- AbbVie topped estimates. Third-quarter revenue rose 10% to $17.4 billion, ahead of the FactSet estimate of $17.32 billion, and adjusted earnings were $3.82 a share versus the $3.73 expected, according to The Wall Street Journal. By Lumida’s calculation, that is a 9-cent EPS beat and about $80 million more revenue than forecast.
- Immunology carried the quarter. Immunology revenue climbed 16% to $9.17 billion, driven by Skyrizi, Rinvoq and Humira, and neuroscience gained 19% to $3.39 billion. Oncology rose 0.8% and aesthetics fell 1.4%. By Lumida’s calculation, immunology made up about 53% of total sales.
- Profit rebounded from a weak year-ago quarter. Net income came in at $4.22 billion, or $2.37 a share, compared with $186 million, or 10 cents a share, a year earlier. Acquired in-process R&D and milestone expenses weighed 11 cents a share, versus a $1.50-a-share hit a year ago.
- Guidance and the dividend both went up. AbbVie now expects full-year adjusted EPS of $13.95 to $13.99, up from $13.76 to $13.96 and above the $13.91 Wall Street expects. It also raised its quarterly dividend 5.2% to $1.82 a share, or $7.28 a year, an annual yield of about 2.5% based on Thursday’s close of $290.79.
What Happened?
AbbVie reported third-quarter results on Friday that beat Wall Street’s expectations on both revenue and adjusted earnings, and raised its full-year profit outlook and quarterly dividend, the WSJ reported. By Lumida’s calculation, the new guidance midpoint of $13.97 is 11 cents above the prior $13.86 midpoint and 6 cents above the Street’s $13.91. The company had lowered its outlook earlier this month for acquired R&D and milestone costs and cut it in July to account for its acquisition of Apogee Therapeutics.
Why It Matters?
The results show AbbVie’s newer immunology drugs, Skyrizi and Rinvoq, are now the company’s main growth drivers alongside Humira. With immunology now more than half of sales, the business is leaning heavily on that franchise, while neuroscience is emerging as a second growth engine. The guidance raise above consensus and a 5.2% dividend increase signal management’s confidence in cash flow after two earlier cuts to its outlook this year.
What’s Next?
Investors will watch the development of zumilokibart, the experimental drug AbbVie gained in the recently closed Apogee deal, which could rival Regeneron and Sanofi’s Dupixent as a treatment for moderate-to-severe atopic dermatitis, the most common form of eczema. Further acquired R&D charges could again affect reported earnings. The new dividend is payable on Feb. 16 to shareholders of record as of Jan. 15.
Affected Tickers and Coins: ABBV, REGN, SNY, XLV
Source: The Wall Street Journal
