AbbVie Inc (ABBV) Q3 2024 Earnings Call Highlights: Strong Growth in Ex-Humira Platform and ...

GuruFocus News
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In This Article:

  • Total Net Revenues: Nearly $14.5 billion, reflecting 4.9% operational growth.

  • Ex-Humira Growth Platform: Reported growth of nearly 18%.

  • Adjusted Earnings Per Share (EPS): $3.00, $0.10 above guidance midpoint.

  • Adjusted Operating Margin Ratio: 46.7% of sales.

  • Adjusted Gross Margin: 84.4%.

  • Adjusted R&D Expense: 14.2% of sales.

  • Adjusted SG&A Expense: 23% of sales.

  • Net Interest Expense: $591 million.

  • Adjusted Tax Rate: 16.2%.

  • Skyrizi Global Sales: $3.2 billion, up 51.5% operationally.

  • Rinvoq Global Sales: $1.6 billion, up 47.4% operationally.

  • Humira Global Sales: $2.2 billion, down 36.5% operationally.

  • Oncology Revenues: Approximately $1.7 billion.

  • Neuroscience Revenues: More than $2.3 billion, up 16% operationally.

  • Global Aesthetic Sales: More than $1.2 billion, up 1.8% operationally.

  • Cash Balance: Nearly $7.3 billion at the end of September.

  • Free Cash Flow: More than $11 billion.

  • Dividend Increase: 5.8% to $1.64 per share, starting in 2025.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • AbbVie Inc (NYSE:ABBV) reported sales that were $260 million above expectations, driven by robust mid-single-digit operational sales growth.

  • The ex-Humira platform, including Skyrizi and Rinvoq, showed impressive growth, with combined sales expected to exceed $17 billion this year.

  • AbbVie Inc (NYSE:ABBV) raised its full-year revenue guidance by $500 million and adjusted EPS guidance by $0.15, reflecting strong business performance.

  • The acquisition of Cerevel Therapeutics has strengthened AbbVie Inc (NYSE:ABBV)'s neuroscience pipeline, with positive Phase 3 results for Tavapadon in Parkinson's.

  • AbbVie Inc (NYSE:ABBV) announced a 5.8% increase in its quarterly cash dividend, marking a significant return to shareholders.

Negative Points

  • Humira's global sales declined by 36.5% due to biosimilar competition, impacting overall revenue.

  • The aesthetics segment faced challenges, with Juvederm sales impacted by economic conditions, leading to a decrease in the full-year sales outlook.

  • Imbruvica's global revenues decreased by 8.8%, reflecting competitive dynamics in the chronic lymphocytic leukemia (CLL) market.

  • The eye care segment remains a modest contributor to AbbVie Inc (NYSE:ABBV)'s overall revenue, with limited growth prospects compared to other segments.

  • There is uncertainty regarding the economic recovery's impact on the aesthetics market, which could affect long-term growth targets.

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