AbbVie Reports Strong Q4 2024 Earnings, Beats Estimates Despite Decline in Humira Sales

Quarterly Earnings and Revenue Highlights

AbbVie Inc. (ABBV) announced its fourth-quarter 2024 adjusted earnings of $2.16 per share, surpassing the Zacks Consensus Estimate of $2.13. Furthermore, these earnings were higher than the company’s earlier guidance of $2.06-$2.10 released just weeks prior. However, this marks a decline of approximately 23% compared to the previous year, driven by increased IPR&D expenses.

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AbbVie reported revenues of $15.10 billion for the quarter, exceeding the Zacks Consensus Estimate of $14.87 billion. This represents a 5.6% increase year-over-year, with operational growth close to 6.1%.

The revenue surge was fueled by strong sales from key products such as Rinvoq, Skyrizi, Venclexta, and Vraylar. Newer entries like Ubrelvy, Elahere, Epkinly, and Qulipta also made significant contributions, although sales from Humira and Imbruvica experienced declines.

It’s worth noting that AbbVie’s shift from dependence on Humira, which lost exclusivity in January 2023, poses challenges but also opens doors for new revenue streams.

Immunology Drugs Propel ABBV’s Revenue Growth

In the immunology sector, Rinvoq generated net revenues of $1.83 billion during the quarter, reflecting a striking 47.1% increase. This growth was facilitated by recent label expansions targeting new patient populations. Sales for Rinvoq exceeded both the Zacks Consensus Estimate and AbbVie’s internal projections of $1.72 billion and $1.70 billion, respectively.

Similarly, Skyrizi recorded revenues of $3.78 billion, a remarkable increase of 57.9%, largely attributed to its own label expansions. This figure surpassed the Zacks Consensus Estimate of $3.58 billion as well as AbbVie’s expectations of $3.56 billion.

Conversely, sales for Humira fell by an alarming 48.7%, totaling $1.68 billion. The drop was most pronounced in the United States, where sales plummeted 54.5% to $1.25 billion, while international market sales dropped 20.5% to $436 million. This decline was significant and fell short of expectations by both the Zacks Consensus Estimate of $1.94 billion and AbbVie’s estimate of $1.92 billion.

Neuroscience Portfolio Shows Strong Performance

AbbVie’s neuroscience product line demonstrated impressive growth, with sales climbing 19.9% to $2.51 billion. This increase was driven primarily by strong performances from Botox Therapeutic, Vraylar, and migraine medications Ubrelvy and Qulipta. These neuroscience sales also exceeded the Zacks Consensus Estimate and AbbVie’s own estimates, which were $2.47 billion and $2.49 billion, respectively.

Botox Therapeutic experienced a 13% rise in sales, reaching $873 million, while Vraylar’s sales rose by 17.1% to $924 million. Ubrelvy sales reached $303 million, up 29.6%, with Qulipta sales soaring by 76.2% to $201 million.

Oncology Performance Reflects Mixed Trends

In the oncology sector, revenues rose 12.9% to $1.69 billion, primarily due to contributions from the acquired ovarian cancer drug Elahere and steady sales from Venclexta, which effectively countered the declining Imbruvica sales. This growth was slightly better than the Zacks Consensus Estimate of $1.67 billion and aligned with AbbVie’s internal model.

Fourth-quarter revenues from Imbruvica totaled $848 million, a decline of 6.2%. However, Imbruvica sales did surpass expectations, with both the Zacks Consensus Estimate of $806 million and AbbVie’s estimate of $819 million being exceeded. Sales in the U.S. for Imbruvica dipped 8.6% to $625 million due to emerging competition. AbbVie partners with Johnson & Johnson (JNJ) for this drug, sharing international profits, which rose 1.2% to $223 million.

Venclexta generated revenues of $655 million, reflecting a 13% growth and also fell short of the Zacks Consensus Estimate and AbbVie’s expectation of $674 million. Meanwhile, Elahere brought in $148 million, surpassing expectations of $145 million and slightly higher than the $139 million from the previous quarter.

Sales from Epkinly amounted to $40 million compared to $43 million in the third quarter of 2024.

Aesthetics and Other Segments Report Declines

In AbbVie’s aesthetics portfolio, sales dipped 4.4% to $1.30 billion, with Botox Cosmetic sales dropping 3.4% to $687 million and Juvederm sales falling 15.1% to $279 million. Conversely, sales in the eye care segment grew 11.4% to $646 million, led by a 1.4% increase in Ozurdex sales, which reached $120 million.

Cost Analysis and Year-End Review

Adjusted SG&A expenses increased marginally by 0.6% to $3.56 billion. Adjusted R&D spending rose by 18.3%, reaching $2.27 billion.

Full-Year Financial Results

For the full-year 2024, AbbVie reported total revenues of $56.33 billion, marking a 4.6% increase year-over-year. Adjusted earnings for the year stood at $10.12 per share, which is an 8.9% decline from 2023 levels.

Positive Outlook for 2025 and Beyond

Projected Financials for 2025

Looking ahead, AbbVie has issued new guidance for 2025, expecting adjusted earnings per share (EPS) to range between $12.12 and $12.32. This range excludes potential impacts from proposed acquisitions and subsequent milestone payments, while the Zacks Consensus Estimate for 2025 earnings stands at $12.18 per share.

Long-term Growth Expectations

AbbVie’s management upheld its projection for a high single-digit compound annual revenue growth rate through 2029, using 2024 as the base year. Furthermore, the company has increased its expectations for combined sales of Skyrizi and Rinvoq, now anticipating revenues exceeding $31 billion, an increase of $4 billion over earlier estimates.

Following this promising guidance, AbbVie shares rose over 5% in pre-market trading. Over the past year, the stock has appreciated approximately 5%, in contrast to a 1% decline within the industry.