AbbVie’s Q4 Results Exceed Expectations: A Closer Look at Earnings and Future Potential

AbbVie (NYSE: ABBV) recently announced its Q4 results, showcasing revenues and earnings that surpassed analysts’ expectations. The company reported sales of $15.1 billion and adjusted earnings of $2.16 per share, compared to consensus estimates of $14.8 billion and $2.11, respectively. Strong demand for Rinvoq and Skyrizi has driven growth for AbbVie, and its optimistic outlook seems to favor its stock performance.

While ABBV stock has shown a 24% return since the beginning of 2024, it has slightly lagged behind the S&P 500’s 27% increase. Factors impacting AbbVie’s stock price include rising competition and a failed mid-stage clinical trial for a schizophrenia remedy last year. Investors looking for a more stable option might consider the High-Quality Portfolio, which has significantly outperformed the S&P 500, boasting returns exceeding 91% since inception.

Breaking Down AbbVie’s Q4 Performance

In Q4, AbbVie generated revenues of $15.1 billion, marking a 5.6% year-over-year growth. Sales were driven by immunology treatments: while Humira experienced a 49% decline to $1.7 billion, Skyrizi’s sales jumped 58% to $3.8 billion, and Rinvoq revenues rose 46% to $1.8 billion. Additionally, oncology sales benefited from increased Venclexta sales, and neuroscience sales gained from Qulipta and Ubrelvy.

Despite the substantial dip in Humira sales due to growing biosimilar competition, AbbVie has successfully compensated through Skyrizi and Rinvoq, both of which treat chronic skin and autoimmune conditions. The adjusted earnings of $2.16 represent a 23% decrease from the previous year, attributed to a one-time charge of $0.88 per share related to acquired IPR&D and milestone expenses.

Looking ahead, AbbVie anticipates earnings of $12.22 in 2025, slightly above the consensus estimate of $12.18. The forecast suggests high single-digit compound annual revenue growth through 2029, with revised 2027 revenue expectations for Skyrizi and Rinvoq increased by $4 billion.

The Future of ABBV Stock

Following the Q4 results, ABBV stock surged 5%. However, examining its performance over the past four years shows inconsistency, with annual returns of 32% in 2021, 24% in 2022, 0% in 2023, and 19% in 2024. Conversely, the Trefis High-Quality (HQ) Portfolio, composed of 30 stocks, has demonstrated lower volatility and outperformed the S&P 500 during the same period. This stability can be attributed to less erratic movements in stock performance metrics.

As the market wrestles with uncertainty regarding interest rate policies and new tariffs impacting trade with Mexico, Canada, and China, the question remains: Will ABBV continue its trend of underperformance against the S&P 500 in 2023 and 2024, or is an upswing imminent? Currently priced at $184, ABBV trades at 5.8 times trailing revenues, above its historical average P/S ratio of 5.0. Yet, this increase in valuation appears warranted, given how the company has managed to offset declines in Humira sales while positioning itself for future growth.

To better understand ABBV’s potential, it’s valuable to compare it to AbbVie’s peers across relevant performance metrics. More detailed comparisons can be accessed at Peer Comparisons.

[1] Returns as of 2/3/2025
[2] Cumulative total returns since the end of 2016

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.