidance Downgrade

I have held AbbVie (NYSE:ABBV) stock since mid-2021, and it has been one of my better performing investments over that time. The share price is

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ABBV, RHHBY, BMY, PFE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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