These Stocks Missed on Earnings, But Will Rebound Next Quarter

Key Points

• Eli Lilly will continue to be a top stock performer on the strength of its GLP-1 portfolio.
• AbbVie continues to tell investors a profitable story that goes well beyond Humira.
• Las Vegas Sands is counting on more hotel capacity in key regions to drive future growth. 

Earnings season is when investors get a progress report about the companies in their portfolio or on their watchlist. An earnings report is generally a lagging indicator. That’s because the headline numbers tell you about a company’s past performance.

Even though past performance isn’t an accurate indicator of future performance, many investors still sell shares of a company’s stock when its earnings fall below analysts’ expectations. 

But over time, your decision to buy or sell a company’s stock should be based on what you believe will happen in the future. That’s why one of the most closely watched elements of a company’s earnings report is the guidance it gives for the next quarter or year.

We’re still midway through the current earnings season, but dozens of companies have already reported lower-than-expected earnings. However, many analysts are looking beyond the headline numbers and deciding that these stocks may still be good investments. Here are three stocks from companies that missed on earnings but have strong support from analysts. 

Demand for GLP-1 Drugs Remains a Multi-Year Catalyst for LLY Stock

Eli Lilly & Co. NYSE: LLY delivered earnings per share of $5.32 on February 6, 2025. While that number was more than double the $2.49 it posted in the same quarter the prior year, it missed analysts' expectations by 13 cents per share. The company also generated revenue of $13.53 billion, which was higher than the $13.43 billion that analysts expected. 

Investors have sent the stock up approximately 3% since the report was released. The dip in earnings is due to lower prices for its GLP-1 drug, Mounjaro. However, Mounjaro sales increased by 60% to $3.53 billion in the quarter, which more than made up for the lower prices. Similar revenue growth was recorded for Zepbound, its GLP-1 candidate for obesity and Trulicity, another blockbuster diabetes drug.

Demand for GLP-1 drugs is likely to remain strong in 2025, and Lilly also showcases a deep pipeline of drugs in all stages of clinical trials. The Eli Lilly analyst forecasts on MarketBeat have a consensus price target of $997.50 for LLY stock, which would be an upside of 13.6%. And that pairs well with a dividend that has increased by approximately 103% in the last five years.

AbbVie Continues to Tell a Strong Story Beyond Humira

A similar story was playing out with AbbVie Inc. NYSE: ABBV. The pharmaceutical giant posted revenue of $15.10 billion which comfortably beat estimates for $14.83 billion. But earnings per share of $2.16 missed estimates by 82 cents and came in 30% lower year-over-year (YOY). And like they did for Eli Lilly, investors bought the news driving ABBV stock up 8% immediately after the announcement.

AbbVie's fortunes have largely centered around its blockbuster drug, Humira, which now faces biosimilar competition in Europe and the United States. But with each passing quarter, the company shows that the other drugs in its arsenal, such as Skyrizi and Rinvoq, are helping to pick up the decline in Humira sales. 

And since AbbVie reported earnings on January 31, it announced FDA approval for Emblaveo, an intravenous antibiotic treatment it has co-developed with Pfizer Inc. NYSE: PFE. The company won’t start receiving revenue until Q3, but it’s another reason to believe that this quarter earnings miss won’tlikely be repeated.

Analysts Bet That More Rooms Will Equal More Gambling

It’s been a rough 12 months for consumer discretionary stocks. And that continues to be true for Las Vegas Sands Inc. NYSE: LVS. The company which owns a network of hotels and casinos came in light on earnings by four cents. The number was three cents lower on a YOY basis. And revenue of $2.9 billion beat estimates for $2.85 billion but was essentially flat compared to the prior year.

Nevertheless, analysts remain bullish on Las Vegas Sands, expecting increased casino revenue as it expands hotel capacity in Macao and its Marina Bay Sands project in Singapore. Macao, which is heavily dependent on China, has been on a slow climb back. However, in the most recent quarter, total visitation in Macao appears to have caught up to 2019 levels.

LVS stock continues to face some risks, particularly as visitation from China's lower GDP per capita provinces remains below 2019 levels. However, analysts have a bullish consensus price target of $59.58, a 38.5% increase from the stock’s closing price on February 7, 2025.