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Conference Call Takeaways: AbbVie Stock Has Little Upside; Ford Set to Outperform Into 2015
Ford has grown by double-digit rates in the largest auto markets in the world: China and Europe.
Tom Clancy    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Both AbbVie (NYSE:ABBV) and Ford (NYSE:F) had earnings calls today (read the full transcripts here and here). Below are my takeaways from both.

Little Upside to AbbVie Stock Price

AbbVie made comments on its call about hepatitis C pricing, which could be interpreted as more supportive of pricing for hepatitis C drugs than the market currently expects. Specifically, AbbVie noted the following:

  • Convenience is not an important factor when choosing a drug.
  • AbbVie's drug can compete on its merits.
  • The company views hepatitis C as a long-term market.
  • AbbVie's next generation drugs should be more competitive with Gilead's (NASDAQ:GILD) Sovaldi.
If you put these together, it sounds like AbbVie either doesn't want to kill the pricing goose, or it is posturing for better deals as it negotiates with payers ahead of the launch. If AbbVie is less aggressive with pricing when its hepatitis C drug launches, it would also be beneficial for Gilead's hepatitis C drug Sovaldi, which just reported the biggest launch of any drug in recent history. I am selling my AbbVie shares into strength today as I don't see much more upside to the stock price. Gilead has not acted well in the wake of a solid earnings report, and while I am inclined to increase my position, I am waiting to see if the stock goes back and tests $70.

Ford Sees Growth

If it is possible to post a profit decline and miss earnings expectations while having a great quarter, Ford did that today. Weather and warranty costs negatively impacted US results, but Ford grew by double-digit rates in the largest auto markets in the world: China (No. 1) and Europe (No. 2). In particular, China not only turned profitable, but operating margins in the region came in at 11%, which is three times higher than the market expected. Management indicated that 2014 pricing in the US will likely be stronger than it initially expected, and if Ford continues to gain share in its fastest growing and most profitable market (China), the company is positioned to deliver better-than-expected results through 2014 and into 2015.

Twitter: @Honest_T

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Positions in ABBV, GILD, and F

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Conference Call Takeaways: AbbVie Stock Has Little Upside; Ford Set to Outperform Into 2015
Ford has grown by double-digit rates in the largest auto markets in the world: China and Europe.
Tom Clancy    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Both AbbVie (NYSE:ABBV) and Ford (NYSE:F) had earnings calls today (read the full transcripts here and here). Below are my takeaways from both.

Little Upside to AbbVie Stock Price

AbbVie made comments on its call about hepatitis C pricing, which could be interpreted as more supportive of pricing for hepatitis C drugs than the market currently expects. Specifically, AbbVie noted the following:

  • Convenience is not an important factor when choosing a drug.
  • AbbVie's drug can compete on its merits.
  • The company views hepatitis C as a long-term market.
  • AbbVie's next generation drugs should be more competitive with Gilead's (NASDAQ:GILD) Sovaldi.
If you put these together, it sounds like AbbVie either doesn't want to kill the pricing goose, or it is posturing for better deals as it negotiates with payers ahead of the launch. If AbbVie is less aggressive with pricing when its hepatitis C drug launches, it would also be beneficial for Gilead's hepatitis C drug Sovaldi, which just reported the biggest launch of any drug in recent history. I am selling my AbbVie shares into strength today as I don't see much more upside to the stock price. Gilead has not acted well in the wake of a solid earnings report, and while I am inclined to increase my position, I am waiting to see if the stock goes back and tests $70.

Ford Sees Growth

If it is possible to post a profit decline and miss earnings expectations while having a great quarter, Ford did that today. Weather and warranty costs negatively impacted US results, but Ford grew by double-digit rates in the largest auto markets in the world: China (No. 1) and Europe (No. 2). In particular, China not only turned profitable, but operating margins in the region came in at 11%, which is three times higher than the market expected. Management indicated that 2014 pricing in the US will likely be stronger than it initially expected, and if Ford continues to gain share in its fastest growing and most profitable market (China), the company is positioned to deliver better-than-expected results through 2014 and into 2015.

Twitter: @Honest_T

< Previous
  • 1
Next >
Positions in ABBV, GILD, and F

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Daily Recap
Conference Call Takeaways: AbbVie Stock Has Little Upside; Ford Set to Outperform Into 2015
Ford has grown by double-digit rates in the largest auto markets in the world: China and Europe.
Tom Clancy    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

Both AbbVie (NYSE:ABBV) and Ford (NYSE:F) had earnings calls today (read the full transcripts here and here). Below are my takeaways from both.

Little Upside to AbbVie Stock Price

AbbVie made comments on its call about hepatitis C pricing, which could be interpreted as more supportive of pricing for hepatitis C drugs than the market currently expects. Specifically, AbbVie noted the following:

  • Convenience is not an important factor when choosing a drug.
  • AbbVie's drug can compete on its merits.
  • The company views hepatitis C as a long-term market.
  • AbbVie's next generation drugs should be more competitive with Gilead's (NASDAQ:GILD) Sovaldi.
If you put these together, it sounds like AbbVie either doesn't want to kill the pricing goose, or it is posturing for better deals as it negotiates with payers ahead of the launch. If AbbVie is less aggressive with pricing when its hepatitis C drug launches, it would also be beneficial for Gilead's hepatitis C drug Sovaldi, which just reported the biggest launch of any drug in recent history. I am selling my AbbVie shares into strength today as I don't see much more upside to the stock price. Gilead has not acted well in the wake of a solid earnings report, and while I am inclined to increase my position, I am waiting to see if the stock goes back and tests $70.

Ford Sees Growth

If it is possible to post a profit decline and miss earnings expectations while having a great quarter, Ford did that today. Weather and warranty costs negatively impacted US results, but Ford grew by double-digit rates in the largest auto markets in the world: China (No. 1) and Europe (No. 2). In particular, China not only turned profitable, but operating margins in the region came in at 11%, which is three times higher than the market expected. Management indicated that 2014 pricing in the US will likely be stronger than it initially expected, and if Ford continues to gain share in its fastest growing and most profitable market (China), the company is positioned to deliver better-than-expected results through 2014 and into 2015.

Twitter: @Honest_T

< Previous
  • 1
Next >
Positions in ABBV, GILD, and F

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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